Supreme Court nixes foreclosure mediation

TALLAHASSEE, Fla. – Dec. 20, 2011 – Florida courts will no longer require mandatory foreclosure mediation program after Florida Supreme Court Chief Justice Charles Canady closed down the two-year-old program yesterday.

The program, established in 2009 and modified in 2010, was created to ease pressure on the court system and speed up the foreclosure process. However, Canady said reports suggest it didn’t work as well as hoped, and the courts could no longer justify the system.

According to some homeowners facing foreclosure, lenders did not take the process seriously.

Foreclosures already in the mediation process will continue on that path as they work their way through the system. New foreclosure cases, however, will not be referred to mediation.

Leading U. S. economists: Fla.’s housing market bouncing back

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Why Work with a Realtor - Active Adult Community- New construction

Most prospective buyers do not know the answer to this and we need to get the word out. Finding the perfect retirement community is a process and the more knowledge you have the better your experience will be.

It is my experience, most prospective buyers are not aware of their options to work with a Realtor when purchasing a new home in an active adult community (55+) They assume they have to work directly with a new home consultant who works for the builder. The new home consultant is going to get the highest price and best terms for the builder.

 

It is in the best interest for the buyer to work with an independent Realtor instead of dealing directly with the builder without an agent. An experienced agent knows the area and is able to keep up with the builder’s and their competitor's latest incentives. They are familiar with the purchase agreements and can help you understand what you are signing. Also, they can represent you if you are an out of town buyer and help you through the process. There is no out of pocket expense for the prospective buyer because the builder pays the commissions.

 

If you are in the market for new construction it is something that would be wise to consider.

Laurie Scherer
888-300-4431

3 Tips for Selling Your Home

Rate on 30-year mortgage below 4% for second time

Read the entire article here

WASHINGTON – Nov. 11, 2011 – The average rate on the 30-year fixed mortgage fell below 4 percent for just the second time in history.

Nov. 2011 Real Estate Market Update

This Months Real Estate Market Update

LEXINGTON LAKES, Boynton Beach FL. Home for Sale Just Reduced!!!

Veteran's Day

On Veteran's Day, we pay tribute to the men and women who have worn the uniform of the United States Armed Forces. We are grateful for their acts of bravery; serving selflessly and preserving our freedom.

They have truly shown the heights to which Americans can rise when asked and inspired to do so and we can all learn something from their courage.

I hope you will take a moment today to commemorate the patriots who have risked their lives to preserve our Nation, the families who support them, and the heroes who are no longer with us.

Selling Your Home - Pricing the House to Sell

What is the difference between list and sales prices?
The list price is how much a house is advertised for and is usually only an estimate of what a seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions. If you are a seller, you may need to adjust the listing price if there have been no offers within the first few months of the property's listing period.

What are the two most important factors when selling a home?
Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information to objectively evaluate your home's worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer. In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer. Also, make sure that your home is getting the exposure it deserves through advertising, good signage and a listing on the local multiple listing service or online listings provider. If this isn't happening, take it up with your agent or agent's broker. If you are still not satisfied you are getting the service you need, you may have to switch agents.

What is the best time to buy?
Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are eager to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.

What is the difference between market value and appraised value?
The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

What is the difference between list price, sales price and appraised value?
The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.

How does someone sell a slow mover?
Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. If you are selling in a slow market, your first step would be to lower your price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondly, you need to make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage, and listings on the local multiple listing service (MLS) and on the Internet. Another option is to pull your house off the market and wait for the market to improve. Finally, if you who have no equity in the house, and are forced to sell because of a divorce or financial considerations, you could discuss a short sale or a deed-in-lieu-of- foreclosure with your lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. The latter are radical options. Your simplest, and in many cases most effective, option is to lower the price.

How is the price set?
It's very important to price your home according to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood. A so-called comparative market analysis provides the background data upon which to base your list-price decision. When you prepare to sell and are interviewing agents, study each agent's comparable sales report (the data should be no more than three months old). If all agents agree on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.

What are the standard ways of finding out how much a home is worth?
A comparative market analysis and an appraisal are the standard methods for determining a home's value. Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet. An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

How do you prepare a house to sell?
Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, here are several ideas for making your home show better:
* Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
* Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, a federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
* Be sure that the doorbell works.
* Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
* Organize closets.
* Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
* Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
* Put vases of fresh flowers throughout the house.
* Having pleasant background music playing in the background also will help set your stage.

Where do I get information on housing market stats?
A real estate agent is a good source for finding out the status of the local housing market. So is your statewide association of Realtors, most of which are continuously compiling such statistics from local real estate boards. For overall housing statistics, U.S. Housing Markets regularly publishes quarterly reports on home building and home buying. Your local builders association probably gets this report. If not, the housing research firm is located in Canton, Mich.; call (800) 755-6269 for information; the firm also maintains an Internet site. Finally, check with the U.S. Bureau of the Census in Washington, D.C.; (301) 763-2422. The census bureau also maintains a site on the Internet. The Chicago Title company also has published a pamphlet, "Who's Buying Homes in America." Write Chicago Title and Trust Family of Title Insurers, 171 North Clark St., Chicago, IL 60601-3294.

Is a low offer a good idea?
While your low offer in a normal market might be rejected immediately, in a buyer's market a motivated seller will either accept or make a counteroffer. Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer's current house? If so, a low offer, even at full price, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.

Market Insider- Local Area Insights at Your Fingertips

Market Insider
Local Area Insights at Your Fingertips

Get monthly area updates delivered to your Inbox.

