What does that mean?? Part#1.

Real Estate is a big market!  Lots to learn to be a REALTOR!   Lots of real estate agents graduate every day but only about 33% go on to sell real estate, why?  There is so much to learn, so you can earn, and there are many fees to pay to be a REALTOR.

Today I am sharing some terms to help new buyers and sellers understand REALTORS and terms!1.

Thank you to those who contributed to this article!   

If you are borrowing the money from a bank or mortgage company, you will need these 3 items her that the buyer pays for.

1. Appraisal - is the estimated value of a property.  Yes the county has an appraisal office and they do appraise your property but very seldom is it correct.   Cost vary.  Approximately $700.00.

2. Inspection - is a limited, non invasive, examination of the condition of a home, often in connection with the sale of that home. Inspectors must be licensed by TREC.  Cost vary.  Approximately $500.00.

3. Survey - if you are buying a home you should always order a NEW survey of what you are buying, this is where a professional surveyor comes out to your land/home/property  and finds the corners of your property.  You can also get a survey from the previous owners if there has been no additions to the property. Make sure it is a licensed surveyor.  Cost vary.  Maybe $800.00.

Comparative Market Analysis (CMA) - is a study of how comparable local homes have sold to help determine a reasonable price for a property close by.  If you are thinking about selling your home, I can do a CMA for you to see how much your home may be worth.

Mortgage - simply put is the home loan. You can go thru your local bank or a mortgage company.  I have come to realize that going thru an actual Mortgage Company goes much faster then going thru a local bank.  Each REALTOR has some mortgage companies they may recommend if you need one.

Rent - is what you pay to live in a home that belongs to someone who has a mortgage!  Lol!!

Prequalification Letter - is a letter you provide to your REALTOR from a mortgage company BEFORE they take you out to look a possible homes for you and your family.  The mortgage company will give you a pre-qual letter to take to your REALTOR so that together you all can figure out which homes to look at.  There is no sense looking at a home for $200K if your mortgage company tells you that you qualify for a home around $90K - $105K. Right?  It takes maybe 1 hour for you to get a pre-qual letter and it takes me, your REALTOR, days to find the right home for you and your family.

Preapproval Letter - is a little different than pre-qual letter.  When I represent a client and we make an offer on a home, I may send the pre-qual letter,  but occasionally the home owners want your Preapproval Letter at the time of your offer. It varies. Many times when you want to go see a home, the owner may want a copy of the Pre-Qual Letter before they make an appt. for a buyer to go and see the home. It depends on the sellers and listing agents.