Understanding Real Estate Lingo

When you are buying or selling a home you will run across many new and confusing terms and acronyms. I will address some that are important that you should look out for during your buying and selling process and shed some light to keep you better prepared before you embark on your next real estate venture.

Comparative market analysis (CMA): An in-depth analysis, prepared by a real estate agent, that determines the estimated value of a home-based on recently sold homes of similar condition, size, features and age that are located in the same area. In real estate we are consistently running CMAs to determine value. While preparing a CMA as a real estate agent we try to mimic the process of an appraiser in order to estimate the appropriate value for your home.

Closing costs: Fees associated with the purchase of a home that are due at the end of the sales transaction. Fees may include the appraisal, the home inspection, origination fees, a pest inspection, title and escrow fees and more. Buyers should budget for an amount that is 1% to 3% of the home’s purchase price.

Closing Disclosure (CD): A five-page document sent to the buyer three days before closing. This document spells out all the terms of the loan: the amount, the interest rate, the monthly payment, mortgage insurance, the monthly escrow amount and all closing costs.

Buyer’s Inspection Notice and Seller’s Response (BINSR): to request and negotiate repairs to the property.  The BINSR is an addendum to the Arizona Association of Realtors Residential Purchase Contract that allows, in an organized manner, the Buyer to request repairs and the Seller to respond

Seller Property Disclosure Statement (SPDS): Pronounced “Spuds” The SPDS is designed to protect YOU, the Seller.  It gives you the opportunity to disclose things about your home to potential buyers, so that they can make informed decisions. Sellers are legally obligated to disclose all known material facts about the property to the Buyer.  By putting everything is writing and handing it over to potential buyers it can help reduce the number of questions you have to field. The SPDS is an 8-page document and it will ask you about your ownership, building and safety information, utilities, environmental information, sewer or wastewater treatment, and more.

 

Brennen Kent, Realtor

Verrado Realty

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