Real Estate Lingo
When it comes to buying and selling real estate, the language commonly used by your real estate agent can be confusing. Here are a few of the most commonly used words and phrases used in real estate, courtesy of Realtor.com.
Addendum - An additional document that amends or makes changes to a real estate contract.
CMA - Comparative Market Analysis. A CMA is a report prepared by an agent that gives prices of comparable homes that have recently sold, are currently on the market, or were previously on the market but did not sell. A CMA is useful tool for appropriately pricing a subject property for sale.
Closing Cost - All of the miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney's settlement charges, transfer taxes, recording fees and title insurance. Closing costs are generally paid through escrow.
Contingency - In a purchase and sales, when one event must occur before another can. For example, a buyer cannot close on a new house until their current house sells.
MLS - Multiple Listing Service. The MLS compiles and distributes information on homes for sale for use by real estate brokers. The MLS is not national, but can cover local or regional areas. For example, in Maine there is
REALTOR® - A licensed real estate broker or sales associated that is a member of the National Association of REALTORS®. Not all real estate agents are REALTORS®.
Title Insurance - An insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the lender's title insurance policy.
Source: Realtor.com "A Short Guide to Real Estate Lingo".