I looked at a couple properties with a REALTOR® but I don’t believe I’m getting the service I require. There is a house I am really interested in, can I find a different agent and make an offer?
The first question to ask is do you have a Buyers Agency Agreement with the first REALTOR®? If you have signed a contract with that agent then you are obligated to work with them per the terms of the agreement. In the case that you have not committed to working with that agent through a Buyers Agency Agreement then you are free to use the services of another REALTOR®. If you violate the terms of the contract you could be liable to pay a commission to both agents.

I am interested in a property that is already listed with an agent, can I negotiate a lower price if I act as my own agent?
In most cases the buyers agent commission if already set into the listing contract, thus paid for by the seller. It does not cost you anything to have an agent represent you. Keep in mind also that you may not have sufficient knowledge to represent yourself. It is in your best interest to work with a trained and licensed professional.

What are closing costs?
Closing costs are the miscellaneous expenses buyers and sellers normally incur at settlement in the transfer of ownership of real property such as loan, title and appraisal fees.

What are discount points?
Discount points are an amount of money where 1 point equals 1 percent of the original principal loan amount which a borrower or a seller must pay to a lender in order to get a loan at a stated lower interest rate.

What is an appraisal?
An appraisal is an opinion of the value of a piece of real estate at a specific point in time (current market conditions) resulting from an analysis of the facts about that property by a qualified impartial third party. A lender will hire an appraiser to do an appraisal of a property to insure the loan amount does not exceed the value of the property.

What does FSBO mean?
FSBO is a shorted term used in the industry to refer to any property that is for sale by owner.

What is a broker?
The licensee responsible for the real estate company you are working with. All real estate offices have one principal broker.

What is a buyers agent?
A real estate agent who shows the buyer property, negotiates the contract or the offer for the buyer, and works with the buyer to close the transaction. The buyer’s agent is sometimes referred to as the selling agent.

What is a closing?
Closing refers to the end of a transaction process where the deed is delivered, documents are signed and the funds disbursed. It is also referred to as settlement.

What is a commitment letter?
A commitment letter is an official notification to a borrower which generally specifies the terms of the loan and a date for the closing by a lender of the intent to grant a loan.

What is a contingency?
A contingency is a provision in a contract requiring certain acts to be completed before the contract is binding. A contingency could be financing, inspection or house to sell. These contingencies must be met before the transaction can close.

What is a counteroffer?
A counteroffer is a response to an offer which acts as a rejection of the original offer and introduces a new offer or one with different terms and conditions.

What is a credit report?
A credit report includes all of the history for a borrower’s credit accounts, outstanding debts and payment timelines on past or current debts.

What is a down payment?
A down payment is the amount of cash put towards the purchase by the borrower. Typically it is a certain percentage of the purchase price and can be a term of the loan.

What is a foreclosure?
A foreclosure is a legal process whereby property pledged as security for a debt is sold to satisfy a debt in the event of a default in payments or terms.

What is a home warranty?
A home warranty is a type of insurance that covers repairs to certain parts of a house and some fixtures. A home warranty can be purchased by the seller at the time of listing or at closing per request of the buyer if written into the offer. A buyer may also obtain a home warranty at the time of purchase.

What is a Multiple Listing Service (MLS)?
A multiple listing service is a service combining all listings available in an area, except for For Sale By Owner properties, in one database. It is used by real estate agents to find properties based on a buyer’s request. It is also a great tool for sellers by providing listing agents a means to expose propertied to hundreds of agents and prospective buyers.

What is a sales contract?
A sales contract is a contract by which a buyer and a seller agree to the terms to the sale of real property.

What is a condition report?
A condition report is a form completed by the sellers to disclose any known defects of the home.

What is a survey?
A survey is a map prepared by an engineer or surveyor charting a particular piece of real estate to determine the quantity of land, location of improvements, and other information.

What is a title search?
A title search is the process of checking the public records and legal proceedings to disclose the current state of ownership of a real property.

What is an appraised value?
It is an opinion of a property’s fair market value, based on an appraiser’s inspection and analysis of the property. An appraised value is typically the amount that a given property will sell for. It is not to be confused with the assessed value.

What is an appreciation?
Appreciation is the increase in value of property over a time period.

What is an assessed value?
The public tax assessor value of a property as determined for the purpose of taxation. An assessed value may not be the same as the appraised value of a given property.

What is an inspection?
An inspection is an thorough examination of a home’s exterior, foundation, framing, plumbing, electrical, mechanicals, kitchens, baths, attics, roofs ect by a licensed professional.

What is commission?
A commission is a negotiable fee, usually a percentage of the sales price of a home, that is paid to the agents of the buyer and seller.

What is earnest money?
Earnest money is an advance deposit of part of the purchase price given to the seller or their agent by the potential buyer upon acceptance of offer to purchase as a sign of good faith. The earnest money given is deducted from the sale price at the time of closing.

What is equity?
Equity if referred to as the interest or value which an owner has in real property over and above what is still owed on it.

What is homeowners insurance?
Homeowners insurance is an insurance policy that combines personal liability insurance and hazard insurance coverage for a residence and its contents.

What is title insurance?
Title insurance is insurance against loss of damage resulting from defects or failure of title to a particular parcel of real property. It protects lenders ad homeowners against loss of their interest in property due to legal defects in title.

Who is a subagent?
A subagent is an agent who brings a buyer to a property; they in effect act as a subagent to the listing agent and are paid by the seller.