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Real Estate and the Lingo Within the Real Estate Industry

by Guest on Jul 23, 2012 Real Estate 1390 Views

Many times an industry will use their slang terms in describing things within their industry. For this article, we will take a look at a couple of terms used within the real estate industry.

Other terms used frequently within the industry include the Comparative Market Analysis. Often referenced as a CMA, or Competitive Market Analysis, this term is referencing the way agents compare the home pricing. Homes used in the competitive market analysis, are typically found within three categories; sold, pending and active.

A Realtor takes into account these categories and a subject home to get a general market price for the subject home. All sold homes are usually viewed within a time frame of six months. These homes are typically from the same neighborhood the subject home is located in and with some comparable sizes and features. A more in depth competitive market analysis will include expired and withdrawn listings. Expired listings are those that have been on the market for a period of time and are no longer offered for sale. Withdrawn listings have been on the market for a period of time, but the seller has decided not to sell them for one reason or another.

The time on market is another item considered in the competitive market analysis. The time on market is often seen under the term DOM, this simply means Days on Market. As far as the competitive market analysis is concerned, the days on market is a helpful indicator as to what price and condition helps a home get purchased quickly. Knowing the market time can help a seller either to play the market a bit, with overpricing or can determine an aggressive pricing strategy to turn a listed home into a sold home-seller’s choice.

Both the buyer’s agent and the listing agent use the competitive market analysis for different but similar reasons. The buyer’s agent uses the CMA to ascertain the fair market price of a home. They do this for their client, for two reasons. One of the reasons is to make sure the home is not priced out of line, and the other is to help put together an offer to purchase with their client. The competitive market analysis is a guideline. The seller and the buyer ultimately make the decision on the selling price of the subject home.

For the listing agent, it is to place the subject home on the market with a competitive price. A price that will get plenty of buyers in the door to look at the home, and ultimately a price that will attract an offer to purchase, one that a seller has a bit of negotiating room to work with.

Slang terms in the foreclosure department include short sales, REO’s and bank owned property. An REO is real estate owned by the bank. A foreclosure is a property that was taken back by the mortgage company that holds the loan on it. Bank owned property is simple that. A short sale is where the seller and the mortgage holder have made an agreement that if the seller can find a buyer; the mortgage holder will consider negotiating with the offer presented to them. Short sales are the oxymoron of the industry as these types of transactions take longer than any other.

And RELO, another fine term in the real estate industry. This term refers to those individuals working with relocation companies. These companies help to offset a relocating employee. Relocation in itself is just moving typically from one city or state to another.

Article source: http://www.appraisalarticles.com/Real-Estate/3488-Real-Estate-and-the-Lingo-Within-the-Real-Estate-Industry.html

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