Real estate negotiations Flashcards
list or “asking” price
The first indicator of what a home may be worth
state equalized value (SEV)
second indicator of what a home may be worth taxable value of the home and property
amount you will need to finance
The difference between the purchase price and the amount of your down payment
Adjustable rate mortgages (ARM)
Type of financing available through banks and other financial institutions for residential property at a variable interest rate.
VA mortgages
Type of financing available through the Veterans Administration
FHA mortgages
Type of financing for residential property available through the Federal Housing Administration.
Conventional financing
type of financing available through banks and other financial institutions for residential property at a fixed interest rate, is for a predetermined number of years, often thirty
Seller-financed
The seller is loaning you the money (and assuming the risk) for the home.
FICO score
Most commonly used measure of one’s credit.
Private mortgage insurance (PMI)
Insurance that pays off the mortgage in the event the buyers aren’t able to do so.
Piggyback mortgage
A second mortgage, which closes simultaneously with the first, for the difference between the purchase price and the first mortgage plus the
down payment.
types of real estate listing contracts
exclusive-right-to-sell listing
exclusive agency contract
open listing
exclusive-right-to-sell listing
most common
Under this type of contract, the real estate agent is entitled to a commission if the property is sold during the life of the contract.
exclusive agency contract
less common
the seller agrees that a particular broker is the only one who can sell the property.
open listing
least common
allows the seller to contract with multiple realtors and pay a commission only to the one who actually sells the home.