The data is consolidated from multiple sources and includes current listings, recent sales, and more. Whether you're a buyer or seller, the knowledge you gain will help put you in control of your real estate transactions.

Understand the difference between "listing prices" (what sellers are asking for) and "sold prices" (what buyers are willing to pay).

By comparing these price trends, you'll have a good idea of where the market is heading. The median listing and sold property prices are calculated based on the market activity each month.

Gain valuable insight into a community by looking at household incomes, crime risk, education levels attained, and potential for extreme weather. Use the map to locate points of interest like shopping, restaurants, and healthcare services.
Review the distribution of household income levels in a community.

The quality of a school can greatly influence home values in an area. On this page you'll find detailed information on school districts, school ratings, test scores by grade, student-teacher ratio, and much more.

Compare where you live to a new location or multiple areas using current information on community summaries, market stability, schools, listing vs. sold price, buyer vs. seller market, and even smoking bans.

Explore a wealth of information that will help you better understand the factors that impact the real estate market. Consider this page your reference library for resources, tips, and techniques.

Florida Housing Market Indicators.. Just The Facts!

Housing Market Indicators

Florida existing home sales:
(month-to-previous-year comparison) +10%

Florida existing condo sales:
(month-to-previous-year comparison) +10%

Florida existing home median price: $133,900

Florida existing condo median price: $87,200

Florida consumer confidence: 64

National existing home sales:
(month-to-previous-month comparison; all housing types)-3%

National existing home median price $165,400

National (Freddie Mac) mortgage rate
(all housing types) 4.11%

Lexington Lakes, Boynton Beach FL......... JUST REDUCED!!!

Obama administration’s latest bid to help troubled homeowners: Who would benefit?

Bellaggio Lake Worth FL

Just Listed.... Call us to view this home today 888-300-4431

This is a wow house.. Circular driveway and creative landscaping is your first welcome. Dramatically high ceiling thru the home paired with a custom kitchen of light wood cabinets with decorative glaze, granite counters with center island work station. Glass display cabinetry, designer corbels on finished breakfast bar back wall. Custom lighted entertainment center with 65 in TV perfectly placed in family room in between the oversized fixed glass windows overlooking the preserve and lake. 20" tile on the diagonal.. Stainless appliances.. Modified floor plan offers bonus storage in the kitchen and off the utility room.. Glass French doors off living room and family room.. Third bedroom currently used as a den, can be converted to have closet.. Master bedroom has high volume ceilings with bay window overlooking preserve/lake.. Custom fitted closet organizers.. Bath has full mirrored walls with decorative bevel.. Walk in shower.. Very extended and screened brick paver lanai overlooking a very private lake and nature setting. Accordion hurricane shutters.. Plus Plus.. Crown molding, upgraded base board molding.. Intercom system.. Home is extended and larger than tax records indicate.

Bellaggio Lake Worth FL JUST REDUCED!!!

Customized 3 br/2.5 bth home on a large corner lot. Your greeting starts w/ double leaded glass front doors. Tile on the diagonal thru living areas. Very spacious living room w/sliders to the oversized patio overlooking a garden view. The kitchen is upgraded w/ 42" cabinets, granite counters & under cabinet lighting. The breakfast bar has newly installed glass tile for that added decorative touch. Smooth top drop in cook top & stainless applicances. The 2nd br is a guest suite complete w/ it's own private full bath. Additional powder room. Guest bedroom has a walk in closet as well. 3rd br is being used as a den/office w/ a custom mirrored niche for displaying your collectables. The master suite has an upgraded bath w/title to the shower ceiling. Upgraded Moen faucets. Extra closet shelving. The lanai is fully screened & extended to enjoy the outdoors. There is a generator switch should you need to utilize it. Bellaggio living offers great community amenities.. A 36,000 sq ft clubhouse with a grand ballroom with stage and dance floor, a kitchen/cafe, heated indoor and resort styled outdoor heated swimming pool, fully equipped fitness center w/ aerobic studio, 10 Har-Tru lighted tennis courts w/ stadium seating, a pro shop, 3 card rooms, billiards, an arts/crafts center, computer/media room, library and so much more....

Why do some houses sit and others sell?

Properties that are priced to sell are considered "in" the market. Properties that aren't are considered simply "on" the market.

Even in the hardest hit markets, there are still buyers, and they are looking for the most competitively priced properties in the best condition.

I help sellers price their homes so that they are "in" the market. Want to sell your home quickly and for top dollar?

Contact me for a FREE, No Obligation Comparative Market Analysis.

30 years ago, the median mortgage payment was more than double what it is today.

Owning a home is more affordable than you probably think.

Affordability measures ability to buy - that is, the amount of a median family's income consumed by the median mortgage. In 1981, it took 36% of the median family's income to pay the mortgage on the median priced home. Today it takes 15% -- a historic low!

Short Sale open house in Boynton Beach

What are you doing for your home search??? Is the real estate market making you a little crazy?? If you are determined to find a great deal.. and you are determined to make it a distressed sale.. it is really important to ask a lot of questions. Step 1..... hire a great agent..Step 2 have that great agent show you qualified homes(your agent will understand what that means)..Step 3 when making your offer make sure you have your financing information up to date and provided along with the offer..Step 4 get frequent updates on the status of your offer...Step 5.. Dont do anything unusual such as buy a new car, finance new furniture... keep a conservative profile.. lenders will flag dramatic purchases and changes...
So if you have not found your dream home yet.. come see this great short sale home in Lexington Lakes.... We are waiting for your offer!!

