Sometimes when it comes to buying a home, you feel like you are in the middle of alphabet soup!  There are multiple acronyms in the real estate industry that are beneficial to help communicate the matters at hand.  But what if you don’t know what the acronym means?  Don’t worry, we are here to help.

First of all, before I start my list, I would like to stress that it is completely acceptable, as well as good practice, to speak up and ask if you don’t understand what is being communicated to you.  Realtors are in the business to help you with your home buying or selling process.  It is our job to make a smooth transaction, as well as make sure you fully understand the terminology.

To give you a little head-start, below are some of the common real estate acronyms and their meaning.

• APR – Annual Percentage Rate: Annual cost of borrowing money based on the loan amount, interest rate, and certain other fees.
• ABR – Accredited Buyer Representative: A certificate of National Association of Realtors for buyer representation
• CD – Closing Disclosure: This five-page document spells out all the terms of the loan: the amount, the interest rate, the monthly payment, mortgage insurance, the monthly escrow amount and all closing costs.  It is given to the buyer three days before closing.
• CMA – Comparative Market Analysis: Comparative market analysis is the process of determining an investment property’s value by comparing it to other properties similar in size, amenities, etc. Comparative market analysis takes both the property itself into consideration, as well as the market in general.
• DTI – Debt-to-Income: Percentage of your monthly income that goes toward your monthly debt payments.
• FHA – Federal Housing Administration: A government agency created by the National Housing Act of 1934 that insures loans made by private lenders.
• FRM – Fixed-Rate Mortgage: Interest rate that does not change during the entire term of your loan.
• FSBO – For Sale by Owner: Properties that are not listed on the MLS.
• HOA – Homeowners Association: The governing body of a housing development, condo or townhome complex that sets rules and regulations and charges dues and special assessments used to maintain common areas and cover unexpected expenses respectively.
• LTV – Loan-to-Value Ratio: The amount of the loan divided by the price of the house. Lenders reward lower LTV ratios.
• MLS – Multiple Listing Service: A database where real estate agents list properties for sale.
• PMI – Private Mortgage Insurance: Insurance that protects lenders from losses if a homeowner is unable to pay their mortgage.  It is required for homebuyers who make down payments less than 20% of the home purchase price.
• P & I – Principal and Interest: Principal and interest are the portions of your monthly mortgage payment that go toward paying off the money you borrowed to buy your home.

If you ever have questions about the lingo of the real estate industry, I would be happy to help!  Give me a call at 928-458-9815 or dbaum1956@gmail.com.

There are thousands of licensed real estate agents, but of those licensed, how many are dedicated professionals? Many can make a good first impression, but to truly represent your needs, they’ll need to be able to make good on the promises only pros can make. One way to separate the pros from the merely qualified is to ask them if they’re willing to make some promises about how they conduct their business. Here’s what any great agent should be able to say from day one:

1. “I promise to keep you in the loop and the lines of communication open.” Communication is fundamental to a working relationship, and a great agent knows that a buyer or seller may have questions and concerns which need addressing as soon as possible. You should never feel your agent is missing in action.
2. “I promise you this is my full-time career.” Those with experience in real estate have graduated from the part-timer’s realm to the ability to support themselves with their income in real estate. Realtors are pros when they go full-time.
3. “I promise to be open to work with the people you want to work with.” A true professional is open to working with the lenders, insurance brokers, inspectors, and other companies you feel most comfortable with. Pros may recommend those who they know and trust, but a great agent will never confine you to their personal network of cronies. They’ll also let you know if someone you recommend may not meet their professional standards.
4. “I promise to give you honest advice.” A professional real estate agent is engaged, concerned, and will tell give you the best counsel when it comes to serving your needs. Sometimes, this advice may not be easy to hear, especially when it comes to pricing, budget, or repairs. An agent who doesn’t give advice may well be checked-out and giving you less-than-ideal representation.
5. “I promise a professional attitude across the board.” Honesty from your agent doesn’t mean abuse, neglect, name calling, or undue pressure to see things their way. In every interaction you should feel your agent walks, talks, and projects the image of a competent professional. Stress is part of real estate. The stakes are high and emotions are always just beneath the surface. A pro agent will have the fortitude and discipline to maintain a professional demeanor under fire.

What is my specific promise to you? As a professional REALTOR®, my primary focus is customer service and satisfaction. I am motivated to excel and serve all my clients with honesty and enthusiasm.  My role as your Realtor is to provide the finest service while utilizing my strong negotiating skills. Each step of your real estate transaction will have my thorough and complete attention.

Give me the opportunity to make good on all these promises. Allow me the opportunity to listen to you, identify your real estate needs, and then assist you in realizing your real estate goals. My guarantee is your utmost satisfaction using my core principals of Honesty, Integrity, and Teamwork. Contact me today to learn more about how my definition of teamwork is the agent and the client, we will work together as a team to make a successful transaction.