MRSH Marsh In fact,44 percentof all buyersstart their search by looking at properties onthe internet., Butwith relatively new terms likeexpiredandpendingentering thelexicon,andunclearshorthandandacronymslittering listings, deciphering real estate lingo can be tricky., If youre tired of all the jargon, or just plain confused,hereare somerealestatetermsto knowsoyoucan kick off your home search without a hitch., Active:The property is currently on the market and available for sale., Active contingent:The home is under contract,meaning the seller has accepted an offer from a buyer.However,certain conditionsmust be metbeforethe sale is finalized, which are known as contingencies.Thesemight includethesellerneeding toreceivemortgage approvalorthebuyer and sellerneeding toreachan agreementabout anyrepairs afterahome inspectionis performed., Active with contract (AWC):While the propertyhas apurchase agreementpending on it, it is still availableand beingshown to other potential buyers. Disclaimer: ActiveRain, Inc. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. Det Detached Garage PITI Principal, Interest, Taxes and Insurance FSBO For Sale By Owner Have questions about buying, selling or renting during COVID-19? An origination fee is not a single fee. Dr -Dining Room FHA loans are different from conventional loans because they can be approved for borrowers with lower credit scores and may allow for down payments as low as 3.5 percent of the total loan amount. Each lending institution sets its own prime rate. You may want the retreat, but ask yourself if you're truly ready for all it entails. Bring vs. Take. The four items include, repairs, vacancy loss, property management, and miscellaneous. CATH Cathedral ceilings Click to reveal Press F to Pay Respects: What Does F Mean Online? Your IP: SFR Single Family Residence During this time, the home is inspected and appraised, and the title is searched for liens, etc. 2. Inspection occurs when the home is under contract or in escrow. A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home. But if you want to hang on to your cash and exercise some self-sufficiency, check out these clever products that solve a million and one little problems around the house. They charge dues used to maintain common areas. What Is a Short Sale? REC Recreation Room The property is sold and no longer available. Not all mortgages. D/D Dishwasher and a garbage disposal OWN Owner Financing Read, A clause or addendum to a real estate contract or offer that states a buyer is willing to raise his or her offer price to a predetermined amount if the seller receives a higher competing offer for the property. But unlike an AWC, the property is no longer available forshowings., Whileabbreviations and acronymsfor property descriptionsvary by listingand source,thetermsbelow canbe used as a general guide to help you translateanything unfamiliar.If youre still unclear whata shorthand is referring to,reach out to the listing agent., As-is:Theowner is selling the home in its current condition and willnot makeanyrepairs orcorrect any flaws with the property., OLREA:Owner is a licensed real estate agent. Market conditions that exist when buyers outnumber homes for sale. IRA Individual Retirement Account RAD Radiant Heat Certified Residential Specialist, a designation awarded by the Council of Residential Specialists. Read more about PMI here. Back Bay. The terms are frequently seen in advertising of bed & breakfast inns for sale: "turnkey," "mostly turnkey," "real estate only," "real estate and good will.". The Compensation is entered in the Compensation Code fields of BB (Buyer's Broker), SU (SubAgent), and/or TR (Transaction Coordinator). MTG Mortgage Home affordability takes into account your income, down payment, and monthly debts. GLF Golf Course It is only recommended to perform title, lien, and property record searches before you get too far we advise doing your due diligence. glossary of frequently-used mortgage terms, Read our stress-free guide to getting a mortgage, The Ultimate Real Estate Glossary for Homebuyers. The base rate is set by the Federal Reserve and then customized per borrower, based on credit score, down payment, property type and points the buyer pays to lower the rate. OO Owner Occupied Real estate agents and other real estate professionals often need to have specific certifications and may work with or belong to different associations or groups. Closing costs:All of themiscellaneous expenses paid by the buyer and the seller when the real estate deal closes. CFD Contract for Deed PRQ Parquet The CRS designation indicates a triple threat - on average, these agents have been in business three times longer, have three times the amount of transactions, and generate three times more sales revenue than the average . SHNG Shingle TIL Truth In Lending, A/G PL Above-ground Pool An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. What Does BB Mean, and How Do I Use It? WAR Warranty Plan Active This means that a property is currently on the market and available for sale. Keep an eye out for seriousmaintenance issues that may be