Real Estate Lingo | What You Should Know, Part 2
Real estate transactions can be complex, with a language all their own. Whether you’re buying your dream home or selling a property, understanding the terminology and abbreviations used in the real estate world is essential.
In part two of our series on terminology, we delve deeper into the lexicon of real estate professionals to empower buyers and sellers with the knowledge they need to make informed decisions every step of the way. Let’s dive in!
More Important Real Estate Terms Everyone Should Know
In the vast realm of real estate, there’s no shortage of terms and abbreviations to familiarize yourself with. Let’s explore some key definitions below:
- iBuyer: An iBuyer, short for “instant buyer,” is a company that uses technology and data analysis to make quick cash offers on homes. This can be an attractive option for sellers looking to sell property swiftly.
- In-law potential: This term refers to the suitability of a property for accommodating an in-law or extended family member, often indicating separate living quarters or other amenities.
- Lender: A lender is a financial institution or individual who provides funds to borrowers for purchasing a property. Understanding the terms and conditions of your lender is crucial in any real estate transaction.
- Listing: A listing is a property that’s available for sale. It includes details such as price, location, features, and more. Listings can be found in various places, including online platforms and through real estate agents.
- Lo dues: “Lo dues” stands for low dues, which usually refers to low homeowners’ association fees. This can be an attractive feature for buyers concerned about ongoing expenses.
- Lock box: A lock box is a secure container, typically attached to the front door of a property, that holds the keys for access to the home. Real estate agents use lock boxes to facilitate showings.
- Lsd pkg: This abbreviation denotes a leased parking space or parking spot that may or may not be included with the property.
- MLS: The Multiple Listing Service (MLS) is a database used by real estate professionals to share property listings. Access to the MLS is essential for both buyers and sellers, as it provides comprehensive property information.
- Mortgage: A mortgage is a loan used to purchase a property. It typically involves regular payments over a set period, often 15, 20, or 30 years.
- Mortgage broker: A mortgage broker is a middleman who connects borrowers with lenders. They can help you find the right mortgage product and navigate the application process.
- Nr bst schls: This abbreviation indicates proximity to near-best schools, which can be a significant factor for families with school-aged children.
- Offer/counteroffer: In real estate negotiations, the buyer makes an initial offer, and the seller may respond with a counteroffer, starting a back-and-forth until both parties agree on terms.
- Pot’l: Short for “potential,” this term is often used to describe a property’s untapped possibilities for future value.
- Pre-approval: Getting pre-approved for a mortgage involves a lender assessing your financial situation and offering a conditional commitment to lend you a specific amount for a home purchase. Pre-approval can strengthen your offer as a buyer.
- PITI: PITI represents the four components of a monthly mortgage payment — the principal amount, interest, property taxes, and homeowners insurance. It’s important to understand how these factors contribute to your overall housing costs.
Get Real Estate Insight From Coakley Realty
Navigating the real estate market can be challenging, especially when it comes to understanding the terminology and making informed decisions. At Coakley Realty, we’re here to help you every step of the way. Our experienced team can provide you with valuable insights, expert guidance, and the knowledge you need to make confident real estate choices.
Don’t let the intricacies of real estate terminology and processes overwhelm you. Contact Coakley Realty today for a consultation, and let us assist you in achieving your real estate goals!