As with all industries, real estate professionals have developed a lingo and acronyms to help them communicate with each other more easily. For the first-time homebuyer (and even some veterans), making sense of property listings can sometimes leave you feeling like you're deciphering the DaVinci Code.
Many clients have asked for verification as to the meaning of some of this lingo. This also includes the categories or subcategories that are on the multiple listing service. Given the limited amount of space to type remarks, agents usually abbreviate as much as possible sometimes losing the real message.
Let's take a look at a sample real estate listing:
2,500 sf on a c-d-s, 2BR, 2.5BA, CA, spac grt rm w/ wbfp, grmet kit, det gar
Looks a lot like alphabet soup. However, using this type of abbreviated property description saves valuable advertising space. Some abbreviations you'll probably encounters are:
In addition to the abbreviations in property listings, here are a few other common terms you should become familiar with.
FSBO-For Sale By Owner. This term refers to a property which the homeowner is trying to sell independent of a real estate professional.
MLS-Multiple Listing Service. MLSs are comprised of a group of real estate brokers who have agreed to share their property listings. This listing is then provided to the group through a database or directory. If you are buying your home, this is the service that your sales professional will use to search for potential homes for you to purchase. If you are selling your property, your real estate professional can list your home through the MLS. For-Sale-By-Owner (FSBO) properties are typically not listed through the MLS.
CMA-Comparative Marketing Analysis. This analysis is an informal assessment of a property's market value. This is one of the tools your real estate professional can use to help you determine a reasonable listing price. Usually, the CMA compares your property with similar properties that have sold in your area within a certain time frame. Besides purchase price, some of the information typically listed is the number of bedrooms and baths, size of major rooms, amenities such as fireplaces and pools, age of the home, and property taxes.
During the real estate process, you'll more than likely come across more acronyms and lingo. Make sure you ask your real estate professional to explain any terms you are unfamiliar with so that you are not in for any surprises.
By the way, the listing above was a 2,500 square-feet home on a cul-de-sac, with two bedrooms and two and a half baths, central air, a spacious great room with a wood-burning fireplace, and a gourmet kitchen and detached garage.
For many, retirement is a time when people shift priorities and put their own needs first. One of the most important choices they need to make is where to live in retirement. Choosing the right community and home is an important and challenging decision.
Ask yourself, do you want to:
• Remain in the home you occupied before retirement?
• Remain close to your present community, but move to a different home?
• Move to another county or state, or to a different climate?
• Move into your present vacation property?
Where to Live
If you lean toward moving to another region, start reviewing options based on general climate, seasonal changes, lifestyle, and proximity to family and friends.
For example, the Southeast is becoming a popular destination. It has more temperate climates than the Northeast, and golf and outdoor recreation are abundant. The region offers a wide range of living environments from which to choose: coastal, mountain, woodland, rural, and both planned and urban communities. But, while Florida has almost year around sunshine, the Carolinas offer seasonal change.
Many people choose to live where they play. If finances allow it, some may consider the owning two or more homes so they can change their address along with the seasons. This is one of the reasons why second home sales have increased dramatically over the past few years.
When you've narrowed it down to a few possible destinations, compare them on the basis of these factors:
Financial
• Estimate the income you'll need to retire in that area
• Evaluate your resources and tax consequences
• Speak with your financial advisors about how long your retirement resources can last in any given area
Housing
• Research average home sale prices and cost of living in areas you like
• Factor in costs such as property taxes and utilities.
• Review summer and winter comfort factors, such as high temperatures, humidity, or snow and ice.
• Look at psychological factors such as excessive cloudiness or rain or fog.
Personal Safety
• Research violent crime and property crime rates in areas you like
• Find details in the FBI's Crime Index, and local police departments.
Services
• Investigate the supply, availability, and quality of health care, public transportation, and continuing education in each area.
Employment
• Evaluate the potential for pursuing a part-time or full-time second career.
Leisure Living
• Find out if the area offers the variety and quality of restaurants, cultural events, and recreational activities you want
When researching your options, you may want to start with the Internet, where there is a wealth of information. Other resources include your local library, trade associations such as the American Association of Retired Persons (AARP), local organizations in the areas of interest, visitor bureaus, Chambers of Commerce, local newspapers and vacation guides.
Retirement can be the best time of your life. Be sure to plan it wisely.
