Here are some common real estate terms to know when getting ready to buy a home. REALTOR®: A real estate broker or sales associate who is a member of the National Association of REALTORS®. Glossary of Real Estate Terms Ad valorem —A Latin phrase meaning “according to value” that is usually used in reference to real estate taxation. It's customary for the buyer to pay for the lender's title insurance policy. Money saving tip: When buying a home, you don’t pay your real estate agent - they’ll get a commision from the home seller. The more a homeowner pays down a mortgage, the lower the outstanding mortgage will be, thus helping to increase their personal equity in a property. Every career field has its own lingo and sometimes we come into a field that has a lot of jargon. Appraisal —An estimate or opinion of value of a specific property as of a specific date resulting from an analysis of the facts about that property by a qualified impartial third party. Expert investor Than Merrill explains the best real estate strategies to help get you on the path towards a better financial future. These costs include the brokerage commission, mortgage-related fees, escrow or attorney's settlement charges, transfer taxes, recording fees and title insurance. A mortgage broker will deal with all the aspects of a deal between borrowers and … Real estate broker. For the best experience, please enable cookies when using our site. Cash Flow: Cash flow refers to the net income generated by a rental property, after subtracting the costs of owning and operating the property. In real estate, these signs are often used to advertise to investors and motivated sellers. Acceptance: Agreeing to the terms of an offer, thereby creating a contract. Offer: An offer is the initial purchase price point submitted by a buyer to a seller. If you're new to buying and selling homes or just need a refresher, check out our definitions of some common real estate lingo from A-Z below. 50 real estate terms you should know. One example is a buyer's contractual right to obtain a professional home inspection before purchasing the home. 4B/2B: Four bedrooms and two bathrooms. Distressed Property: A property becomes distressed when a homeowner defaults on their mortgage payments, is delinquent on paying property taxes, or is condemned due to disrepair. A "full bathroom" is a room with a toilet, a sink and a bathtub. Real estate agents are required to work under the supervision of a broker. Closing costs: All of the miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. We have homes for sale in Lewes, Rehoboth Beach, Henlopen Acres, Dewey Beach, Milton, Millsboro, Broadkill Beach, Slaughter Beach, and the rest of Sussex County, Delaware. Screening activities include running background and credit checks, as well as calling references. Equity: Real estate equity expresses the difference between a property’s current market value, and the outstanding amount on the mortgage. The real estate industry is notorious for its use of niche-specific lingo and acronyms. In-law pot'l: Potential for a separate apartment, subject to local zoning restrictions. Hard money loans typically require a large down payment and a short repayment time frame. Not all real estate agents are REALTORS®. Contract Assignment: A wholesaler operates by negotiating below-market-value deals with motivated sellers. For a more lighthearted look at real estate ad language, see What "As Is" and Other Real Estate Marketing Terms Really Mean. 2B/2B? Reading real estate advertising acronyms can sometimes feel like trying to parse ancient Greek: EIL with a W/D? You can unsubscribe at any time. A high ROI indicates favorable yields for the investor. 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