Decoding Real Estate Listings - A Short Guide to Lingo and Acronyms

Decoding Real Estate Listings - A Short Guide to Lingo and Acronyms

Real estate ads are usually full of acronyms and terms that are unfamiliar to first-time buyers. Here's a cheat sheet to let you in on the lingo.

4B/2B: four bedrooms and two bathrooms

assum fin: assumable financing

bedroom: usually a sleeping area with a window and a closet, but the definition varies in different places

bathroom: There are three types of bathrooms: a full bathroom is a room with a toilet, a sink and a bathtub; a three-quarter bathroom has a toilet, a sink and a shower; a half bathroom or powder room has only a toilet and a sink.

closing costs: the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission; mortgage-related fees; escrow or attorney's settlement charges; transfer taxes; recording fees; title insurance and so on. Closing costs are generally paid through escrow.

CMA: comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market but did not sell within the listing period.

contingency: a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer's contractual right to obtain a professional home inspection before purchasing the home.

dk: deck

expansion pot'l: expansion potential means that there's extra space on the lot or the possibility of adding a room or even an upper level, subject to local zoning restrictions.

fab pentrm: fabulous pentroom, a room on top (but under the roof) that has great views

FDR: formal dining room

fixture: anything of value that is permanently attached to or a part of real property. Fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt about who will have ownership of fixtures, get it in writing.

frplc, fplc, FP: fireplace

gar: garage

gard: garden

grmet kit: gourmet kitchen

HDW, HWF, Hdwd: hardwood floors

hi ceils: high ceilings

in-law potential: potential for a separate apartment, subject to local zoning restrictions

large E-2 plan: one of several floor plans available in a specific building

listing: an agreement between a real estate agent and a home owner that allows the agent to market and arrange for the sale of the owner's home. The word " listing" is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn't a " listing," it’s called a FSBO (for sale by owner).

lo dues: low homeowner's association dues. Do your research to find out just how " low" the dues actually are compared to other dues in the area.

lock box: locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent

lsd pkg: leased parking area; it may come with additional cost

MLS: Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate agents. Membership isn't open to the general public, although selected MLS data may be sold to real estate listings Web sites. MLSs are local or regional. There is no MLS covering the whole country.

nr bst schls: near the best schools

personal property:movables, such as appliances and furniture

pot'l: potential

pvt: private

pwdr rm: half bathroom or powder room

real property: real estate is legally called “real property”

REALTOR®: a real estate agent or sales associate who is a member of the NATIONAL ASSOCIATION OF REALTORS®. Not all real estate agents are REALTORS®.

title insurance: an insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the lender's title insurance policy.

upr: upper floor

vw, vu, vws, vus: view(s)

Buying Step Offers, Counteroffers and Negotiation

When you are ready to buy, you will need to make a written offer. REALTORS® have standard purchase agreements and will help you put together a written, legally binding offer that reflects the price as well as terms and conditions that are right for you.  Your REALTOR® will guide you through the offer, counteroffer, negotiating and closing processes.

How Much Should You Offer?

You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, a successful offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order. Your REALTOR® will help you determine a suitable offer price and terms.

Terms and Conditions

While much attention is given to offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers - or additional costs. Terms are extremely important and should be carefully reviewed; they may include an escrow deposit, contingency deadlines for inspection and/or mortgage approval, payment of closing costs, etc.

Contingencies and “Subject to” Clauses

Buyer offers often contain contingencies or “subject to” clauses that must be met before the contract is considered binding. This gives you time to take care of final details. Contingencies can include the following:

approved financing

buyer selling an existing home

satisfactory home inspection report

test results for environmental factors including radon, mold and water quality

termite inspections

easements

liens

Work with your REALTOR® to determine which contingencies you should include for your home buying situation. You will likely be required to include a time clause, also called a kick-out clause, which limits the contingency to a short time period (say 12, 24 or 48 hours) should the seller receive another acceptable offer.

How Do You Make an Offer?

When a home is made available for sale the owner is essentially making an offer to buyers: for a given number of dollars and other terms you can acquire this home. Buyers, in turn, can respond with several options:

accept the offer

decline the offer

make a counteroffer

The process of making offers varies around the country. Typically, you complete a written offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counteroffer.

What is a Counteroffer?

A counteroffer is nothing more than a new offer with different terms. Offers and counteroffers reflect the back-and-forth activity of the marketplace. It's a common, efficient and practical process, but also one that may contain tricky clauses and hidden costs. Because of this, and because counteroffers are common, it's important for buyers to remain in close contact with a REALTOR® during the negotiation process so that any proposed changes can be quickly reviewed.

How Do You Negotiate?

No aspect of the home buying process is more complex, personal or variable than bargaining between buyers and sellers. This is the point where the value of an experienced REALTOR® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Real estate bargaining typically involves compromises by both sides. It's not war; it's not winner-take-all. Instead, negotiating should be seen as a natural business process: buyers should be treated with respect, and owners should never lose sight of either their best interests or their baseline transaction requirements, which must be met before the home can be sold.

There are a lot of considerations, not just price, in making and negotiating offers. This is where the working with an experienced REALTOR® can guide you to a win-win negotiation.

Keys to Selling Your House When Sales are Slow

What was once a booming residential real estate market across the country has slowed to a trickle.

It’s a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs. When things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying, If your home is priced too high, you many never get buyers to even consider looking at your home.

Quickly cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody wants to “give” their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to make the sale more quickly.

