Real estate glossary pdf

An estimate of the number of months it will take to deplete the current Inventory given recent sales rates. This is an indicator of the state of the market, whether it is a buyers' market or a sellers' market. The benchmark for a balanced market favoring neither buyer nor seller is 5.

Higher numbers indicate a buyers' market, lower numbers a sellers' market. The number of properties put onto the market during the month. In a recovering market, we expect that new listings will eventually rise as sellers raise their estimations of value. But this increase will take place only after the market has turned up, so New Listings are a lagging indicator of the health of the market.

Also be aware of properties which have been withdrawn from the market and then relisted. These are not really New Listings. The number of property listings that went from "Active" to "Pending" status during the month. Because of the typical length of time it takes for a sale to close, economists consider Pending Sales to be a decent indicator of potential future Closed Sales. It is important to bear in mind, however, that not all Pending Sales will be closed successfully.

So, the effectiveness of Pending Sales as a future indicator of Closed Sales is susceptible to changes in market conditions such as the availability of financing for homebuyers and the inventory of distressed properties for sale. It focuses on negotiating strategies and tactics, networking and referrals, business planning and systems, personal performance management and leadership development. The Institute confers the Certified Real Estate Brokerage Manager CRB Designation, while continuously providing members with the educational, informational and networking resources necessary to compete and succeed in the real estate marketplace.

REBAC is the world's largest association of real estate professionals focusing specifically on representing the real estate buyer.

RRC designees focus on home buying and selling, ethical standards, technological expertise, in-depth knowledge of neighborhoods, a high level of professionalism and commitment and an ability to maximize client profits and minimize client costs. It is designed to elevate professional standards and enhance personal performance.

The designation is awarded to real estate practitioners by the Real Estate Business Institute REBI who meet specific educational and practical experience criteria.

The SIOR designation is held by only the most knowledgeable, experienced, and successful commercial real estate brokerage specialists. To earn it, designees must meet standards of experience, production, education, ethics, and provide recommendations.

The Council is a community of real estate professionals creating business opportunities, developing skills for the future and achieving individual potential for success. Some tools may not be available. Also called an installment land contract, installment sales contract, land sales contract, real estate contract, and other names. Any purported acceptance of an offer that introduces new terms is a rejection of that offer, and amounts to a counter-offer.

Often used to clear up a cloud on the title. It contains no warranties of any kind, and does not convey after-acquired title. A complete or perfect escrow is one in which everything has been deposited to enable carrying out the instructions. To conduct any negotiations of sale terms, the finder must be a licensed broker or he violates the law. The process by which secured property is seized and sold to satisfy a debt.

Real estate is considered a capital asset if it is income property, or property used in a trade or business. Actual money loaned and secured by a trust deed as opposed to a loan carried back by a seller, in which no money passes. It sometimes indicates anyone who is entitled to inherit a decedent's property. Interest can be paid periodically or at maturity , when principal is paid in a lump sum.

It is also referred to as an installment sales contract or an agreement of sale. LEASE A contract between owner and tenant, setting forth conditions upon which the tenant may occupy and use the property and the term of the occupancy. LIEN A lien makes the debtor's property security for the payment of a deBtor the discharge of an obligation. Comparable sale prices are factored in, thus giving sellers a relative fair market value for their home.

This helps lessen the risk taken on by mortgage lenders who tender loans to risky borrowers — often those who have financial difficulties and, thus, need to turn to HUD for their housing needs. Its mortgage insurance program has been around since the s and helped nearly 3 million borrowers purchase homes from This is far and away the most popular type of mortgage given to borrowers today.

Because, as noted in our real estate definition for adjustable-rate mortgages, fixed-rate mortgages are the same each and every month of the amortization period. There is no potential fluctuation with interest rates, as there is with ARMs. So, as long as your clients lock into a low rate, they can more capably plan their finances around their consistent monthly payments to their lenders. Chats with your leads will reveal some of them have considered going the for-sale-by-owner route to list and sell their home.