Top 10 reasons to own rather than rent

1. You own it: With no landlord, you make the decisions.

2. You deduct it: Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income taxes.

3. Interest rates: The cost to borrow mortgage money is at an all-time low. If you’re going to buy, this is the time to jump into the market.

4. You invest in it: Rent money is gone forever. Mortgage payments build home equity ownership interests.

5. You save for the future: Home equity is a ready-made savings plan. Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.

6. You can predict expenses: Unlike rent, a fixed-mortgage payment doesn’t get more expensive over time.

7. You pick it: Choose from different neighborhoods, styles and price ranges.

8. You create it: Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.

9. You live in a neighborhood: You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.

10. You spend money on yourself: When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building your equity at the same time.

30-year FRM below 4% for first time ever

WASHINGTON – Oct. 7, 2011 –
"The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent.

For those who can qualify, it’s an extraordinary opportunity to buy a home or refinance."

Homes for sale declining across South Florida

An interesting artice release today from floridarealtors.org

"The number of homes and condominiums for sale has steadily declined across South Florida in 2011, frustrating buyers and leading to bidding wars in some cases, real estate agents say."

Welcome to the most current Housing Trends eNewsletter

SEPTEMBER - 2011 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

Please click the red headline to view the SEPTEMBER - 2011 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.

Rate on 30-year mortgage falls to record 4.01%

Real Estate Glossary - Z

Zero-lot lines : Houses built without space between them and with little or no yard.

Zoning : Regulations that control the use of land within a jurisdiction..

Zoning variance : A one-time modification of existing zoning law.

Real Estate Glossary - W

Wainscoting : Wood paneling, tongue-and-groove boards or similar material installed between a baseboard and a chair rail.

Waiver : A voluntary relinquishing of certain rights or claims.

Walk-out basement : A feature that allows a door to open onto ground level.

Walk-through : A buyer's final inspection of the home to determine if conditions in the purchase agreement have been satisfied.

Warranty : A legally binding promise to do something in the future.

Wetlands : Watery areas such as swamps, marshes and floodplains.

Wild deed : An improperly recorded deed.

Will : The most basic legal document outlining the disposition of a person's estate in the event of death.

Window light : An individual pane of glass.

Window seat : A bench built under an interior window.

Window well : A curved, corrugated steel insert used to isolate basement windows from moisture if they're below the soil line.

Window well covers : Curved plastic covers designed to be installed on top of a window well to cover the opening.

Wraparound mortgage : A loan to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.

Real Estate Glossary - V

Variable interest rate : A loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills.

Variable rate mortgage : A loan with an interest rate that hinges on factors such as the rate paid on bank certificates and Treasury bills.

Variable rate : An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.

Vaulted ceiling : An elongated half-cylinder that arches above the floor.

Verification of deposit : Part of the loan process, in which a lender will ask a borrower's bank to sign a statement verifying the borrower's account balances and history.

Verification of employment : Part of the loan process, in which a lender asks the borrower's employer for confirmation of the borrower's position and salary.

Vestibule : A small entrance hall or room.

Veterans Administration (VA) : The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.

Victorian style : An architectural style that dates from the mid-19th century.

Vinyl-clad windows : Wood windows sheathed in vinyl on the outside.

Voluntary lien : A lien that a homeowner willingly gives to a lender.

VA loans : A program that allows most veterans to purchase a house without a down payment.

Real Estate Glossary - U

Underlayment : A layer of wood between the subfloor and the floor.

Underwriting : The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.

Undisclosed heir : A person who claims the right to a piece of property after the death of an owner without a will.

Undisclosed spouse : An unidentified marital partner who can claim the right to a piece of property.

Unrecorded deed : An unrecorded deed transfers ownership from one party to another without being officially recorded.

U.S. Department. of Housing and Urban Development (HUD) : A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.

Unsecured loan : Any loan that is not backed by collateral.

Upgrades : Options than the standard carpeting, lighting, finish carpentry and other amenities offered to all buyers in a new-home project.

Upzoning : The process in which a property is zoned from a lower to a higher use.

Urban sprawl : The unplanned expansion of development over a large area.

Usury : A reference to illegally excessive interest charged on any loan.

Real Estate Glossary - T

Tap fees : Most companies charge a tap fee for hooking up utilities.

Tax deduction : A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.

Tax lien : An impediment placed against a property, such as back taxes.

Tax sale : The public sale of a property by the government for nonpayment of taxes.

Tax shelter : A term often applied to real estate investment and refers to various tax advantages.

Tear-down condition : A house that requires the entire interior to be rebuilt.

Teaser rate : An low, short-term rate offered on a mortgage to entice the borrower.

Tenancy by the entirety : When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree.

Tenants in common : Two or more owners who share interest in a specific property.

Terrace : A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.

The 72-hour clause : When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remo

Third-party origination : In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.

Timeshare : Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.

Title : The actual legal document conferring ownership of a piece of real estate.

Title company : Firms that ensure that the title to a piece of property is clear and provide title insurance.

Title insurance : A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.

Title risk : Possible impediments to the transfer of a title from one owner to another.

Title search : A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.

Top producer : A real state industry term that refers to agents and brokers who sell a high volume of homes.

Top soil : The top layer of soil that is removed when lots are graded in preparation for construction.

Total expense ratio : The percentage of monthly debt obligations relative to gross monthly income.

Townhouse : An attached home that is not a condominium.

