![]() If you want to work with real estate investor clients, read our own Sean Moudry’s simple, yet thorough run down: “ How to Explain 1031 Exchange Rules to Your Clients.” A The catch is that they must sell one property and buy a similar one within a set time frame. This tool, also known as a like-kind exchange, allows investors to defer paying capital gains taxes on a sale. Download it now and add it to your new homebuyer drip campaign for 2023!Ĥ Key Interest Rate Questions That Could Save Your Clients MoneyĪnd now we present the 131 real estate terms you need to know-and be able to define for clients-in 2023: So we’ve included a handy download with questions your clients should ask their mortgage broker. After all, great communication leads to closed deals.įurthermore, in today’s market, understanding our complex mortgage industry could actually help you close more deals and maybe even save clients money. These real estate definitions will help you ensure you’re communicating with clients effectively. That’s why we compiled this comprehensive list. Even if you know every one of the 131 real estate terms on this list and how to use them, your clients expect you to be their interpreter throughout the transaction. Buyers typically pay for the lenders title insurance policy as part of the closing costs.Whether you’re a veteran agent or a rookie hoping to sound authoritative during your first transaction, you need to be able to succinctly explain common real estate terms and definitions to your clients. Title insurance as it is named protects against claims against the title or from unexpected or fraudulent claims of ownership. Title Insurance – Title insurance is an insurance policy that protects the lender’s or owner’s interest in real property. A short sale arrangement is made between the seller and the mortgage lender. The lender typically agrees to forgive the rest of the loan. Short Sale– A short sale is when the seller arranges with their mortgage lender to accept a price that is less than the amount they owe on the property. The MLS is used for real estate professionals to share information about homes for sale to other agents. Membership is not open to the general public. Real Estate brokers are members of the MLS. MLS – The MLS or Multiple Listing Service is an organization that collects, compiles and distributes information about homes listed for sale. Entry is usually granted after obtaining permission from the listing agent or office. This allows cooperating real estate professionals to gain entry into the home. ![]() It is used to hold a key for a home that is for sale. Lock Box – A lock box is a secure key-holding device. This is typically made at the time of the offer to purchase. Common contingencies are a buyer’s contractual right to obtain a professional home inspection before purchasing the home or obtain mortgage financing.ĭeed –The deed is the legal document conveying title to a property.Įarnest Money Deposit – The earnest money deposit is a deposit made by the potential home buyer to show that he or she is serious about buying the house. ![]() The CMA accounts for style, size, location and other factors that make the homes comparable.Ĭontingency – A contingency is a provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. A CMA may be prepared for a buyer or a seller to determine market value. A CMA compares the prices of homes sold, homes currently on the market and homes pending to a subject property. These costs can include real estate commission, mortgage fees, attorney fees, transfer taxes, recording fees, and title insurance.ĬMA –CMA is short for comparative market analysis or competitive market analysis. Here are a few real estate terms decoded.Īssessed Value – Assessed Value is the valuation placed on property by a public tax assessor for purposes of taxation.Ĭlosing Costs –Closing costs are all of the miscellaneous expenses paid by the buyer and the seller when a real estate transaction closes. Buying or selling a home can be complicated enough but add in the lingo and you may feel like you are listening to a foreign language.
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