Unsurprisingly, FSBOs continue to plunge in popularity — meaning more sellers understand the countless benefits of working with seasoned, knowledgeable real estate pros. If you have a buyer interested in saving a little money, going the foreclosed avenue could be ideal, given banks often want to get as much back for these residences as possible. Just know there are some key mistakes to avoid when helping clients buy foreclosures.

Essentially the opposite of economic obsolescence, functional obsolescence refers to a worsening of the physical nature of a property which has led to a lower home value. A leaking and cracked roof or a crumbling staircase are prime examples of deficiencies in a residence that can lead to diminished home values. As WorkingRE points out , though, superadequacies — or over-improvements — can also contribute to functional obsolescence. Borrowers have numerous things on their plate when shopping for mortgages: from getting pre-qualified and pre-approved to trying to secure a good interest rate.

One aspect of this research process that can ease the stress a little bit is a good-faith estimate, or GFE, provided from lenders to prospective borrowers. This is a fairly straightforward real estate definition: A grantor is the home seller who transfers their deed to a grantee, the home buyers.

According to The Balance, there are different types of deeds a grantor can convey to a grantee — this will vary from state to state. The deed that will be transferred will outline all specs for the property in question. Since there are a million moving parts no pun intended to relocating to a new area for work, employers often hire home-finding or relocation service providers.

One agent can handle a home sale side, while the other can deal with the purchase side. Buyers get to live in a residence they can experience life memories in — and build equity in. The more mortgage balance a borrower pays off, the more home equity they gain.

Conducting home improvement projects and putting more down on a home can increase equity. In the long term, though, the best way for your buyer clients to get more from their investment is to continue to pay their mortgage in full and on time.

An appraiser provides sellers a specific home value figure at which they recommend sellers list their home for sale. A home inspector investigates the physical structure of a house to locate any structural deficiencies and ensure everything is up to code. Common items an inspector will check for include heating and cooling systems, insulation, walls, floors, and ceilings.

Any issues found in a home can lead to issues in a housing transaction. The important thing is to get at least a couple of opinions for any sellers you represent to get as accurate a figure as possible. Insurance covers homeowners when unforeseen issues arise with their homes: the garage door collapses, a tree hits the siding, et cetera. Broken pipes, malfunctioning heating, a washer and dryer in need of repair — these are arguably the most common items a home warranty covers for homeowners.

Buyers obviously would enjoy the benefits of securing a warranty for their new residence, but it can provide sellers with a safety net of sorts should they need to fix things in their home when selling. Buyers who purchase properties that operate within a homeowners association are bound by the rules of said HOA.

That means whatever rules and regulations an HOA has set up for homeowners e. What you may not know already is there are different types of homeowners insurance. Dwelling coverage, for instance, can provide owners with money to repair or rebuild their homes should substantial damages occur.

Add-on policies can also be affixed to your primary policy. For example, sewage-backup insurance can cover expenses related to fixing your home after sewage water damages it. By taking advantage of the Internet Data Exchange, or IDX , you can streamline the types of listings that appear on your website. Some site providers, like Placester, offer seamless IDX integration , meaning you can showcase certain properties on your homepage and a completely different set of properties on other pages, like ones for specific districts or neighborhoods.

Latent defects , like mold hiding beneath the surface of a floor or wall, can often go unfound by inspectors. This makes it incredibly important for buyers and their representation to ensure every nook and cranny of a listing is researched.

Without this due diligence , your buyer could end up with a lemon of a home — something no agent wants to see for their client. Commonly known as a landlord, the lessor is the owner and operator of an investment property. They rent out their unit s to renters — or lessees. If you want to ease into your career as a real estate agent, you can work with renters looking to lease. Lessors who operate large-scale properties, like apartment buildings with a dozen or more units, often work with leasing agents to fill their units year-round.

Some represent their listings themselves, but more often than not, these landlords hire out agents or teams of agents to fill the available openings.

A worst-nightmare situation for home sellers and their agents is having a lien placed against their residence. This happens when a party says they are owed a debt by the owner of a property. Oftentimes, a lien is presented to prevent the sale of a home: An alleged owner or co-owner of a property can stop a housing transaction from moving forward. There are voluntary liens, which is a standard one given from lenders to borrowers. Then, there are involuntary liens — usually in the form of tax liens and construction liens for unpaid taxes and renovation costs.