Tract home : Another term for a production home, a mass-produced house constructed by one builder in a project.

Trade equity : Other real estate or assets a buyer gives to a seller as part of the down payment.

Trading down : A reference to buyers who purchase a home that is less expensive than their current house.

Trading up : A reference to buyers who purchase a home that is more expensive home than their current house.

Transfer of ownership : Any legal means by which a piece of real estate changes hands.

Transfer tax : An assessment by state or local authorities at the time a piece of property changes hands.

Transom : A small hinged window directly above a door.

Trans-Union : Trans-Union Corp. is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Phone: (312) 408-1400.

Tray ceiling : A tray ceiling has edges that slant toward the middle from the walls.

Treasury bills : Securities issued by the Treasury Department that have the full backing of the U.S. government.

Treasury index : An index used to determine interest rate changes for adjustable rate mortgages.

Trellis : A decorative landscape structure made of thin strips of wood or plastic.

Trim work : The finishing of doors, doorways, window frames and floors.

Truss : A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.

Trust account : Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.

Trustee : A legally empowered person who holds or controls a piece of property for another person.

Truth-in-Lending Act : A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed)

Tuck-point : The process of removing old mortar from between bricks and replacing it with new mortar.

Two-step mortgage : An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.

Two- to four-family property : A piece of property that is owned by one person but provides housing for up to four households.

Real Estate Glossary - S

Sale-leaseback : A transaction in which the buyer leases back the property to the seller for a specified period of time.

Sales contract : A contract signed by the buyer and sellerthat details the terms of a home purchase.

Saltbox style : A design that dates to colonial times and takes its name from the shape of saltboxes.

Sanitary sewer : The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.

Sash : One of two windows in a double-hung window.

Schematic designs : Renderings of floor plans and the exterior of a house.

Second mortgage : Another loan placed upon a piece of property.

Secondary mortgage market : A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.

Secured loan : Any loan backed by collateral.

Security : Apiece of property designated as collateral.

Seller broker : A seller broker represents the interest of the seller.

Seller carry-back : An agreement in which the seller provides financing for a home purchase.

Seller take-back : An agreement in which the seller provides financing for a home purchase.

Seller's market : A hot real estate market in which sellers have the advantage and multiple offers are common.

Semi-custom home : The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan.

Septic system : A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.

Servicer : A firm that collects mortgage payments and manages borrowers' escrow accounts.

Setback : The minimum distance a house or buildings must be from the lot line.

Settlement statement : A document that details who has paid what to whom.

Shared-appreciation mortgage : A loan that allows a lender or other party to share in the borrower's profits when the home is sold.

Shared-equity transaction : A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.

Shed ceiling : A shed ceiling pitches upward at one end.

Shed roof : A shed roof pitches up longer on one side than the other.

Shingle style : An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house.

Shingles : Thin, wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.

Shoe molding : An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard.

Sill plate : A horizontal piece of wood placed on top of the foundation.

Sill cock : An exterior threaded faucet connection for garden hoses that provides water outside a home.

Skylight : A window in a roof that allows natural light to illuminate a room.

Slab foundation : A foundation built directly on soil with no basement or crawl space.

Slider window : A window that is composed of two windows, or sashes, that glide open and closed on a metal track.

Soffit : An external area under the overhang of a roof.

Soils test : A test of the subsoil to ensure that foundations can be safely constructed.

Spanish Mission style : A design that is derived from the original missions established by the Spanish in the Southwest.

Special assessment : When a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners.

Special deposit account : Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.

Specifications : The written requirements for materials, equipment, construction systems and standards.

Speculation home : A home that has been built without a buyer.

Splash block : A slanted block used to divert runoff water from a downspout away from the foundation.

Split-level style : A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.

Square footage : The number of square feet of livable space in a home or building.

Standard Metropolitan Statistical Area : Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.

Standard payment calculation : A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.

Starter home : Homes that fall within the lower price range of a typical first-time buyer.

Steel framing : A construction method used by commercial and residential builders.

Step-rate mortgage : A loan that allows a gradual increase in the interest rate during the first few years of the loan.

Storm sewer : A drain line, which is not connected to the sewer line, removes all other wastewater from a home.

Storm windows : Sets of windows and screens that are installed on older double-hung windows.

Strike plate : The metal part of a lock that is anchored to the doorframe and holds the door closed.

Straight purchase : A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes.

Stucco : A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.

Studs : The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.

Subagent : When an agent brings a buyer to a property, they in effect act as a subagent to the listing agent.

Subcontractor : Specialty construction companies hired by the general contractor to perform certain tasks.

Subdivision : The process in which the owner of a large piece of property divides it into smaller parcels.

Sub-flooring : The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.

Subordinate loan : A second or third mortgage.

Sump pump : A pump that moves water from a basement sump pit.

Survey : A precise measurement of a piece of property by a licensed surveyor.

Sweat equity : The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements.

Real Estate Glossary - R

R-value : A construction term that refers to the resistance of to heat loss. The higher the R-value, the slower the rate of heat loss.

Radon : A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer , radon is found in mostly the northern half of the country.

Rafter : Rafters form the slope of a pitched roof and are analogous to floor joists.

Rammed-earth construction : An alternative building process in which dirt is compacted into large structural frames to create walls.

Ranch style : Modern ranch-style homes, popularized in the 1950s, were championed by such architectural giants as Frank Lloyd Wright.

Rate-improvement mortgage : A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing.

Rate lock : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.