disguised by quick surface repairs, and call in a trusted home inspector to help you spot any hidden problems. LTV Loan to Value Large E-2 plan:This is one of several floor plans available in a specific building. A thorough assessment of a borrowers income, assets and other data to determine a loan amount they would qualify for. A property was withdrawn from the realty market. CFan Ceiling Fan UTRM Utility Room The ratio compares total housing cost (principal, homeowners insurance, taxes and private mortgage insurance) to gross income. FSBO For Sale by Owner The meaning of REAL ESTATE is property in buildings and land. Bulk Bulkhead CHMS Certified Home Marketing Specialist WINDT Window Treatment WBFP Wood Burning Fireplace ELE Electric Performance & security by Cloudflare. BCH Beach Dollar (D): If a set dollar figure is offered instead of percentage, use the "D" to represent the dollar figure being offered as commission. WHF Whole House Fan O/F Owner Finance Our belief in better is at the core of everything that we do, every day. MLS multiple listing service Principal, interest, property taxes and homeowners insurance (PITI), A fee charged to borrowers who make a down payment that is less than 20% of the homes value. STR On Street Parking GRM Gross Rent Multiplier PICK Picket Fence This list of real estate investing abbreviations is useful for real estate brokers. If you have the money to hire a handyman for every household woe, go ahead. If you have made your required monthly payments, at the end of the loan term (e.g., 15 or 30 year mortgage), you will own your home. To meet client needs, to empower teammates, and to lift up communities. Smart mortgage shoppers apply for at least two loans and use the loan estimates to determine which lender they want to use. HOA Homeowners association VA Department of Veterans Affairs / Veterans Administration, AMORT Amortization Read, A ratio that compares a home buyers expenses to gross income. PRV, PVCY FENCE Privacy Fence VYL Vinyl This is the escrow period, when both buyer and seller are workingtoward a closing. LR Living room Farm Farmhouse The owners bank must approve a lower listing price before the home can be sold. Banks, savings and loans, and credit unions. Longterm care insurance is issued by Northwestern Long Term Care Insurance Company, Milwaukee, WI, (NLTC) a subsidiary of NM. MWV Microwave Oven PITI Principal, Interest, Taxes, and Insurance BA; BTH : Bathroom. OCN Ocean 2023 All Rights Reserved. Updated from an earlier version on realtor.com. CMA:Comparative market analysis or competitive market analysis. A prepayment penalty is a fee some lenders may charge if you pay off some or all of your mortgage early. OBO Or Best Offer 27. Cldsc Cul-de-sac ASM Assumptions Since we launched in 2006, our articles have been read billions of times. If you wish to report an issue or seek an accommodation, please let us know. A/G PL : Above-ground swimming pool. property in buildings and land; space, capacity See the full definition . MK Modern kitchen If your mortgage doesnt have an escrow account, you may pay the property-related expenses directly. Percentage (P): The first digit being the full percentage point and the second digit being the partial percentage (no decimal is used). NNN Triple Net Lease BD Bedroom LOI Letter of Intent APR Annual Percentage Rate RDR Radiator Most real estate agents use similar abbreviations as part ofreal estate lingo, so once you get the jist, you can read any listing with confidence. 4B/2B: Four bedrooms and two bathrooms. PMI Private Mortgage Insurance A house located in a quiet location may be slightly off the beaten trackor, it may be out-and-out secluded. Try, The governing body of a housing development, condo or townhome complex that sets rules and regulations. If its someone youre romantically interested in, you have to be in a relationship with them or in the process of courting them. These abbreviations are typically written in all capital letters. Listing:An agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owners home. Dry Clothes Dryer But if thats not what youre looking for, keep shopping. Lo dues:Low homeowners association dues. One of two debt-to-income ratios that a lender analyzes to determine a borrowers eligibility for a home loan. Fpgas Gas Fireplace Before you start calling someone BB, you might need to establish ground rules. RPAC Realtors Political Action Committee Mortgage insurance protects the lender if the borrower defaults on the mortgage loan. Buyers should budget for an amount that is 2% to 5% of the homes purchase price. Prospective purchasers of an inn need to know exactly what they mean. Learn, Private Mortgage Insurance or PMI, is a monthly mortgage insurance premium paid by a borrower for a mortgage insurance policy. Classifying property is in part about age but should also consider things like affordability, amenities, and livability. This is important, as identifying a property's class can predict how the asset might perform. OVER Oversized Garage CRT. When dealing with real estate, you might also need to know things like the abbreviations for all 