Just like in the cop world, where I spent 17 years as a full timer – we had a certain way of speaking that left all of our civilian friends with that blank stare in their eyes. After all of the courses that I taught and the training that was necessary for me to endure. Training necessary in order to present in front of other police officers, new, used :-), and veteran, plus the civilians, learning to speak like a “human” again was very important.
Buyers and sellers often feel that there should be a separate dictionary to explain real estate terminology, where simple words and acronyms create a different lingo altogether. Buying and selling real estate is difficult enough, involving agreements and contractual issues as important aspects of each step of the process. Arming oneself with knowledge can unveil some of the intricacies of a real estate transaction and make the entire transaction more understandable.
Here are a few real estate terms and acronyms that come to mind:
- FSBO, for sale by owner, meaning a house is being sold by its owner and a REALTOR is not involved.
- FHA, Federal housing Administration, provides mortgage insurance on loans that are granted through FHA approved lenders.
- HUD, the U.S. department of Housing and Urban Development, offers a wealth of information about real estate, financing, and assistance.
- As-Is, a home is being sold in its current condition, regardless of what a home inspection uncovers. What you see is what you get!
- Flipper, not everyone’s favorite dolphin but a person who buys a home, typically makes changes or improvements, and puts it back on the market at a higher price.
- Deed-In-Lieu, deed in lieu of foreclosure, a way to avoid foreclosure by signing the deed for a property over to the lender.
- Clear Title, a title that is free of liens.
These are but a few real estate terms that arise in any given situation, and a great reason for using a REALTOR during the buying and selling process. It is wise to know what is involved throughout a real estate transaction and even wiser to use a professional who is well versed in both the practice and the terminology of real estate in general.
Click here to read an entire glossary of terms related to real estate from RealEstateABC.com.