If you’re diving into the real estate market for the first time, then you’ve probably realized there’s a bit of a learning curve. When researching homes and mortgages you may have come across some terms that are unfamiliar to you. Acronyms are especially popular in real estate, and it’s helpful to know what all these abbreviations stand for. Here are 10 of the most common real estate acronyms that you’re likely to come across when you’re buying or selling a home.
DOM stands for “days on market” and we use this term to describe the number of days from when a property hits the market to when it goes under contract.
Stands for “certificate of occupancy”. In NJ, a seller must provide this to the buyer. Municipalities inspect properties to issue COs so that they are in compliance with local habitability and fire codes.
A popular type of loan is an FHA loan. FHA stands for the Federal Housing Administration, which has a program that guarantees loans for buyers who qualify. They typically require very low down payments and are great for first-time buyers.
VA loans are another common type of home loan. They are guaranteed by the Veterans Administration and are available to those who have served in the military. One great benefit of VA loans is that they require no down payment at all.
Are you preparing to sell your home? Then you’ll probably want to get a CMA from a real estate agent. This stands for Certified Market Analysis, and it is a comprehensive report that helps to determine the value of your home. Finding just the right asking price for your home is a crucial step when selling.
When you search listings, you may come across the acronym FSBO. This means the home is For Sale By Owner. If you want to purchase a home that is FSBO, then be aware that the seller will not be working with a professional real estate agent and you or your agent will be dealing with them directly.
MLS stand for Multiple Listing Service. This is the collection of all the homes that are for sale at any given time. When you put your home up for sale your agent will list it in the MLS. If you’re looking for a home, your agent will search the MLS for properties that fulfill your needs.
Are you in the market for an investment property, or are you thinking about how much your home will be worth down the line? Then you’re considering the home’s ROI – return on investment. The ROI represents how much you stand to profit over your original investment.
Another term you’ll probably encounter when applying for a mortgage is DTI, or debt-to-income ratio. This is the percentage of your monthly income that goes toward paying your debts. The smaller your DTI, the better.
Finally, if you’re playing less that 20% of the purchase price for your down payment, then you’ll probably be paying PMI, or private mortgage insurance. This is a fee that covers your lender in case you default on your loan.
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, NJ. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair and West Orange, NJ and the surrounding towns. We are driven by earning great testimonials and referral business from happy clients. You can read our testimonials at www.azhomesnj.com/testimonials.