It is extremely important for you to have the home that you plan to purchase professionally inspected. The basic process involves a home inspector who is hired by the buyer to perform a thorough investigation of the structure and systems on the buyer's behalf. The inspection typically takes from 2 - 4 hours and should consist of a check of at least the following items:
It is not necessary that you be at the home during the entire inspection. However, I recommend that you schedule it so that you can arrive during the last 20-30 minutes and allow the inspector to physically show you each of the defects or conditions derived during the inspection. The report provided will outline the entire inspection but I've found it's much easier for you to understand and feel comfortable about your purchase if you have the opportunity to ask questions specifically about each item while you are standing in the home.
Below are some questions to ask as you interview inspectors. This is another cost of buying a home and you want your money to be well spent.
1. What are your qualifications? Are you a member of the Georgia Association of Home Inspectors, American Association of Home Inspectors or National Association of Home Inspectors?
2. Do you have a current license? Inspectors are not required to be licensed in every state.
3. How many inspections of properties such as this do you do each year?
4. Do you have a list of past clients I can contact?
5. Do you carry professional errors and omission insurance? May I have a copy of the policy?
6. Do you provide any guarantees of your work?
7. What specifically will the inspection cover?
8. What type of report will I receive after the inspection?
9. How long will the inspection take and how long will it take to receive the report?
10. How much will the inspection cost?
It's a good idea to interview 2 or more professionals for any job you are considering. Cost is also not the driving factor; a thorough inspection with complete details of repair or replacement items is the goal. Spending hundreds to do the inspection can save thousands down the road!
Eco-friendly. Carbon footprint. Global warming. Energy-efficient.
These catch phrases have become part of our lexicon as we've become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being "green" with these five tips:
Change Your Light Bulbs
By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.
Buy ENERGY STAR® Appliances
ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.
Seal Up
Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won't shrink or crack, creating less waste.
Use Less Water
Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.
Adjust the Thermostat
When adjusting your home's thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.
Going green doesn't have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a "greener" place.
You've found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home. But before you get the key, there's one more step-the closing.
Also called the settlement, the closing is the process of passing ownership of property from seller to buyer. And it can be bewildering. As a buyer, you will sign what seems like endless piles of documents and will have to present a sizeable check for the down payment and various closing costs. It's the fees associated with the closing that many times remains a mystery to many buyers who may simply hand over thousands of dollars without really knowing what they are paying for.
As a responsible buyer, you should be familiar with these costs that are both mortgage-related and government imposed. Although many of the fees may vary by locality, here are some common fees:
Appraisal Fee: This fee pays for the appraisal of the property. You may already have paid this fee at the beginning of your loan application process.
Credit Report Fee: This fee covers the cost of the credit report requested by the lender. This too may already have been paid when you applied for your loan.
Loan Origination Fee: This fee covers the lender's loan-processing costs. The fee is typically one percent of the total mortgage.
Loan Discount: You will pay this one-time charge if you have chosen to pay points to lower your interest rate. Each point you purchase equals one percent of the total loan.
Title Insurance Fees: These fees generally include costs for the title search, title examination, title insurance, document preparation and other miscellaneous title fees.
PMI Premium: If you buy a home with a low down payment, a lender usually requires that you pay a fee for mortgage insurance. This fee protects the lender against loss due to foreclosure. Once a new owner has 20 percent equity in their home, however, he or she can normally apply to eliminate this insurance.
Prepaid Interest Fee: This fee covers the interest payment from the date you purchases the home to the date of your first mortgage payment. Generally, if you buy a home early in the month, the prepaid interest fee will be substantially higher than if you buy it towards the end of the month.
Escrow Accounts: In locations where escrow accounts are common, a mortgage lender will usually start an account that holds funds for future annual property taxes and home insurance. At least one year advance plus two months worth of homeowner's insurance premium will be collected. In addition, taxes equal approximately to two months in excess of the number of months that have elapsed in the year are paid at closing. (If 6 months have passed, 8 months of taxes will be collected.)
Recording Fees and transfer taxes: This expense is charged by most states for recording the purchase documents and transferring ownership of the property.
Make sure you consult a real estate professional in your area to find out which fees-and how much-you will be expected to pay during the closing of you prospective home. Keep in mind that you can negotiate these costs with the seller during the offering stage. In some instances, the seller might even agree to pay most of the settlement costs.
It’s not just about buying a piece of property; this is a financial decision that is serious for everyone involved. This significant life event requires understanding and preparation.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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