#PRINCIPAL DEFINITION REAL ESTATE PROFESSIONAL#

Conventional saleДЄ conventional sale is when the property is owned outright (has no mortgage remaining) or the owner owes less on their mortgage than what the market indicates the owner could sell their property for. It may also include monthly and/or annual fees or special assessments. Usually, these are the rules and regulations placed on real property by a homeownerвЂ™s association (HOA), a neighborhood association, a developer, or a builder that sets forth any requirements and limitations of what a homeowner is allowed to do with the property. Covenants, conditions & restrictions (CC&Rs) Learn more in our post вЂњ Who pays real estate agent commission feesвЂќ. This agent is a fiduciary for the seller.Д«uyer and listing agent commissions are each typically 2-3% of the contract price in each sale.

#PRINCIPAL DEFINITION REAL ESTATE PROFESSIONAL#

The listing agent, also known as the sellerвЂ™s agent, is a licensed real estate professional whose job is to market the sellerвЂ™s property, and to represent the sellerвЂ™s best interest by negotiating on behalf of the seller to secure the best price and selling scenario as possible. BuyerвЂ™s agent/listing agentДЄ buyerвЂ™s agent, also known as a selling agent, is a licensed real estate professional whose job is to locate a buyerвЂ™s next property, represent their interests by negotiating on behalf of that buyer to obtain the best price and purchasing scenario for that buyer as possible. It is most commonly used in a highly competitive area and/or circumstance, and used as an attempt to be first and win quickly. When a buyer makes an offer on a property they havenвЂ™t seen, even when it was possible to see it, that offer is considered a вЂњblind offerвЂќ. There can only be one backup offer legally, as you cannot have a backup to the backup. A backup offer must still be negotiated and any monies, such as earnest money, submitted, to confirm it is the next offer in line. When a buyer is interested in purchasing a property that is already under contract with someone else, that buyer has an opportunity to submit a вЂњbackup offerвЂќ, in case the first transaction falls apart. Or in the alternative, the seller should release the buyer from their obligation to purchase and refund the monies spent by the buyer, such as earnest money. It could also mean that it is priced вЂњas isвЂќ, which is typically lower than market pricing in the area.ДЇinally, вЂњas isвЂќ is in the condition at the time the offer was written, and should something happen to the property from the time the offer was written to the closing time which alters that condition, then that property is no longer вЂњas isвЂќ, as it was, and should be brought back to its original вЂњas isвЂќ condition at the time of offer, at the cost of seller. As-isДЄ property marketed in вЂњas isвЂќ condition usually indicates that the seller is unwilling to perform most if not all repairs. Lenders want to ensure they are not вЂњover-payingвЂќ for a property.

Appraisal contingencyДЄn appraisal contingency is a clause that allows a buyer to dissolve a purchase agreement if a homeвЂ™s appraised value is less than the sale price.ДЄn appraiser hired by the buyerвЂ™s lender evaluates the value of the home to ensure that the loan is secured by an appropriate home value. This helps the lender decide if the property is worth the amount of the loan the potential buyer is seeking.

During the home sale, the mortgage lender sends out an appraiser to get a professional opinion of the value of the property. AppraisalДЄn appraisal is required to gather the estimated value of a piece of real estate. This loan type is less predictable than a traditional fixed-rate mortgage, but it can potentially yield lower interest rates during certain periods. With ARM loans, interest rates can change after an initial fixed rate period as they adjust based on the interest rate index the ARM is tied to (e.g., LIBOR, COFI, etc.). в†’ Get a competitive offer and choose your close date. в†’ See how OpendoorвЂ™s costs compare to a traditional home sale. Natural hazards disclosure (NHD) report.в†’ Search our listings for your ideal home. в†’ Learn the fundamentals of local real estate trends.

Principal definition real estate