Whether you are a first-time home buyer or a third-time home seller, the real estate transaction can be confusing and stressful enough even without the many terms and acronyms used during the process. But don't be overwhelmed — we've compiled a mini-glossary of the important terms you should know and familiarize yourself with to help you better understand what’s going on with the home sale.
It’s good to remember what Steve Jobs said: “There’s always one more thing to learn.”
The ABCs of Real Estate
A: An appraisal is a professional estimate of the value of the property by a certified appraiser. Lenders always require a home appraisal before they will issue a mortgage. Appraisers look into similar homes in the area that have been sold recently, also known as “comps,” and also take into account the home's condition, square footage, location, and quality to make an accurate assessment of how much the home is worth. There are many myths surrounding the home appraisal that buyers and sellers should be aware of to better understand this valuable process.
B: A backup offer is a secondary offer on a home that is under contract between the first buyer and the seller. It becomes active when the primary sale falls through due to a number of reasons. A backup offer can be a useful tool to keep a buyer motivated to get the home that he/she wants.
C: A contingency in a real estate contract is anything that puts a condition on the buyer's willingness to proceed with the purchase. Some of the most common contingencies include the financing contingency, inspection, sale, title, and appraisal contingency. A buyer will typically reserve the right to recover her earnest money if the contingency is not satisfied.
D: Down payment is the amount of money a home buyer pays directly to a seller and ranges between zero to 20 percent of the home’s purchase price, depending on the type of the loan. In the 2018 NAR Aspiring Home Buyers Profile, many home buyers have indicated that the most difficult step in the home buying process is saving for a down payment. However, there are popular loan assistance programs that can help buyers afford a mortgage, including the FHA loan, where buyers can get a mortgage with as low as 3.5 percent down payment. Likewise, the VA and USDA loans require no down payment at all for eligible home buyers.
Bonus: The Debt-to-income ratio (DTI) is a personal finance measure that compares an individual’s debt payment to his or her overall income. A low debt-to-income ratio demonstrates a good balance between debt and income. Borrowers who have lower DTIs are more likely to successfully manage monthly debt payments. Reducing your debt-to-income ratio can help improve your credit score, which lenders will evaluate when you’re applying for a mortgage loan.
E: Escrow is a term for a neutral third party that handles the exchange of money and documents (purchase agreement, deed, loan documents, etc.) in compliance with the Purchase and Sale Agreement and any escrow instructions. Escrow handles the transfer of the buyer's loan documents and property taxes and works with a buyer's lender and real estate agent to make sure the title of the home is clear of liens before the transfer of ownership.
Bonus: The Earnest Money Deposit is the money a buyer pays soon after a home seller has accepted his/her offer on a home, and is different from a down payment. Once the sale of the home has been completed, the earnest money the buyer paid will be applied toward the closing costs. If the buyer backs out of the sale due to a failed contingency, he/she can recover the earnest money in full. However, if the buyer backs out of the sale for reasons not covered by contingencies, he/she will forfeit the earnest money.
F: Foreclosure is a process that transfers the right of home ownership from the owner to the bank or lender after the owner defaults on his loan.
Bonus: For-Sale-By-Owner, more commonly known as FSBO (pronounced “fizbo”), is used to describe a homeowner who is selling their property without the help or representation of a real estate agent. FSBOs remain at an all-time low of 8 percent, according to the NAR 2017 Profile of Home Buyers and Sellers. At least 89 percent of home sellers continue to work with real estate agents to sell their homes.
G: The GreatSchools Rating by GreatSchools.org provides essential information to parents so they can choose the right school for their family. Since proximity to good schools is a major factor especially for buyers with children and young families, the GreatSchools Rating is a helpful tool for parents in evaluating the schools and school district they’re considering.
H: Homeowners’ Association (HOA) is a nonprofit organization that manages a shared housing complex, including condos and other planned developments. The HOA provides funding for repairs, grounds maintenance, and security by collecting money from homeowners. It also creates and enforces rules for the properties.
I: An inspection, or typically known as a home inspection, is a thorough investigation of a property’s condition by a licensed inspector. It is the home inspector’s job to assess the condition of the property and look for any flaws that need to be fixed, even if a house looks like it’s in great condition.
J: A jumbo loan or jumbo mortgage is a loan whose principal value exceeds the standard limits for Fannie Mae or Freddie Mac, the two government-sponsored enterprises that buy loans from banks. This type of loan is available for borrowers who do not qualify for a conforming loan and is commonly used for luxury homes.
