The home-buying process comes with its own lengthy lexicon. Certain terms used throughout the transaction between negotiations and paperwork can be overwhelming. Here, we dive in to a few terms that are worth knowing:
GLOSSARY OF REAL ESTATE TERMS
Addenda (Addendum): An attachment to the Purchase & Sale Agreement.
Agency: The relationship that a real estate agent has with a customer or client.
Buyer Broker: An agent who represents the buyer in a transaction.
CMA: Comparable Market Analysis, or an opinion of a home’s value.
Comps: Properties used as” comparables” on a CMA.
Disclosure: Verbal and/or written communication regarding agency, property condition, etc.
Down payment: Initial investment on a home loan.
EM deposit: Earnest money deposit, or good faith deposit provided as consideration when a buyer offers a contract to a seller.
FHA: A type of loan, government insured financing.
Key box: MLS electronic key which allows agents access to listed properties.
List (Listing): When a seller signs a listing agreement with a broker to market their property.
Listing Agent: Agent who takes a listing on behalf of the broker.
Lock-box: Another term for a key box.
Lock-in: A term to obtain the interest rate at today’s rate, or lock-in the rate.
MLS: Multiple Listing Service. An organization that distributes information on properties listed by MLS member brokers.
Property Profile: An informational/fact sheet about a property on the market.
Purchase and Sale Agreement: A contract between a buyer and a seller to purchase real property.
Transaction: A listing sold or the sale of real property.
VA: A type of loan, government guaranteed financing available to military veterans.