Finding the right agent is critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They’ll help with everything from pricing to advising you on the other 6 points in this article. Finding leading agents who outsell other agents in your home town are the type of professionals you’ll need on your side. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several – hire the one who you believe will do the best job for you.

Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn't stand out from the rest then it’s time to get to work.

Consider home staging. The quickest way to add home value to a home for sale is a fresh coat of paint. But after you do that, you may want to consider home staging. Either do it yourself or hire an outside firm to do so. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it more appealing to prospective buyers.

Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don’t have the time or skill, find a handyman to go through your home and make repairs.  Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

Offer flexible terms. Flexibility is the key now. You’d like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home, but the buyers make a bid near the asking price – including the appliances.  Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high – you don’t want to lose the only buyer who has looked at your home in a month.

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Real Estate Q&A

Q. What is a home warranty and who pays for it?

A. A home warranty is insurance and peace of mind after you purchase your home. If a mechanical component in your home fails within the first year, you simply call your warranty service provided and they will send out a technician.  Depending on the plan you usually pay $75 - $100 deductible per separate occurrence.

A home warranty can be provided by the seller, real estate agent, or purchased by the buyer. Some properties are sold with a home warranty that is paid by the seller. If your purchasing a short sale, most times the Bank will not allow the seller to pay for a home warranty. In these cases your agent can provide the home warranty as an incentive for doing business with them. In all cases the buyer has the choice to purchase their own warranty if no party is willing to provide it. The home warranty must be purchased at closing.

Special notes -
1. Not all home warranty plans are the same. If your purchasing a home that is advertising a home warranty, ask for a brochure or more information about deductible and what is covered.
2. Home warranties usually don't cover cosmetics or bad carpentry.
3. You can upgrade and or extend your warranty by calling the service provider.
4. +Shorewest Realtors recommends a home warranty.

For more information visit http://www.onlinehsa.com/

Disclosure -  Questions regarding legal issues will not be answered. All information provided are only  opinions, and by submitting question you agree to waive any legal rights or liabilities.


Follow me on Facebook: www.facebook.com/AndyGonzalezRealEstateProfessional

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Email me for a free property evalutation or with any questions to andygonzalez@shorewest.com
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Ask Me Your Real Estate Related Questions

Do you have a real estate questions and need answers? Post or email me your question to andygonzalez@shorewest.com. If question is specific to a property or situation please provide a detailed summary. Note -  as a real estate agent I cannot give legal advise.

Disclosure -  Questions regarding legal issues will not be answered. All information provided are only  opinions, and by submitting question you agree to waive any legal rights or liabilities. 



Follow me on Facebook: www.facebook.com/AndyGonzalezRealEstateProfessional

Search for homes on my Website - www.wisconsinmaphomes.com

Email me for a free property evalutation or with any questions to andygonzalez@shorewest.com
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The Right Real Estate Agent for you

What makes me the right Real Estate for you? 

With over 10 years of combined experience with Mortgages and real estate experience, I truly understand the business. My experience includes Team lead for M&I Bank in the Mortgage Collections division, Short Sale Negotiator for +JPMorgan Chase, Mortgage Insurance Adjuster for MGIC, and finally a Realtor for +Shorewest Realtors. My experience and countless training programs attended while in corporate America really set the stage for my success as a real estate agent. I understand not just the real estate side, but the full equation and duties of all parties involved in any given transaction. How many agents can say the same. 

After years in corporate and working hand in hand with Realtors  I decided to make the leap in to real estate. I completed all the requirements and received my real estate license. I joined the Greater Milwaukee Association of Realtors. I wanted to increase my knowledge, so I upgraded my accreditation to Broker Associate. I can't say it was all flowers and roses. Early in my career I made mistakes as I endured the learning curve. However, I was relentless in improving my skills. After each transaction I became more confident and expanded my knowledge.  Being a former short sale negotiator I focused primarily on pre-foreclosure sales. I slowly expanded my transactions to include buyers, investments, and commercial. 

In real estate the most important factor is price. If your a buyer you want a good deal, and as a seller you want the most for your home. Early on I felt a lack of experience in pricing homes, so I went back and received the Broker priced Option designation. I then applied to all the asset companies to due bpo's. Since then I've priced over 500+ homes for bank's and other financial institutions. I can truly say today that I'm a price expert, a statement most agents cannot say. Seller's and buyer's can feel safe that I'm advising them intelligently and in their best interest. Doing bpo's expanded my knowelege of prices outside my general marketing area. I've completed values in most parts of Milwaukee County. This insight really gives me a clear picture of market condition. 

When it comes to negotiating, I regard myself as pro. As a short sale negotiator they taught and beat into us the skills needed to negotiate. I've read many books on the subject and practiced the strategies for years. Seller's and Buyer's can feel safe that I'm confident and not afraid to negotiator on their behalf. 

I've completed a lot of do it yourself projects on my own home, however working with investors and estimating repair cost on bpo's really gave me great insight. I'm very familair with the mechanical parts of your home. I've trained my eye to spot potential problems for my buyers. When I price a home for a potential listing, we go in dept over condition to give an accurate fair market value of the home.

We have learned to be skeptical with sales people in every industry. We heard the horror stories of being taken advantage of, and sales reps only out to make more money. I can truly say this is not me. A successful transaction and a happy customer equals repeat business and referrals. So if you looking to sale or buy your next home, please look me up. I will be happy to assist you in a successful transaction. 

Follow me on Facebook: www.facebook.com/AndyGonzalezRealEstateProfessional

Search for homes on my Website - www.wisconsinmaphomes.com

Email me for a free property evalutation or with any questions to andygonzalez@shorewest.com

visit Company website: www.shorewest.com