If your client wants to sell their home quickly as opposed to the best possible price, these tips and tricks from Zillow can help. In short, a listing is what you help your buyer clients attempt to purchase you research the market where they want to buy and provide a list of best-fit homes for sale to them or help your seller customers sell through constant digital and offline promotion.

You want to get home sellers to select your agency to represent their property sale over all other sales reps in your market — in other words, you want to get them to enter into a listing agreement with your firm: a period during which you have a finite amount of time usually 90 days to sell their residences.

Listing presentations like these offer you the chance to show off your industry experience and expertise and convince sellers you know how to get the job done — and can do so for them. You can discover several real estate listing presentation best practices and a free presentation template in this Placester Academy guide. In the case of mortgage originators , their goal, first and foremost, is to convince potential borrowers their home loan product is the premier one for them.

To ensure they only provide the absolute necessary amount of money to a borrower, lenders calculate the loan-to-value ratio. They take the size of a home loan and divide that by the value of a property a borrower is interested in purchasing to get this ratio.

It depends on how fiscally solvent a borrower is. Loss mitigation was quite popular during the recent housing crisis. Many homeowners fell severely underwater on their home loans. To ensure they received at least some return on investment from the mortgages they provided to these owners, banks and lenders hire third-party loss mitigation specialists to act as mediators.

In short, these professionals help homeowners come up with a modified repayment plan. Sometimes, this repayment plan requires homeowners to liquidate their assets. This rate lock to potential borrowers allows them to capitalize on the low rates and, in all likelihood, pay lower points fees to the lender when signing for their loan.

Agents need data — and lots of it — regarding listings on the market to sell them. Buyers want to know everything there is to know about a home for sale before they make offers. Multiple Listing Services — of which there are roughly in the U. There are MLSs for just about every local housing market across the country, with a few exceptions.

Agents, such as yourself, can then integrate this listing data on their real estate websites. This takes place when both a buyer and seller agree to the rough terms and conditions associated with a home sale. Found in and featuring upwards of 1. This means they, along with their agent, need to develop a seller net sheet that outlines what they anticipate earning from their sale.

This typically only occurs when a seller is fiscally well-off enough to provide a loan to a buyer. Why would a buyer rather get a loan from a seller than a bank, you ask? Well, not every buyer has the financial standing to get mortgages from proper lenders. So, in these situations, they can try to find listings on the market for which the owner is willing to offer assistance — with interest attached, of course. The math is simple: The more prospective buyers you get interested in your property, the better your chances are of securing more offers — and possibly even a bidding war.

Some sellers prefer to keep news of their home for sale quiet and, in turn, avoid listing their property on their local MLS. In this case, their residence is a pocket listing — hidden away from buyers. These two terms may seem like they refer to the same action potential borrowers take before securing a mortgage, but they are slightly different.

In order to be pre-approved for a home loan , a future buyer needs to be pre-qualified. Pre-qualification occurs when a lender determines a borrower has all of their finances in order and is a worthy person to receive a mortgage. Pre-approval occurs after this period and is a written statement from a lender — the same one.

These are the elements that comprise a monthly mortgage — PITI for short. The principal accounts for the larger portion: the actual loan itself. Property taxes and homeowners insurance are usually rolled into monthly home loans as well. Sometimes, borrowers will pay these expenses separately. This is a declaration that states they will pay back their home loan in its entirety. Once a borrower has repaid their loan debt in full, they will be released from their mortgage and promissory note accordingly a.

When your client sells their home, they will transfer their warranty deed over to the new owner. This document provides the deal has been finalized and the buyer now has full control and ownership of the property.

A quit-claim deed , on the other hand, is a deed that changes hands, from one person to another, but when there is no money involved. Rather, the owner simply decides to transfer the deed to the second party. These deeds comie into play most frequently when someone decides to give their residence to someone else in their family at no cost.

Once a loan is paid off, lenders will release borrowers from their contractual obligations with them via a reconveyance deed.