Real estate conversations and transactions are filled with lots of acronyms and unique terms that aren’t part of our everyday vernacular. You’ve probably read real estate ads that use some of the above acronyms and wondered what it all meant. Now, with new and different business models appearing, there are even more terms that can be confusing to the average consumer. Here we give you a quick rundown on some of the more common ones you may be hearing.
A/O – An Accepted or Acceptable Offer. This is a non-binding agreement indicating a meeting of the minds between parties to a real estate transaction. It is a pre-cursor to a binding contract.
Appraisal – An estimate of a property’s value done by a trained independent appraiser to provide an unbiased valuation. Appraisals may be ordered by a bank to determine the value of the collateral for their loan or may be legally required for property that’s part of an estate or settlement between parties.
AVM – Automated Valuation Model. This is typically an online tool that uses the basic information about a property and an algorithm to estimate a home’s value. It is often given as a range rather than a specific price, since the AVM tool could be missing significant details that affect value. It often includes a disclaimer about how accurate the AVM price is.
iBuyer – This is a relatively new business model and is short for Internet Buyer. iBuyer companies will offer to buy homes directly from sellers, closing on a date of the seller’s choosing, make any needed repairs, and then resell the homes to end users. The model intends to eliminate the uncertainty of timing as well as the need for the seller to show the home, negotiate or make any repairs. The fees associated with these sales can often be much higher than standard broker commissions, and the purchase price offered by the iBuyer company is typically below what the seller could obtain selling by traditional means.
CO – Certificate of Occupancy. This is a document issued by a municipal authority stating that a building complies with construction, health, and safety codes and may be occupied.
Agent – This term is often used to reference a licensed real estate professional. Agents may be licensed salespersons, brokers or associate brokers. An agent may be representing the buyer (buyer’s agent), the seller (seller’s agent) or both parties (dual agent).
CMA – Comparative Market Analysis. This is a data-driven comparison of similar properties used to establish the fair market value of a property, typically generated by a real estate licensee.
MLS – Multiple Listing Service. An MLS is a database used to distribute information about properties that are available for sale, in contract, or sold in specific geographic areas. It is the most common means of marketing a home for sale to cooperating real estate professionals.
And let’s not forget where we started: EIK – Eat-in kitchen. SGD – Sliding glass door. MBR – Master bedroom.
For further explanation of any of these terms or others that you may come across, feel free to contact any of our friendly, knowledgeable, local real estate professionals at ERA Insite Realty in Pleasantville, White Plains, Bronxville or Yonkers, visit our site at www.erainsiterealty.com or email us at firstname.lastname@example.org.