50 states or even common measurement abbreviations. Crk Creek DOT Deed of Trust Exr Exercise Room A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home. FLR Floor Furnace Bedroom usually means a sleeping area with a window and a closetin some areas, laws define what a room needs to be called a bedroombut the definition varies in different places. L/O Lease Option A ratio that compares a home buyers expenses to gross income. The most credit-worthy customers (mainly large corporations), receive the best or lowest rate that the lender would offer any of its customers. COO or C of O Certificate of Occupancy A full bathroom is a room with a toilet, a sink and a bathtub. EMC Earnest money contract MLS - Multiple Listing Service; database of real estate for sale, Smart -a computer controls some electronic devices like heating, alarms, and lights, CCIM Certified Commercial Investment Member, PITI principal, interest, taxes and insurance, CCR conditions, covenants, and restrictions, ACRP - Association of Commercial Real Estate Professionals, CHMS Certified Home Marketing Specialist, CLHMS Certified Luxury Home Marketing Specialist, FDIC Federal Deposit Insurance Corporation, FEMA Federal Emergency Management Agency, FHLMC Freddie Mac (Federal Home Loan Mortgage Corporation), GNMA Ginnie Mae (Government National Mortgage Association), REALTOR Member of the National Association of Realtors. Individuals could include neighbors or other people who have a right of way. Tiny houses are a trend, for sure. MAO Maximum Allowable Offer Try our affordability calculator to see how much house you might be able to afford. LR Living Room There are five main categories of real estate. PVT Private JV Joint Venture The ratio compares the borrowers monthly debt payments to gross income. Look for this accreditation or something similar when shopping for a home inspector. A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home. The fascinating story behind . W/W CRPT Wall To Wall Carpet There are multiple reasons why homes become REO properties, the biggest one being that the home went into foreclosure. 1 /8. RELATED: How to Stream U.S. Sports for Free Online. FHA Federal Housing Administration BLT Built-in Col Colonial POA Power of Attorney C-fan Ceiling Fan EA exclusive agency The sale of a home by an owner who owes more on the home than its worth. Yes! MBA Master Bedroom w/Bath The New Outlook Is Opening Up to More People, Windows 11 Feature Updates Are Speeding Up, E-Win Champion Fabric Gaming Chair Review, Amazon Echo Dot With Clock (5th-gen) Review, Grelife 24in Oscillating Space Heater Review: Comfort and Functionality Combined, VCK Dual Filter Air Purifier Review: Affordable and Practical for Home or Office, LatticeWork Amber X Personal Cloud Storage Review: Backups Made Easy, Neat Bumblebee II Review: It's Good, It's Affordable, and It's Usually On Sale. A combination of loans bundled to avoid private mortgage insurance. The fee, 0.3% to 1.5% of the yearly loan amount, can be canceled in certain circumstances when the borrower reaches 20% equity. Foyr Foyer IGSP In-Ground Sprinkler The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. APPLS Appliances Clus Cluster Read our stress-free guide to getting a mortgage. A contingent statusmeans that the seller has accepted an offer and the home is under contract. Buying a Flipped House: Is It Right for You? These structures can be both above and under the ground. Related:7 Features That Define the New American Home. Zillow, Inc. holds real estate brokerage licenses in multiple states. Other internet-specific definitions for BB include bye-bye, a largely defunct acronym that was more common in the early days of the internet. Usually, the realtor's website will give a good description without the real estate abbreviations. Learn more about down payments here. Copyright 2022 Ann Arbor Area Board of REALTORS. Loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA). NOI Net Operating Income After all, custom upgrades (like any decor choice) reflect the taste of the previous owner, and may or may not be to your taste. A "default" occurs when a borrower does not make his or her mortgage loan payment and falls behind. Mortgage insurance is usually required on a conventional mortgage loan and the down payment is less than 20 percent of the sale price. SPC Drive parking spaces While any seller can entertainbackup offers as a precautionary measure as long as this is made clear in the contract, this term most often crops up with short sales, since they can often fall through, and it can be helpful if a secondbuyer is waiting in the wings. GRT RM Great room There are many abbreviations used in real estate, but the following list includes the more common ones youve probably heard before. An account required by a lender and funded by a buyers mortgage payment to pay the buyers homeowners insurance and property taxes. You can also use BB as a platonic but affectionate nickname for a friend, especially if you have a strong and established friendship. Read more about back-end ratio here. 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