Real estate : Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.

Real estate agent : A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.

Real estate attorney : A lawyers who specializes in real estate transactions.

Real estate broker : A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.

Real estate investment trusts (REITs) : The trusts are publicly traded companies that own, develop and operate commercial properties.

Real Estate Settlement Procedures Act (RESPA) : A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws kickbacks in the real estate business.

Real property : Land and any permanent fixtures on it, including buildings, trees and minerals.

Realtist : A designation for an agent or broker who is a member of the National Association of Real Estate Brokers.

Realtor : A designation for an agent or broker who is a member of the National Association of Realtors.

Recission : The cancellation of a contract by law or consent by the parties involved.

Reconveyance : When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.

Recorder : A public official responsible for keeping the records of all real estate transactions.

Recording : The filing of a specific document to the appropriate government entity.

Recording fee : A fee charged by real estate agents for conveying the sale of a piece of property into the public record.

Redlining : The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.

Refinancing : The process of replacing an older loan with a new mortgage that has better terms.

Regulation Z : The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.

Rehabilitation mortgage : A mortgage that provides for the costs of repairing and improving a resale home or building.

Relocation benefits : Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.

Relocation company : A firm that administers all aspects of moving in new employees to the community.

Remaining balance : The amount of unpaid principal on a home loan.

Remaining term : The original loan term minus the number of payments made.

Renter's insurance : A policy that covers the replacement value of possessions.

Rent loss insurance : A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.

Repayment plan : When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.

Replacement reserve fund : Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room.

Repossession : When a house is repossessed, it is taken back by the lender holding the mortgage.

Resale value : The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.

Reserve fund : All homeowners associations set aside a certain amount of money for major repairs or improvements.

Restructured loan : A mortgage in which new terms are negotiated.

Return on investment : The amount of profit a property generates.

Reverse mortgage : A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.

Ridge board : A horizontal board that serves as the apex of the roof structure.

Ridge vent : A vent located along the ridge board of the roof that allows moisture to escape.

Right of first refusal : An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market.

Right to recission : A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing.

Rough-in : The installation of plumbing, electrical and other mechanical systems.

Rural Housing Service : A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.

Real Estate Glossary - Q

Qualifying ratios : Lenders compute qualifying ratios to determine how much a potential buyer can borrow.

Queen Anne style : A Victorian-era style that originated in San Francisco.

Quit-claim deed : A document that releases a party from any interest in a piece of real estate.

Real Estate Glossary - P

Parcel : An officially described piece of land.

Partition : An interior wall.

Partnership : There are several partnership options for unmarried individuals to buy a piece of property, such as live-in partnerships (in which both buyers share the residence) or a shared-equity partnership (in which one buyer lives in the home and the other is an in

Passive loss : A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.

Passive solar system : A system that supplies solar heat without the use of electric fans or pumps.

Patent defect : A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.

Payment cap : A legal limit on the amount a monthly payment can increase on an adjustable-rate mortgage.

Percolation test : A test used to determine the ability of soil to accommodate a septic system.

Per-diem interest : Interest charged or accrued daily.

Panel : A section or division of a wall, ceiling or a flat piece of building material that forms the part of the surface of a wall, door or cabinet.

Paneling : Strips of wood or wood material applied as a finish to a wall.

Parking strip : The strip of grass between the sidewalk and the street in front of a house.

Partition : Any kind of structure dividing one room or space from another.

Patio : An interior courtyard or a paved backyard area.

Perennial : Any plant that produces leaves, flowers and seeds from year to year, such as irises or peonies.

Pergola : An arbor with an open roof of rafters supported by posts or columns.

Personal property : Any moveable property in a house such as furniture or appliances.

Pest-control inspection : A common pest-control inspection is a termite inspection, which is required in some states, such as California.

Pier : A rectangular masonry support column.

PITI (Principal, Interest, Taxes, Insurance) : When a buyer applies for a loan, the lender will calculate the principal, interest, taxes and insurance. The figure is designed to represent the borrower's actual monthly mortgage-related expenses.

Planned communities : The concept began in the 19th century and describes any town or neighborhood built with certain guidelines and goals.

Planned-unit development : Residents own the home and the land, and share the use and financial responsibility for common areas.

Plaster : A labor-intensive and more costly wall finish.

Pocket door : A sliding door that retreats into the wall when opened.

Point : Fees charged by lenders at the time a loan is originated. A point is equal to 1 percent of the total loan amount.

Porch : The structure can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.

Porte cochere : A porch-like roof extending over a driveway.

Portfolio lender : A lender who makes loans with its own funds and keeps the loans on the company's books--in other words, inside the institution's "portfolio"--rather than selling the loan on the secondary market.

Portico : A porch supported by a row of columns.

Possession : When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.

Power of attorney : A document that authorizes an individual to act on behalf of someone else.

Pre-approval letter : A letter from a lender that informs a seller about the amount of money that a potential buyer can obtain.

Prepaid expenses : The costs for taxes, insurance and assessments paid before the due date.

Prepaid interest : Interest paid before it is due. For example, at the close of a real estate transaction borrowers usually pay for the interest on their loan that falls between the closing period and the first monthly payment.

Prepayment penalty : Lenders can impose a penalty on a borrower who pays a loan off before its expected end date.

Prequalification : Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

Pre-sold home : Homes that are sold before they are built.

Pressure relief valve : A safety vent that relieves excess pressure in a water heater.

Price range : The range of how much a buyer is willing to pay for a home.

