You are excited, you are looking or have found that perfect piece of property! Or you are ready to sell. You have the perfect real estate agent and you are ready to move forward. As you are going along in the process, your agent throws out some terms you have never heard of and here comes the deer in the headlights look. Don’t let your transaction fail because you do not understand some of the common lingo of agents and transactions.
Good Faith Estimates-This is an estimate of what your settlement charges and loan terms would be. Keep in mind this is just an estimate and it can change dramatically at the end of the process. Your agent and lender should keep you up to date on any major changes.
Pre-Approval-Your pre-approval from your lender is a “conditional” approval. Many people all too often think when they are pre-approved they are golden with a loan. Be aware that major changes to your life like purchasing a new car or paying off credit cards, could hurt your loan approval and you may then in turn not qualify for the loan. You don’t have the loan until you are closed. With a pre-approval you have the go ahead to shop around for property but be conscientious of your spending!
What is a “comp”?-A comp is short for comparable. Comps are what agents use to compare properties on the market to get a “market value” of a property. It is a very useful tool for sellers and buyers. The seller usually will get a CMA-Comparative Market Analysis, showing recent sales and active listings as a guideline to assist in pricing their property. For buyers, using comps on the market can help them make a good decision on what properties are overpriced or underpriced in the market area. All too often people rely on Trulia or Zillow for a comparable, but these sites can be inaccurate and out of date.
MLS-The Multiple Listing Service or MLS is the local platform that agents go to enter listings or find listings for buyers. It is the most accurate data for property search. Your agent will always have the most up to date information on listed properties in your area. For sellers, this is where your listing gets published for all the local agents to find. For buyers, your agent will be able to email you the most current listings on the market!
These are just a few confusing words agents use everyday. If your agent says something you don’t understand do not hesitate to ask! We love to help you along your journey of home buying and selling!
by Jennifer Kunz-Sales Associate