Translating Real Estate Terminology 101

It could be rough jumping into the search for your dream home in Encinitas – especially when you don’t know all of the jargon used in the real estate world. Well according to an article in A Girl’s Guide to Real Estate, we could get the names of these acronyms cleared up for you.

When you’re reading multiple articles the lingo could get a little confused don’t worry, here’s a brief list on what different acronyms you need to know:

HOA: The Homeowners Association. These people are the ones who are the marketers, the sellers and the managers of the subdivision you would like to live in in Oceanside. They charge quite a bit, and once you start your search, you regularly should be asking your Oceanside Realtor what the HOA fees.

FSBO: For sale by Owner. This is just the person who owns the home in Oceanside you’re looking for, well either that or his/her lawyer. For sale by owner usually means that the present homeowner is trying to save a little cash – because Realtors usually take six percent of a sale.

NAR: National Association of Realtors. Each real estate agent, including the one that you work with is a part of this association. They’re there to assist you and protect you.

REO: Real Estate Owned. Usually after the home doesn’t sell at a foreclosure, the Oceanside real estate has been repossessed by the bank or lender. Many of these homes are not in good shape, so research immensely.

BPO: Broker’s Price Opinion. In the same breath as REO, this is the appraisal given by the Oceanside Realtor. These are ballpark estimations not the official property value. These are supposed to give you the idea of what the foreclosure will calculate out to.

CMA: Comparative Market Analysis. The CMA, which is a better and more reputable source than the BPO is not as accurate as a full property appraisal, but it takes similar properties in the area into account.

MLS: Multiple Listing Service. Homebuyers in Oceanside, receive the MLS portal, which is a free internet service that indicates real estate listings for sale by agents and others in the real estate industry who are multiple listing service members. To facilitate sales transactions, the database and software are also utilized by real estate brokers.

S&L: Savings and Loan Association. Essentially like bank, in which this is also called a thrift. The majority of the deposits go towards mortgages and it’s held by both the people how make the deposits and the ones who lend the money. Their specific purpose is to help you own a home in Oceanside.

1031 Exchange: This is when you sell one property and buy another. This tedious process are when you found two properties in Oceanside that are qualified real estate, and in a tight time-frame, you have to do a large transfer of funds. If the deal works out for you, then you may or may not have to pay taxes.

 

By Linda Moore

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