Every year hundreds of people join the ranks of Realtors across the country. These people may or may not find success in the real estate agency.
While this job can result in a lot of profit, it can also be a lot of hard work. Similar to any other industry, the world of real estate has its own list of vocabulary words.
It is important that new real estate agents spend time learning these new vocabulary words as soon as possible. Once the agents learn these words, they can learn the tricks of the trade much faster.
One of the first terms that a new agent will need to be familiar with is back on the market or BOM. Back on the market is when a property or listing is re-posted on the market after being taken off for a short period of time.
This can occur for a variety of reasons. For example, the seller may decide he does not want to sell after all and a short time later he may decide he needs to.
It is also a good idea to be familiar with the term back-up agent. A back-up agent is licensed to work with clients when their own Realtor cannot meet with them.
Back-up agents are like a substitute teacher. They step in when an agent is on vacation, has fallen ill, or cannot work for other reasons.
You should also be familiar with the phrase balloon mortgage. A balloon mortgage is a special kind of mortgage that is paid in a short amount of time.
However, the mortgage is still amortized over a long period of time. For this kind of mortgage, the borrower usually makes payments that cover both the principal and the interest.
When the term ends, the borrower must repay everything that has not been previously paid for. This kind of mortgage is used on occasion.
Sometimes a first offer on a property will fall through due to various reasons. When this occurs, the seller will often accept the second best offer, or the backup offer.
Another term you will want to become familiar with is the bill of sale. The bill of sale refers to when the property title is transferred to the buyer during a transaction.
As you work in the real estate agency, you will also need to work closely with brokers. Brokers are licensed by the state to act as an agent for a seller or buyer.
On occasion, you will also work with a broker or record. A broker of record is a person who also is licensed by the state as a broker, but this broker is also licensed to be a managing broker of a real estate office.
As you work with brokers, you will come across the use of the term broker’s market analysis or BMA. The broker’s market analysis is a broker’s opinion on how much a property is worth.
Brokers often arrange times during which real estate agents can meet with them to view the listings in the brokerage market. These meetings are known as the broker’s tour.
You are probably already familiar with the term buyer. However, a buyer is the person who pays money to obtain ownership of a property.
The agency who works with the buyer is known as the buyer agency. The buyer agency typically has a fiduciary duty to the buyer.
The specific agent who works with the buyer is known as the buyer agent. This agent often takes an active role in forming offers fort the buyer and negotiating the terms of the contract to the liking of the buyer.
Another term you will need to become familiar with is the carrying costs. The carrying costs include all of the costs it takes to maintain a property.
The carrying cost includes taxes, interest, insurance, utilities and so forth. These costs will be of interest to potential buyers.
The part of real estate that every Realtor looks forward to is the closing. The closing is when the offers have been made and one accepted, the terms have been drawn up, the documents are signed, money is transferred, and the title is transferred.
When this occurs the deal is done and both the seller and the buyer are happy with the outcome. In addition, the Realtor often gets paid.
Another term you will want to become familiar with is the competitive market analysis or CMA. This analysis provides information about the market to the seller.
This information also helps the broker to establish a listing for the seller. By learning these terms, you can become an adept real estate agent much faster.
Ignacio Lopez has worked as a travel agent for the last 14 years and written hundreds of articles about mortgages. He recommends (http://www.parksedgeparkcity.com) for a home and other housing related services.
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