REAL ESTATE – Acronyms and Terminology

Acronyms:

1. MLS – Multiple Listing Service
   A database used by real estate agents to share property listings.

2. FSBO – For Sale By Owner
   A property being sold directly by the owner without a real estate agent.

3. HOA – Homeowners Association
   An organization in a subdivision or condominium that enforces rules and collects fees for maintenance.

4. REALTOR® – Member of the National Association of REALTORS®
   A licensed real estate professional who is a member of the NAR and adheres to its ethical code.

5. CMA – Comparative Market Analysis
   A report that compares a property to similar recently sold properties to determine a competitive listing price.

6. PITI – Principal, Interest, Taxes, and Insurance
   The components of a monthly mortgage payment.

7. EMD – Earnest Money Deposit
   A deposit made to show a buyer’s serious intent to purchase.

8. PMI – Private Mortgage Insurance
   Insurance required if a borrower puts down less than 20% on a conventional loan.

9. LTV – Loan-to-Value Ratio
   The ratio of the loan amount to the appraised value of the property.

10. DTI – Debt-to-Income Ratio
    A measure used by lenders to determine a borrower’s ability to manage monthly payments.

11. ARV – After Repair Value
    An estimate of a property’s value after renovations, commonly used in house flipping.

12. ROI – Return on Investment
    A measure of the profitability of an investment property.

13. CAP Rate – Capitalization Rate
    A formula used to evaluate the return on a rental property investment.

14. NOI – Net Operating Income
    The income from a property after operating expenses are deducted, not including mortgage costs.

15. BPO – Broker Price Opinion
    An estimate of property value prepared by a licensed real estate broker.

Terminology:

1. Escrow
   A neutral third party holds funds during a transaction until all conditions are met.

2. Appraisal
   A professional assessment of a property’s market value.

3. Title
   Legal ownership of a property.

4. Deed
   The legal document that transfers property ownership.

5. Contingency
   A condition in a contract that must be met before the sale can proceed.

6. Closing
   The final step in a real estate transaction where ownership transfers to the buyer.

7. Short Sale
   A property sold for less than the amount owed on the mortgage with lender approval.

8. Foreclosure
   A legal process where a lender takes control of a property due to missed payments.

9. Equity
   The difference between the market value of a property and what is owed on it.

10. Dual Agency
    When one agent represents both the buyer and the seller in a transaction.

AFFILIATE DISCLOSURE: The links on this website are my personal affiliate links and I will earn commissions from the purchases made from these links. This is how I earn money on the internet as a Wealthy Affiliate. (and you can too) 

JOIN MyWealthyAffiliateTeam.com (no fee, it's free) and we can collaborate for mutual success!

Together We Accomplish More!