The ABC's of Real Estate

While there are definitely other words that fit with each letter, these are the words that first came to my mind. Feel free to suggest your own!

AGENCY - this is the relationship a real estate agent has with his/her client. It could include Buyers Agency, Sellers Agency, Designated Agency and/or Dual Agency

BROKER - as an agent, this is who you work for and are paid by. It is typically the name of the company you see on the yard sign such as my company Semonin Realtors.

CLOSING - this is ultimately where we want to end up. If we make it to closing my clients get paid and/or get their next home and I get paid!

DISCLOSE - be honest when selling your home. Disclosure material facts that could affect another party's decision...if not you may fall into some legal trouble.

EQUITY - you want to build as much equity in your home as possible. This can occur through sweaty equity and elbow grease, home price appreciation or just simply making your monthly payments.

FHA Loan - Federal Housing Administration that insures 100% of these loans. For buyers, it means you typcailly only need 3.5% down for a home.

GRANITE - what just about every homeowner/buyer wants in their new home. Great selling point!

HOMEOWNERS ASSOCIATION - neighborhood organization that oversees the properties and homeowners in the neighborhood. Sometimes you'll be required to pay a monthly or annual fee for the privilege to live in the area and upkeep the common areas. This is very common with condominiums.

INVESTMENT - real estate, over the long-term, is still and will be one of the best financial investments you can make. Don't expect to gain too much over the course of 2-3 years but you can typically expect to see nice returns after a 5+ year period.

JACUZZIS - what I which I had at my house.

KEYS - what I lose all the time.

LISTING - that's the "name of the game" when your a real estate agent. More listings, more clients, more contracts, more sales.

MLS - aka "Multiple Listing Service" is an agents' best friend. This is where they locate property for sale and determine property values.

NOTE - the is the signed obligation by the borrower to repay a debt. This is typically confused with "I got a mortgage"...the truth is "You got a Note".

ORIGINATION FEE - this is the fee charged by the lender for processing a loan. It is typically equal to 1% of the loan amount.

PRE-APPROVED - thinking about buying a home? Consider getting pre-approved first...it'll make the process faster, give you a price range and give you negotiating leverage with the seller.

QUARTERS - (this one was tough) As an independent contractor, "Real Estate Agent", we work a 4 quarter year and pay taxes quarterly.

REALTOR - member of the National Association of Realtors. Not every real estate agent is a Realtor as this is something you must pay into annually.

SEAN - the person you should hire to be your next REALTOR because he does such a great job!!

TAXES - you're guaranteed 2 things in life: Death & Taxes. And that applies to real estate well. Hello property taxes...

UNDERWRITING - the people you'll never see that determine whether to loan you money or not. They base this decision on your credit, employment, assets and other factors that evaluate your risk to them.

VA Loan - loan through the Veteran's Administration that permits a borrower to finance up to 100% of the value of the property.

WALK THROUGH - this is the final inspection of the property by the agent and future owner prior to closing to confirm that all contingencies have been met and the property's condition has not changed.

XEROX - this machine has become one of my best friends. As an agent you're always scanning/faxing/copying/printing.

YIELD - the % you gain on an investment. $100,000 that is worth $104,000 the next year had a 4% yield (aka appreciation)

ZONING- regulations that control how a property may be used i.e. Residential, Commercial, etc.