Primer : The initial coat of paint that is applied before the final topcoat.

Principal : The amount of money that the borrower owes on a mortgage.

Principle of conformity : The idea that a house will more likely appreciate in value if its size, age, condition and style are similar to, or conform to, other houses in the neighborhood.

Principle of progression : An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.

Principle of regression : An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of too many lower-end properties.

Privacy fence : A structure erected between two pieces of property.

Private mortgage insurance (PMI) : A special type of loan insurance that many lenders require borrowers to purchase if the borrower's down payment is less than 20 percent of the home's purchase price.

Probate sale : A real estate sale triggered by the death of the owner, with proceeds to be divided among heirs or creditors.

Production home : Homes that are mass-produced by one builder in a project.

Programming : A written summation by an architect of a project's design objectives, constraints and criteria.

Project budget : A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies and owner-furnished goods and services.

Property line : The official dividing line between properties.

Property report : A disclosure issued by the state when a time-share project is located or sold.

Property tax : Property taxes are calculated at about 1.5 percent of the current market value.

Property tax deduction : The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.

Property value : The value of a piece of property is based on the price a buyer will pay at a certain time.

Proration : Agreed-upon percentages of certain expenses associated with a piece of property that must be paid by the buyer or the seller at the time of closing.

Punch list : Buyers compile a punch list during the final walk-through detailing items to be fixed before closing.

Purchase agreement : A document which details the purchase price and conditions of the transaction.

Purchase-money mortgage : A mortgage that a borrower obtains to acquire a property.

Real Estate Glossary - O

Online real estate listings : Properties listed for sale on the Internet.

Open house : A marketing tool in which a listing agent opens a house for view.

Open listing : A property given to a number of brokers to market at the same time.

Open space : Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.

Option : A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.

Oral agreement : Contractual arrangements that are not in writing and are usually not legally binding.

Original principal balance : The amount of principal owed on a loan before a borrower makes any payments.

Origination fee : A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.

Overhang : A protruding structural feature.

Owner financing : A transaction in which the seller of a property agrees to finance all or part of the purchase.

Real Estate Glossary - N

Nail pops : Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.

Needs-based pricing : A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.

Negative amortization : The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate lo

Negative-slope driveway : A driveway that drops from street level to the garage.

Neo-traditional planning : Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

Net cash flow : Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.

Net worth : The worth of a person or company based on the difference between total assets and liabilities.

New Urbanism : A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

Niche : A small recessed area in a wall, traditionally arched at the top.

NIMBY (Not In My Back Yard) : The response sometimes given by neighborhoods and communities to proposed changes or development.

No cash-out refinance : The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.

No-competition lots : A lot in which the buyer's home will be constructed by a particular builder.

No-documentation loan : A loan application that does not require verification of income but typically is granted in cases of large down payments.

Non-assumption clause : A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

Non-liquid asset : An asset such as a house that is not easily turned into cash.

Non-recurring closing costs : Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.

Note : The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.

Note rate : The interest rate specified in a mortgage note.

Notice of default : A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.

Real Estate Glossary - M

Main water shut-off valve : The primary valve that halts the flow of water from the water meter into a home.

Mansard roof : A roof with four sides that slope upward from the roof edge to the square peak.

Manufactured housing : Prefabricated homes that can range from simple trailers to larger dwellings.

Mantel : The facing of stone, marble or other material around a fireplace.

Maintenance fee : The monthly assessment members of a homeowners' association pay for the repair and maintenance of common areas.

Managed-competition lots : Lots in which buyers choose between one of several builders.

Margin : The lender's "retail markup" on the mortgage. For example, if the index rate for an adjustable-rate mortgage is 5 percent but the lender has a 2.5 percentage-point margin, the rate the borrower will pay is 7.5 percent.

Market conditions : Factors affecting the sale and purchase of homes at a particular point in time.

Market value : The price that a piece of property sells for at a particular point in time.

Masonry : The brick or stone work on a building.

Master-planned community : A suburban plan that includes homes and commercial, work, educational and community facilities.

Maximum financing : A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.

Mechanical systems : A home's plumbing, wiring, heating and cooling systems.

Mechanic's lien : Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.

Mediation : A dispute-resolution process in which a neutral party works to resolve contract differences.

Median price : The price of the house that falls in the middle of the total number of homes for sale in that area.

Merged credit report : A report that draws information from the Big Three credit-reporting companies: Equifax, Experian and TransUnion Corp.

Metes and bounds : A time-honored land surveying method of describing land in terms of shape and boundary dimensions.

Mint condition : Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.

Mixed-income housing : A neighborhood that contains houses of widely varying prices.

Mixed-use development : A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential and public accommodations.

Modification : A change in any of the terms of the loan agreement.

Molding : Decorative trim elements applied to walls, ceilings, and window and door openings.

Money market account : Accounts that work like money market funds and allow individual investors to participate in certain managed investments and withdraw funds under most conditions.

Money market funds : A mutual fund that pools the resources of individuals to invest in certain managed investments.

Mortgage : A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.

Mortgagee : A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

Mortgagor : The person who borrows money to purchase a house. The lender is called the mortgagee.

Mortgage acceleration clause : A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or

Mortgage banker : A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.

Mortgage broker : A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.

Mortgage insurance : Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.

Mortgage-interest deduction : The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.

Mortgage life insurance : A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.

Motivated buyer : Any buyer with a strong incentive to make a purchase.

Motivated seller : Any seller with a strong incentive to make a deal.

