The real estate industry is filled with a myriad of terms and acronyms for things that you have probably never heard of and wouldn't be expected to know. That said, getting to know the lingo is a great way to become more comfortable when talking about the market with your real estate agent and reading the listings descriptions of homes for sale.
Here are some of the most common terms, acronyms, and expressions you'll come across during your home purchase or sale.
Common Real Estate Terms & Acronyms
CMA: Comparative Market Analysis
A CMA, or Comparative Market Analysis is a report that's assembled by your agent to show what your home could be worth based on comparable properties. Typically, this report takes into consideration the size of your home, bed and bathroom count, recently sold properties nearby, current homes for sale nearby, among some other details.
Closing costs are all of the expenses outside of the purchase price that are paid by the buyer and seller during the transaction. These can include agent commissions, mortgage-related fees, transfer taxes, escrow, title insurance, and so on. Every market is a little different, so check with your agent to see how much closing costs are in Colorado Springs.
FSBO: For Sale By Owner
The owners of the home have opted to work without a real estate agent, so you're dealing with the seller directly rather than having their agent facilitate everything on their behalf. That said, as a buyer you should still work with a real estate agent as they'll keep your best interests in mind and ensure that nothing gets skipped.
A contingency is an provision of an agreement that the binding contract hinges on. Essentially, it's a condition that's agreed upon by both parties during the closing process that must be met in order for the contact remain legally binding. If a condition, otherwise known as a contingency, is not met, the offer on the home may become void. Examples of a contingency include a home inspection, mortgage approval, the sale of the buyer's current home, among many others.
MLS® or Multiple Listing Service®
MLS® is an organization that compiles and distributes all of the listings of real estate brokers belonging to a certain real estate board. Not just anyone can list their home on the MLS®, it's exclusively available to registered real estate brokers who belong to that organization. Our website uses an MLS® feed to help you find all of the available listings in Colorado Springs, for instance.
How a Real Estate Agent Helps Buyers and Sellers Navigate the Confusion of Real Estate Transactions
Real estate professionals are specially trained to read home purchase contract language. Home purchase agreements are confusing for home buyers. Those who work without a real estate professional may not be familiar with terms like disclosures, contingencies and closing costs.
While it's possible to get through a real estate transaction without using a real estate professional, it's not usually advised. Working with a real estate professional takes the mystery out of reading home purchase agreements. A good real estate professional can interpret the information in the agreement, and help the home buyer make strategic decisions based on what the home purchase agreement states.
Buy Homes In Colorado Springs With Confidence
At no point should you ever feel daunted by words or terminology when it comes to buying a home. If you ever aren't sure of something and would like clarification, just let your agent know and they'll be happy to break it down for you.
For all of your homebuying needs, trust the MilitaryHomeSearch.com team! They'll work with you to develop a personalized buying portfolio, let you know about the ins and outs of the Colorado Springs real estate market, and facilitate the buying process from start to finish. Send them a message or give them a call at 719-338-7294 to learn more today!
Lauren Schneider, Real Estate Agent and Military Relocation Professional (MRP)
Lauren Schneider has lived in Colorado Springs for nearly 20 years and knows that the military is what keeps this town ticking, which is one of the reasons she's chosen to pursue her dream of helping military families with all of their homebuying needs. Learn more about Lauren or start your home search now.