Glossary Posts

Where Does The Commission Go When I Sell?

First Time Buyers

In metro Phoenix where I work, sellers typically pay the Realtors’ commissions. Buyers don’t pay any Realtor commissions. The biggest chunk of change buyers come up with is their down payment. For sellers, the biggest hit you take on closing day is the Realtors’ commissions. Comissions are negotiable. So not every scenario will fit this one [...]

25 July 2008 Read the full article →

What Is “Absorption Rate”?

First Time Buyers

“Absorption rates are a  calculation of how long it will take for all the homes on the market to be sold, or absorbed, based on how many homes are on the market and how many were purchased in the last 30 days.”  – This is courtesy of blogging legend Theresa Boardman from Minnesota. Think of it [...]

5 June 2008 Read the full article →

Glossary of Real Estate Terms

First Time Buyers

When doing research, analysis, and reporting of our local real estate market conditions, I tend to use the same terms and phrases over and over again. I’m pretty sure that I’ve defined each of these terms at one point or another along the way, but that may have been many posts ago, and it’s very [...]

23 May 2008 Read the full article →

Mortgage Terms Defined

Buyer Help

Thinking about buying a home? Have questions, need info, but aren’t ready to speak with a lender yet? Have a fear that a pushy salesperson will bug you till you sign? See this awesome glossary of mortgage terms compiled by Jack M. Guttentag. Jack is Professor of Finance Emeritus at the Wharton School of the University [...]

5 May 2008 Read the full article →

Fair Housing Law

First Time Buyers

. . Federal Fair Housing law prohibits discrimination in the sale, rental or financing of housing because of: Race or Color National Origin (the country in which one was born) Religion Sex Familial Status (whether one has children or not, whether married or not) Handicap/Disability Some states include additional groups, such as “sexual orientation”. You [...]

22 March 2008 Read the full article →

All About PMI

First Time Buyers

Private Mortgage Insurance is just what it sounds like – insurance. It’s required on home loans where the buyer puts less than 20% cash down. Statistically, buyers with less than 20% cash down payment are more likely to default on their home loans than those who have ready cash.  Issued by private companies like MGCI [...]

17 February 2008 Read the full article →

80/20 and 80/15/5 Loans

Buyer Help

These were home loans that were essentially creative ways to get around the rule that you must pay Private Mortgage Insurance if you put less than 20% cash down on a home purchase. They were the darlings of the market in the late 90’s and early 2000’s. Lenders issued the buyer two loans. Loan #1 was [...]

17 February 2008 Read the full article →

ADRE introduces Consumer Bill of Rights

Buyer Help

“Your home is your biggest investment.” Haven’t we all heard that before? And it’s true, for most people. We’re talking about an asset that is generally worth several years’ salary. The price of a mistake, or a bad decision, could have serious consequences. Here are some things to consider as you start down the road [...]

15 February 2008 Read the full article →

Due Diligence Period

Buyer Help

The Due Diligence Period in a home purchase contract is the time during which the buyer conducts any and all inspections of the home that she/he chooses. The Due Diligence used to be called the Inspection Period. Many agents and home buyers/sellers still call it that. The AAR changed the terminology to Due Diligence when they [...]

27 December 2007 Read the full article →

Earnest Money

Buyer Help

A really common question I’m asked by buyer clients (especially first time buyers) is, “How much earnest money is the right amount?” Technically, I’m not supposed to tell you. At least that’s what I remember from my rookie training classes. If I’m remembering correctly, I think this was a rule dreamed up by the legal [...]

20 December 2007 Read the full article →

Scraper

First Time Buyers

Generally, a scraper is another term for a total tear-down. These homes are often 40+ years old (in metro Phoenix), and require a complete gut-and-remodel to bring them up to contemporary livability standards. Scrapers are usually built on an old floorplan model and have a formal dining room and living room, low ceilings, and a generally [...]

12 December 2007 Read the full article →

← Previous Entries

Next Entries →