Move-in condition : A house that is ready for a new occupant.

Move-up buyer : A buyer who has purchased a home before and is looking for a bigger or more expensive home.

Mullion : A vertical dividing bar between window lights or panels.

Multidwelling property : A property that contains individual units for several households but carries only one mortgage.

Multifamily mortgage : A mortgage on a multifamily dwelling with more than four families, typically an apartment building.

Multiple listing service (MLS) : The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.

Multiple offers : Multiple purchase offers occur in hot markets or hot neighborhoods.

Municipal housing inspector : Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.

Real Estate Glossary - L

Landscape : A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal.

Landscape architect : A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.

Landscape designer : A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.

Landscape contractor : A professional who carries out the plans of a landscape architect or a landscape designer.

Late charge : A fee a lender imposes on a borrower when the borrower does not make a payment on time.

Late payment : A payment a lender receives after the due date has passed.

Latent defect : An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.

Lead : A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.

Lease : A binding agreement that contains the terms and conditions of a renter's occupancy.

Leasehold estate : An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.

Lease option : A lease that contains the right to purchase the property for a specific price within a certain time frame.

Lender : A bank, savings institution or mortgage company that offers home loans.

Legal blemish : Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.

Legal description : A specific way of identifying and locating a piece of real estate that is acceptable to a court.

Letter of intent : A formal statement that the buyer intends to purchase the property for a certain price on a certain date.

Leverage : The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.

Liabilities : A borrower's debts and financial obligations.

Liability insurance : A policy that protects owners against any claims of negligence, personal injury or property damage.

Lien : A claim laid by one person or company on the property of another as security for money owed.

Life cap : A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fix

Life-cycle cost analysis : An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.

Limited partnership : Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.

Lintel : A horizontal piece over a door or window that carries the weight of the structure above it.

Liquid assets : Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.

Liquidated damages : When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.

Listing : A piece of property placed on the market by a listing agent.

Listing inventories : The known number of houses for sale within a given market.

Live-in partnership : An arrangement in which two unrelated people purchase a home.

Live-work space : An officially designated dwelling in which the occupant conducts a home-based business or enterprise.

Load-bearing wall : A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.

Loan application : The first step toward submitting a home loan requires the borrower to itemize basic financial information.

Loan application fee : A fee charged by lenders to for making a loan application.

Loan commitment : A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.

Loan officer : An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.

Loan origination fee : Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.

Loan processing fee : A fee charged by some lenders for gathering information to enable the lender to process the loan.

Loan term : The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.

Loan -to-value ratio : A technical measure used by lenders to assess the relationship of the loan amount to the value of the property

Lock-in : When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

Loft : A living space not partitioned into rooms or a small space built above a larger room.

Log cabin : Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.

Low-ball offer : An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.

Low density : A low concentration of housing units in a specific area.

Low-documentation loan : A mortgage that requires only minimal verification of income and assets.

Low-down-payment loan : A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.

Real Estate Glossary - K

Kit home : A structure that contains prefabricated components and is put together by a contractor.

Knee wall : A wall-like structure that supports roof rafters.

Knob-and-tube wiring : An old-fashioned wiring system that has been replaced by fuses and circuit breakers.

Real Estate Glossary - J

Jalousie window : A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats.

Joint liability : The responsibility of two or more people to fulfill the terms of a home loan or debt.

Joint tenancy : Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.

Joist : A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists.

Judgment : The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.

Judicial foreclosure : A procedure to handle foreclosure proceedings as civil matters.

Jumbo mortgage : Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $300,700.

Junior mortgage : A loan that subordinate to the primary loan.

Real Estate Glossary - I

Impact fees : Fees collected from developers of new homes to pay for schools, parks and other facilities.

Implied warranty of habitability : Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.

Impounds : A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.

Income property : Property that is not occupied by the owner but is used to generate income.

Incurable defect : A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.

Index : Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.

Individual Retirement Account : Tax-deferred savings accounts that allow people to accrue retirement funds.

In-file credit report : Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.

Infill development : Any significant new construction in an established area.

Infill housing : Home construction in established areas.

Inflation : This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.

Infrastructure : The roads, schools, parks, utilities, bridges and communications systems in a community.

Initial interest rate : The original interest rate on an adjustable mortgage.

Inspection report : An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.

Installment contract : A purchase agreement in which the buyer does not receive title to the property until all installments are paid.

Insulation : Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.

Insurable title : Title to property that a company agrees to insure against defects and disputes.

Insurance : Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.

Insurance binder : A temporary insurance arrangement usually put in force until a permanent policy can be obtained.

Interest : The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.

Interest accrual rate : The rate at which interest accrues on a mortgage.

Interest-only loan : The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interest rate : The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible.

Interest rate buy-down plans : For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.

Interest rate caps : A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.

Interest rate ceiling : The highest interest a lender can charge for an adjustable-rate mortgage.

Investment property : Real estate that generates income, such as an apartment building or a rental house.

Real Estate Glossary - H

Half-bath : Also called a powder room, a half-bath contains a toilet and a sink but no bathtub or shower stall.

Hazard insurance : This provision of homeowners insurance covers damage by fire, wind or other disaster. It is required by all lenders before a loan is approved.

Header : Crossbeams above windows and doors.

Heat pump : An electric cooling and heating system.

Hectare : The equivalent of 2.471 acres.

High density : The concentration of housing units in a specific area or on a specific property.

High-rise : Any building higher than six stories.

Hip roof : A pitched roof with sloping sides.

