- ACTIVE: This means the property is currently on the market and available for sale. It may have received offers, but none have been accepted, which means that the opportunity for you to make a proposal is wide open.
- APPRAISAL: The process of estimating, fixing, or setting the market value of real property. An appraisal may take the form of a lengthy report.
- BACK ON MARKET (BOM): A property that has come back on the market after a pending sale.
- BUILDING PERMIT: A written permission granted by the county building department and required prior to beginning the construction of a new building or other improvement (including fences, fence walls, retaining walls, and swimming pools)
- CMA: Comparative Market Analysis. A CMA is a report that shows prices of homes comparable to a subject home, and that were recently sold. The sold prices, known as comps, can help homeowners determine how much their home is worth in the current market.
- CLOSED (CL): The property is sold and no longer available.
- CLOSING COSTS: On closing day, when you finalize the purchase of your home, you’ll have to pay for a variety of fees associated with the home-buying process, such as title insurance and escrow fees. It’s typically about 1% of the purchase price.
- CONTINGENT: A contingent status means that the seller has accepted an offer and the home is under contract. That sale is conditional upon certain criteria being met by the buyer and/or seller before the deal can close. Examples of contingencies are home inspections, termite inspections, buyer financing | appraisal, cash funds (Ex: contingent on obtaining cash funds from the sale of another property), SRPDS (Seller’s Real Property Disclosure statement), and title reports.
- DOWN PAYMENT: The lump sum in cash that you can afford to pay at the time of purchase.
- EXPIRED: The property listing with the agent has expired and it is no longer active, usually because it didn’t sell. This means the seller is still open to accepting an offer so it’s worth touching base if your curiosity is piqued.
- FIXED-RATE MORTGAGE: The mortgage’s interest rate will never change, even if the term of the loan is 30 years. This can be good or bad, but it will always be predictable. Interest on fixed-rate mortgages is almost always higher initially than on an adjustable-rate mortgage, but you’ll be protected against rate hikes; a pitfall of adjustable-rate mortgages.
- FIXTURE: Anything of value that is permanently attached to or part of a real property. This can include wall-to-wall carpeting and light fixtures.
- FSBO: For sale by owner.
- INTEREST: Nothing is free, especially when you are using someone else’s money. Just like your car or student loans, you will pay back the money you borrowed from your lender (most likely a bank) with interest- a percentage of the principal you borrowed.
- LISTING: An agreement between a real estate broker and a homeowner that allows the broker 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.
- 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 brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listing websites.
- PRINCIPAL: After you make a down payment, the rest of the money you owe on your home is called the principal. This is what you will be paying off, monthly, over the lifetime of the mortgage, which can last anywhere from 5 to 30 years-usually 30.
- RATE LOCK: An option to lock in an agreed-upon rate for a certain period, to protect you from short-term fluctuations in the mortgage market. A rate lock may remain in effect until closing, but only if you close by an agreed-upon date, usually 60 days. It typically costs a fee but can save you money if interest rates rise.
- REAL ESTATE AGENT: Anyone who earns a real estate license can be called a real estate agent, whether that license is as a sales professional, an associate broker, or a broker.
- REAL ESTATE BROKER: A person who has taken education beyond the agent level as required by state laws, and has passed a broker’s license exam. Brokers can work alone or they can hire agents to work for them.
- REALTOR®: A real estate broker or sales associate who is a member of the National Association of Realtors®; which means that he or she must uphold the standards of the association and its code of ethics. Not all real estate agents are Realtors®.
- TEMPORARILY OF MARKET (TOM): The owner has removed the property from the listings for an undetermined period, usually because work is being done on the house or because the home cannot be shown. It may return to active soon though, so it’s worth piping up if you’re smitten.
- TITLE INSURANCE: An insurance policy that protects a lender 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.
- UNDER CONTRACT (UC): The seller has an agreed-upon contract with a potential buyer. This is not the same as closed.
- WITHDRAWN: A property has been withdrawn from the realty market.