What Do All of those Real Estate Terms Mean, Anyway??
If you're working with a REALTOR® or real estate agent, I'm sure you noticed we use lots of terms. Words you don't really use in YOUR every day conversation.
A few of them that come to mind are:
Comparables Market Analysis Saturation Rate Recordation Signing COE BINSR SPDS CLUE
We get so used to using them, we can sometimes forget that our clients, our buyers and sellers, aren't really familiar with those terms and abbreviations, and often won't even ask.
I'll try to give a very brief definition in regards to Real Estate Transactions in Pima County, Arizona. Feel free to contact me for a more complete answer:
Comparables are homes that are on on the market for sale, or have been sold - most like YOUR property.
Market analysis is when we take all of those homes for sale, or that have been sold, and compare them to your home, and explain the market value of YOUR home, or the home you are looking to purchase.
Saturation Rate - It's sort of like the number of homes on the market/months of inventory. Example: 1000 homes on the market, and 100 of them sold in the last 30 days/month. That tells us that it would take ten months at the current rate of sales to sell all current inventory or, we have a 10-month supply of inventory. This is helpful when you want to know how long it might take to sell your home.
BINSR - Buyer's Inspection Notice and Seller's Response: After a buyer's home inspections and due diligence (research of property) is completed, usually within 10 days of contract acceptance, this form is filled out and sent to the seller stating whether or not the premises is accepted, rejected, or items are disapproved. It gives the seller a chance to correct the items disapproved or not.
CLUE - part of your due diligence wherein you receive an insurance company's 5 year history of claims on a property. (So you can find out whether or not there was something like a fire, or water damage, etc - that wasn't reported on the SPDS).
SPDS - Seller's Property Disclosure Statement - Sellers are required by law to disclose all known important facts about the property to the buyer. Failure to disclose can leave the seller with liability. There are a few disclosures that are not obligatory and are pointed out on the cover page of the document.
Signing is where the buyer and seller meet with the Title and Escrow officer and provide legal proof of their identity, sign the closing documents and have their signatures notarized
COE - Close of Escrow - the end of the legal process involving your property's purchase or sale and at which time you can receive or hand off keys.
Recordation - This is the actual Close of Escrow. and is a legal procedure where the recorder of deeds (Pima County, AZ) "records" a conveyance establishing an individual's claim to a property, making it public record. It is recorded in the county where the property is located.
So, to answer in print my most-asked question from buyers - "No, you do not get the keys at signing, even though you handed over a check, or wired funds, etc." Keys are given at Recordation, when the property is legally, and publicly yours - protecting your liability as well as the seller.
No question is ever too silly to be asked, and I want to assist you in your home buying or selling process. I like to think of myself as a resource, and if I don't know the answer, I'll find someone who does! Questions from our clients help us all to grow, and to remember that we didn't always know the definitions ourselves!
What do All of Those Real Estate Terms Mean? If you have questions you'd like answered, please contact me. I'm happy to answer by phone, email, or in person.