If you are thinking of buying or selling your home, are you confused by all of the trade jargon and abbreviations you see and hear?
I hear many real estate agents who tend to use trade language and abbreviations with their clients and prospects. From the looks on the faces of the non-real estate pros, it seems clear that they often have no idea what those agents are telling them.
I accompanied a buyer couple to an open house recently and the listing agent began spouting all kinds of sales talk that she apparently thought would inform my clients about the house, the neighborhood and various features.
My poor clients were very embarrassed because they didn't understand a lot of what she was trying to tell them, and they seemed eager to leave and get on to the next house.
When we left, I asked them if they knew the terms she was using and they admitted they didn't. It had made them uncomfortable and anxious to leave a house where they might otherwise have enjoyed spending more time. These are intelligent and educated people who were made to feel stupid by this agent who seemed to be showing off. And unfortunately this happens all too often.
I'm talking about the agents who spout such terms as SFR, PUD, APN, TDS, MLS, NHD, HOA, CC&Rs and others that we use daily when speaking to other real estate professionals, but we shouldn't forget that folks not in our business may have no idea what we are talking about.
I spend a great deal of time giving my clients definitions and explanations of commonly used real estate terms, and periodically when I use one again, I will remind them again of the definition. Pretty soon my clients are spouting them like old hands, and pretty proud of themselves for sounding like experts!
Here are some definitions of a few of those terms heard most often.
SFR: Traditionally, SFR has stood for Single Family Residence. Although a condominium or apartment is technically a residence of a single family, an SFR is normally a detached stand-alone home.
These days those initials also have a second meaning: Short sale/Foreclosure Resource. This is a designation that agents who have completed a training course may use to let consumers know that they have earned that status. Most agents working short sales have achieved that designation or one of the others that have a similar meaning.
PUD: A Planned Unit Development is usually a relatively large real estate development which has organized clusters of residential units (usually SFRs or duplexes), designated greenbelts or parks, sometimes a community center, pool or other recreational facility for the use of owners in the PUD, and sometimes including some commercial.
Most PUDs have rules and regulations about ownership and property uses (CC&Rs or Covenants, conditions and Restrictions), and may have a homeowners' association (HOA) to enforce the CC&Rs and charge dues to maintain the common areas.
APN: This is the Assessor's Parcel Number. Each county has its own numbering system, and it is the official way of identifying a property - even better than the street address.
REO: This stands for Real Estate Owned, and is the bank's term for the inventory of properties it has taken back by foreclosure. Eventually, real estate agents began using the term as well, as a shorthand way to refer to these properties.
TDS: This is the Transfer Disclosure Statement, which every seller must complete, disclosing all that he knows about the property's history and condition. It is important to note two things:
First, the operative word is "knows" - no seller is required to research anything at the county, but is required to answer truthfully to the best of his ability as to known issues. there are questions like whether there has been fire, flood, earthquake or other damage to that home, even if repaired; encroachments, environmental hazards, and what remodel work has been done, what appliances are included, etc.
Second, if you are buying a bank-owned property (REO), the bank might never have seen the property or know much about it at all and they will not normally complete the form.
MLS: Most people these days have heard of the MLS (Multiple Listing Service), but surprisingly some do not know what it is - especially first time home buyers. The MLS is where Realtors post information about their listings so that agents representing buyers can help their clients search for available homes. Realtors can also find history of the property and the showing instructions.
NHD: Natural Hazard Disclosure is required in California and many other states. Normally the seller pays for a disclosure firm to research whether the property is in an earthquake or flood zone, whether there are hazardous materials stored nearby or a weapons depot, or other natural hazards that might impact the buyer's decision to buy. This is different from and in addition to the TDS.
There are many other abbreviations, terms and phrases that those of us in real estate use daily, and which you as a buyer or seller might find in a listing on line.
If you are in the area in and around Sacramento and you have a question about something you have read or heard and you don't have an agent helping you, give me a call and I'll be glad to answer your questions.
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Susan Neal
Broker / Realtor
Century 21 Noel David Realty
Fair Oaks, California
Full time real estate services in Fair Oaks CA, with friendly professionalism, 30+ years experience.
I work hard to give my buyer or seller a low-stress transaction.
"Happy clients make me happy."
For all your real estate needs or questions, call me at (916)705-8951or visit my website at www.SusanNealFineProperties.com.
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