K: Key rate refers to the specific interest rate that determines bank lending rates and the cost of credit for borrowers. In the US, the two key interest rates are the discount rate and the Federal Funds rate.
L: List Price is the price of a home for sale set by the seller and his/her listing agent. Real estate agents help set the price of the home right by doing a Comparative Market Analysis (CMA) to provide an accurate home valuation. Setting up a correct list price won’t turn off potential buyers and increases the chances of the home getting sold.
M: The Multiple Listing Service (MLS) is a suite of around 700 regional databases, wherein each regional MLS has its own listings. Agents pay dues to access and post homes on each one, and they may become a member of more than one MLS if they want to have a broader reach for their clients. Only licensed real estate agents and brokers can list homes for sale on the MLS.
N: Net Proceeds is the amount of money a seller takes away from selling a home, after taking into account the agent commissions and closing costs.
O: Open House is an event where a house or property is open for viewing to potential buyers for a scheduled period of time. Many open houses occur on weekends, especially on Sundays.
P: A pre-approval is an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan. During the process, a lender will evaluate the income and expenses of the borrower, including taking a thorough look at the borrower’s credit report and score. Getting a mortgage pre-approval is the first step serious first-time home buyers should do before they even go house-hunting. It will provide buyers a crucial guideline of what loan they can get, how much they can afford and how much the bank will lend them.
Q: A quitclaim deed is a legal document that transfers ownership of a home from one party to another, but does not give any guarantee as to what is being transferred. It simply transfers whatever interest the homeowner has in the property to his/her recipient. For an instance, a quitclaim deed can be used by a divorcing couple if the husband needs to transfer their jointly-owned property entirely to his wife.
R: A real estate agent is an individual who is licensed to negotiate and arrange real estate sales; including showing property, listing property, filling in contracts, listing agreements, and purchase contracts. Real estate agents are generally licensed to operate under the supervision of a real estate broker. In the NAR 2017 Profile of Home Buyers and Sellers, at least 89 percent of home sellers worked with a realtor to sell their home, while 87 percent of buyers purchased their home through a real estate agent. Especially for first-time home buyers, hiring a great real estate agent can help you save time and resources on your journey to purchasing your dream home.
S: A short sale happens when an owner is selling their home for less than the mortgage they owe on it. The lenders may agree to take a “short” on the mortgage to release it for sale. A short sale is typically seen as the last step before a foreclosure. It often happens after a low appraisal or a decline in property values.
T: Title is the right to ownership of a specific real estate property. Once the transaction closes, the buyer will receive a final title policy recording their names as the new legal owners, along with the amount of title insurance. The most common methods of holding title in real estate are the joint tenancy, tenancy in common, and sole ownership.
U: Upfront Costs refers to all the costs a buyer pays once his/her offer on a home has been accepted, including earnest money, the inspection fee, and the appraisal fee.
V: The Veterans Affairs (VA) home loans are unique mortgage options for current and former members of the military, offered by the U.S. Department of Veterans Affairs. Veterans, active-duty service personnel, select Reservists or National Guard members, as well as spouses of military members who died while on active duty, are among those who can qualify for this loan. The VA provides a home loan guaranty benefit and other housing-related programs to help them become homeowners.
W: Walkthrough refers to the final inspection of a home before closing. Buyers should complete a final walkthrough with their real estate agent to make sure any agreement to make repairs on the property have been fulfilled before the closing papers are signed.
X: Xeriscaping is a creative and sustainable landscaping that conserves water and is based on sound horticultural practices. The process was originally developed for drought-affected areas and is best for areas with water restrictions. In xeriscaping, the need for maintenance is minimal and water requirements are low. The practice relies on using local plants accustomed to the climate and getting the most out of everything you plant. Homeowners can lessen the impact on their local environment by creating this type of sustainable landscape. A good xeriscape can also raise property values more than extensive landscaping.
Y: A yield spread premium (YSP) is the compensation a lender pays a mortgage broker to sell a loan with a higher interest rate. The YSP is listed on the loan estimate and Closing Disclosure.
Z: A zero-lot-line property is a building that comes to the very edge of the property line on at least one side. Units may be attached to one another in a zero-lot-line housing development, leaving no room for a yard. Many townhouse developments are built on zero-lot-lines.

