Real Estate Lingo (what the heck are they talking about?)

Youre going into your first realestate transaction and they're talking to you, and its going right over you head. Here are some key terms agents will use and what exactly they mean when they say it.

Competitive Market Analysis- You're selling your home and an agent says they're going to provide you with a CMA. This report will be used to figure out what your home is worth, using other properties in the area that sold within the same size and style.

Escrow- This is a third party holding onto your money for realestate transaction, its used to move funds from seller to buyer. Generally this includes your earnest money, property taxes and insurance is held in escrow.

Earnest Money- You're buying a home and the agent asks for earnest money. this money shows your seriousness in buying a home, generally is $1,000-$2,000. if theres no problems on your part in the transaction, you will get that money back.

Due Diligence Period- After your offer is accepted, this period begins. this is when you look at the home with you inspector, during this period you can withdraw yourself from the transaction and still get your earnest money back.

Encumbrance- Anything limited the property owner from doing what they want with the property such as zoning laws, HOA restrictions, tax liens. Owners are legally obligated to share encumbrance with home buyer.

TLC- "tender loving care" Whenever you see or hear TLC about a home, means that home is going to need a lot of renovation and repairs.

Sellers Concession- Contributions from the seller to help buying with closing costs.

Addendum- Document added to real estate contract or purchase agreement.

Appraisal- Approx. estimate of homes value, done by an appraiser.

Title- Legal document stating the owner of property and any past liens associated with it.

Transfer Tax- Charged by state, county , or city when ownership is transferred.

Fixture- May be leased or transferred as part of the property ( ex. chandelier)

Chattel- Objects that can be removed without damaging property (ex. furniture)