Back to the Basics

By
Real Estate Agent with Chelsea Stevens Marketing

For first time home buyers the process of buying a home can be overwhelming...especially if you don't have the right Realtor. When I bought my first house, I had no idea of the process. I did not know what Earnest Money was, or anything that was involved in the month that it took to close on my new property. I do my best to make sure that I put myself in the buyers shoes with every new client, this keeps me grounded and reminds me that the lingo I use daily may be foreign to some people.
So, this week, I thought I'd go over a few things first time home buyers need to know.

Today, I thought I'd start with some basic terms you might hear when discussing the buying process.
Trust Account: An account held by Seller's Broker that is just for holding clients or any other persons funds until a transaction is completed
Earnest Money: This is money that is used as good faith in conjunction with an offer. If the offer is not accepted, then you get your immediately check back. If the offer is accepted, then your earnest money is deposited in a Trust Account. At the completion of the transaction, you either get your money back in the form of a check, or it is credited to your closing costs. If you have an accepted offer and you back out without good reason, the seller has rights to keep the earnest money.
Listing Agent: The agent assisting the seller.
Selling Agent: The agent assisting the buyer.
Dual Agent: If both the buyer and the seller are represented by the same agent, or by two separate agents of the same office.
Multiple Listing Service or MLS: This is the system used by Realtors to pool all listings together. This only includes homes that are listed with Realtors. It gives all Realtors access to the listings of all properties in the area, even those held by other offices.
Abstract: A summary of documents that are compiled into one or more small books that primarily tell a basic history of the property, such as previous owners, and leins held on the property.

Alright, there's a start. Any questions so far? Ask!

Comments (2)

Lori Cofer
Beasley Realty - Moscow, ID
REALTOR, Moscow Idaho Real Estate

Chelsea,

 

This is a wonderful post -- a first time home buyer's cheat sheet!!!!!

 

Lori Cofer REALTOR

Pullman WA

Feb 19, 2009 08:14 AM
League City, TX - Worrell Team, REALTORS, GRI, CNE
RE/MAX 1st Class - League City, TX

As a first-time home buyer, you need to make sure you have someone representing YOU... A Dual agent becomes a Dueling agent.  They can't effectively represent either party!  Good post!  Thanks.

Feb 27, 2009 02:17 PM