Dear
- you're in great hands -
Meet

Proven Track Record
Service
Knowledge
Integrity
An MAI of 30 is typically balanced; over 30 is a seller's market, under 30 is a buyer's market.
Buyer markets
Seller markets
View current market trends
Processes
1
Consultation

2
Pre-Approval

3
Property tours

4
Write offer

5
Under Contract or Escrow

6
Appraisal

7
Inspections

8
Closing

Unique Value I Provide My Clients
Professional Network
Price Range
Beds & Baths
Property Types
Raving Reviews
Review has been shortened using AI, click the review to read the full review.
Review has been shortened using AI.
Loyalty
Reviewing each others roles and responsibilities as we embark on the next steps of your home-buying journey is how we can decide if we are ready to be loyal to one another.
Counseling Session Activities
- Prepare the buyer for executing a buyer representation agreement
- Explain agency relationships to the buyer and get state required legal consent to represent, if needed
- Inform the buyer of working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies
Building a Relationship
- Learn the buyer’s wants and non-negotiable needs
- Understand the buyer’s budget and what will be needed financially
- Help the buyer understand what property their chosen budget will buy
- Consider having the buyer fill out a homebuyer’s checklist
- Assist the buyer in examining how much they can afford to spend
- Provide quality lender resources
- Partner with the buyer to locate suitable properties for consideration
- Match the buyer’s needs with available property
- Constantly re-evaluate buyer’s needs and refocus property showings to fit those needs
- After ensuring the buyer understands what is done for them, how it is done,and the benefit to them, obtain signatures on the buyer representation agreement
- Explain how compensation is paid, who pays it, and what the buyer’s options are for paying it
Educating the Buyer
- Communicate the working relationship based on state law, the REALTORS® Code of Ethics, and the broker’s business policies
- Explain Federal and State Fair Housing laws
- Explain what to look for in applicable property disclosures
- Reassure the buyer that their personal information will remain confidential
- Inform the buyer that you will always disclose all known material defects
- In accordance with state law, provide information on checking the sex-offender registry and crime statistics for the neighborhood
- Discuss available resources that the buyer can check to learn more about prospective neighborhoods

Preparing the Buyer
- Explain the timeline for house hunting, mortgage approval, and closing
- Explain the local market and how it impacts the buyer
- Show statistics on what percentage of list price sellers in the area are currentlyreceiving
- Inform the buyer on what home features are popular
- Identify current average days on market
- Share the dangers of using the price per square foot to figure home values
- Explain the concept of absorption rate and how it impacts the buying process
- Indicate current listing months of market inventory
- Share estimated potential out-of-pocket costs to complete the transaction
- Assist the buyer in analyzing the loan estimates
- Qualify the buyer for financial ability to purchase
- Help the buyer account for the complete costs of homeownership
- Prepare lender for listing agent calls
- Assist in comparing different financing options
- Help the buyer select for viewing only those homes that fit their needs
- Proceed in showing homes that fit the buyer’s must-haves
- Caution the buyer on posting information to social media
- Review the sample sales contract so the buyer is prepared when it comes time to make an offer
Showing Properties
- Schedule showings and provide access to all listed properties as soon as they become available in their local MLS broker marketplaces
- Educate the buyer on the immediacy of new listings appearing in their local MLS broker marketplaces and the lag time for them to appear on some websites
- Collaborate with the buyer on properties they may have learned about through their sphere contacts
- Research and assist on all unlisted properties the buyer wishes to see
- Preview properties prior to showing if needed
- Network with other agents to source properties not yet in their local MLS broker marketplaces
- Contact homeowners in focus areas to see if they are considering selling
- Set up an automated email alert system through their local MLS broker marketplaces that immediately notifies the buyer of properties that fit discussed requirements
- Arrange a tour of areas, schools, and key points of interest
- Provide resources containing neighborhood information on municipal services,schools, etc.
- Inform the buyer of negative aspects like nearby venues or operations that may result in issues that could impact value
- Collect and share any other vital information on available homes, remembering to follow all fair housing laws at all times
- Check applicable zoning and building restrictions
- Help the buyer decipher public property and tax information
- Collect and share pertinent data on values, taxes, utility costs, etc.
- Compare each property shown to the buyer’s wants and needs list and remind them of what they were looking for
- Help the buyer narrow the search until the buyer identifies top choices
Negotiating Offers
- Assist the buyer in getting the best property at the best price
- Suggest that the buyer learn more about the neighborhood prior to makingan offer
- Prepare a comparative market analysis (CMA) in advance of making an offer
- Prepare the buyer to have the most attractive offer in the current marketplace
- Explain common contract contingencies and include approved protective clauses in the purchase offer
- Ensure that the buyer receives and understands all state and federally-required disclosure forms
- Prioritize contract negotiation goals with the buyer
- Help create a negotiating strategy
- Use strategies such as an escalation clause to maintain a competitive offer
- Prepare the buyer for a multiple offer situation and develop negotiation strategies
- Write an offer that has a reasonable chance of being accepted
- Recommend optional contingencies and explain the pros and cons of using them
- Provide information on purchasing incentives that may be available
- Discuss financing alternatives
- Negotiate the buyer’s offers to arrive at the best price and terms
- Utilize hyperlocal expertise and strong communication skills to assist the buyer in being the successful offer

Let's Chat.
I look forward to working with you.

Thank you!
This is only the beginning of an exciting journey to a bright and shining new future. And it's only the beginning of our commitment to servicing your every real estate need. Thank you for the opportunity to help you find your perfect home!

Starting August 17th, 2024

By Signing the Agreement to Partner with an Agent
