Like many industries, real estate offers many of its own unique and varied terms and phrases.

Turn those terms into acronyms, and what you have is little more than alphabet soup to those new to buying, selling, or investing in real estate.

Below are some of the more common real estate acronyms and their meaning, as defined by NAR (National Association of Realtors).

A/I (Attorney/Inspection): A contract that is pending with attorney and inspection contingencies.

ARM (Adjustable Rate Mortgage): A type of mortgage loan whose rate is tied to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.

APR (Annual Percentage Rate): The total costs (interest rate, closing costs, fees, and so on) that are part of a borrower’s loan, expressed as a percentage rate of interest. The total costs are amortized over the term of the loan.

AP (Appraised Price): The price the third-party relocation company offers (under most contracts) the seller for his or her property. Generally, the average of two or more independent appraisals.

BOM (Back On the Market): When a property or listing is place back on the market after being removed from the market recently.

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BMA (Broker’s Market Analysis): The real estate broker’s opinion of the expected final net sale price, determined after acquisition of the property by the third-party company.

BPO (Broker’s Price Opinion): The real estate broker’s opinion of the expected final net sales price, determined prior to the acquisition of the property.

CMA (Comparative Market Analysis): The analysis used to provide market information to the seller and assist the real estate broker in securing the listing.

DHSC (Direct Home Selling Costs): Carrying costs, loss on sale, repairs and improvements, commission, closing costs, principal, interest, taxes and insurance, interest on equity loans, and utilities.

DOM (Days On the Market): A measurement of how long a listing has been on the market.

FHA (Federal Housing Administration): A branch of the U.S. Department of Housing and Urban Development. An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan which is provided by an FHA-approved lender.

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FSBO (For Sale By Owner): A property that is for sale by the owner of the property.

HUD (Housing and Urban Development): A federal agency responsible for the national policy and programs that address America’s housing needs, that improve and develop the nation’s communities, and enforce fair housing laws.

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HUD/RESPA (Housing and Urban Development/Real Estate Settlement Procedures Act): A document and statement that details all the monies paid out and received at a property real estate closing.

IDX (Internet Data Exchange): Allows real estate brokers to advertise each other’s listings posted to listing databases, such as the multiple listing service.

MLS (Multiple Listing Service): A service that compiles available properties for sale by member brokers.

PUD (Planned Unit Development): Mixed-use development that sets aside areas for residential use, commercial use, and public areas – such as schools, parks, and so on.

PITI (Principal Interest Taxes and Insurance): The four parts that make up a borrower’s monthly mortgage payment.

PMI (Private Mortgage Insurance): A special insurance paid by a borrower in monthly installments, typically of loans more than 80 percent of the value of the property.

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R & I (Repair and Improvement): Estimated and actual repair and improvement costs.

TOM (Temporarily Off Market): A listed property that is taken off the market due to illness, travel, repairs, and so on.

VA (Veteran’s Affairs): A VA Loan Guarantee is a guarantee on a mortgage amount backed by the US Department of Veteran’s Affairs.


By Melissa Rolland – Courant Community

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