Every profession has its own jargon – those terms and abbreviations that are familiar to insiders, but may represent a whole new and somewhat mysterious language for newcomers. As a first-time homebuyer, rest assured that you’ll soon become fluent in the language of real estate. If it has been some time since you were last involved in a real estate transaction, you may also find yourself at a loss. To help you over the learning curve, here are few definitions to get you started.
Closing Costs – the various expenses paid by either the buyer or the seller when the real estate deal closes. These include the brokerage commission, mortgage-related fees, escrow or attorney's fees, transfer taxes, recording fees, title insurance, and so on. Generally, both buyers and sellers end up paying something toward the closing costs bundle.
CMA – “comparative market analysis” or “competitive market analysis” - this is a report typically prepared by a real estate professional showing the prices of homes that are comparable to the home in question. The CMA homes may be properties that are still on the market or were recently sold.
Contingency – a consideration within a sales agreement that keeps the agreement from being legally binding until a certain condition is met. For example, a buyer may stipulate that a home inspection will need to be completed before he or she will purchase the home.
Fixture – anything of value that is permanently attached to, or a part of real property. Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are often subjects of buyer and seller disputes, so if you believe that a particular item should transfer with the home, get it in writing.
Listing – technically, this is the agreement between a real estate broker and a homeowner allowing the broker to market and sell the home. Sometimes, though, the word also refers to the home itself. A home being sold by an owner without the services of a real estate agent is not a listing.
MLS – “Multiple Listing Service” - MLS is an organization that collects, organizes, and distributes information about homes listed for sale by the real estate brokers who are its members. MLSs are local or regional – there is no MLS that covers the whole country, although some MLSs may sell or rent their listings to real estate websites.
Title Insurance – an insurance policy that protects an owner’s or lender’s interest in a property from various types of unexpected or fraudulent claims of ownership. The buyer is typically required to pay for the lender's title insurance policy.
All of us here at the Sullivan Group are happy to help you navigate the property market here in Fairfax County. Contact my office at 703-222-3300 or speak with me directly on my cell at 703-268-6380, or by email at csullivanrealty@gmail.com.
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