Historic preservation : The physical rehabilitation of a historic home or building, and the movement of the same name begun in the 1960s in the U.S. to preserve and protect landmarks and urban neighborhoods.

Historic structure : A home or building listed in the National Register of Historic Places and certified as historic by the U.S. Secretary of the Interior.

Home equity conversion mortgage : Loans made to older owners who want to convert equity into money. Because borrowers are qualified on the basis of the value of their home, e, the loan is not the same as a home equity loan. Also known as reverse mortgages.

Home equity loan : A loan that allows owners to borrow against the equity in their homes.

Home inspection : An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.

Homeowners' association : A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the

Homeowners' insurance : This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.

Homeowners' warranty : Special insurance policies that cover certain home repairs for a specified amount of time.

Home rule : The power of a local government to adopt its own land-use regulations.

Homesteading : A document that to protects some of a home's equity from lawsuits.

Home warranty : A type of insurance that covers repairs to certain parts of a house and some fixtures.

Hopper window : A window that contains a single sash that tilts inward.

Hose bibb : A threaded faucet connection for devices such as a washing machine.

Housing discrimination : The illegal practice of denying an individual or group the right to buy or rent a home based on race, color, religion, national origin, sex, disability or family status.

Housing expense ratio : The percentage of gross monthly income devoted to housing costs.

House wrap : A polyethylene barrier wrapped around a house to save energy.

HUD-1 Uniform Settlement Statement : A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.

Real Estate Glossary - G

Gable : A triangular wall enclosed by the sloping ends of a ridged roof or a triangular decorative feature.

Gable roof : A ridged roof that forms a triangle at each end.

Gag rules : A provision in contracts signed by new buyers that prohibits the owners from publicizing complaints about the builder.

Gambrel roof : A roof with two slopes, often seen on barns.

General contractor : The person who hires all of the subcontractors and suppliers for a project.

General plan : A government's long-range land-use plan.

Georgian style : Popular throughout the 18th century, this type of architecture is distinguished by a symmetrical facade, prominent front entrance and quoins-decorative blocks of masonry or wood set in the corners of the house.

Geodesic dome : A structure constructed of lightweight bars forming a grid of polygons.

Gift : A cash gift a buyer receives from a relative or other source. Lenders usually require a "gift letter" stating that the money will not have to be repaid.

Gingerbread decoration : An intricate, almost lacy, wood trim.

Girders : Crossbeams that support floor joists.

Government National Mortgage Association : Commonly known as Ginnie Mae, this agency buys home loans from lenders, pools them with other loans and sells shares to investors. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal gover

Grace period : A specified amount of time to make a loan payment after its due date without penalty.

Grade : The elevation of land above level ground.

Graduated-payment mortgage (GPM) : A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.

Grade level : The flat or sloping surface upon which a house is built.

Granny flat : Slang term for a separate unit in a house or above the garage, which in the past may have been occupied by an elderly relative.

Grantee : A person conveyed an interest in a piece of property.

Grantor : The person who conveys an interest in a piece of property to another person.

Greek Revival style : A style introduced in the U.S. at the end of the 18th century. Its most prominent feature is a pillar-anchored pediment forming a portico in the front of the house.

Greenbelt : Any stretch of park, open space or other natural setting in a community.

Gross income : The total income of a household before taxes or expenses are subtracted.

Ground fault circuit interrupter : Devices that detect leakage of electrical current to the ground and prevent accidental shock.

Ground rent : The amount of money paid for the use of a piece of property when it is a leasehold estate.

Group home : A single-family residence used as a living space for unrelated, developmentally disabled or mentally disabled people.

Growing-equity mortgage : A fixed rate mortgage that increases payments over a specific period of time. The extra funds are applied to the principal.

Guarantee mortgage : A loan guaranteed by a third party, such as a government institution.

Gutters : Horizontal channels installed at the edge of a roof to carry rainwater or melted snow away from the house.

Real Estate Glossary - F

Façade : The part of a building facing the street or a courtyard.

Fair Credit Billing Act : A federal law that governs credit and charge card billing errors. If a credit or charge card company violates any provision, consumers can sue to recover damages.

Fair Credit Reporting Act. : A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, main

Fair Debt Collection Practices Act. : A federal law passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers hired by the creditor to help collec

Fair Housing Act : Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disabil

Fannie Mae : The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Farmer's Home Administration : A U.S. Department of Agriculture agency that provides credit to farmers and rural residents.

Fascia : A board that connects the ends of the roof rafters and provides a surface to support gutters.

Federal Home Loan Mortgage Corporation,law : The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.

Federal Housing Administration (FHA) : This government agency operates a variety of home-loan programs. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

Federal National Mortgage Association : Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.

Federal Reserve Board : A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.

Federal Trade Commission : The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors. National headquarters: Sixth and Pennsylvania Avenue NW, Washington,

Fee simple : This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.

Fee simple defeasible : The owner of the property holds a fee simple title contingent upon certain conditions.

Federal style : The all-American home architecture style that evolved after the Revolutionary War. Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.

FHA loans : Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgages to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural

Feng shui : An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner.

Fiduciary duty : The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

Field changes : Modifications made on the construction site that do not match blueprints.

Fill dirt : Soil brought in to solidify a finished foundation.

Filled land : An area where the ground has been raised by adding dirt, gravel or other fill material.

Finder's fee : A fee in any amount that is paid to someone.

Finish grade : A finish that prepares a lot for landscaping.

Fire wall : A buffer composed of fire-resistant material.

Firm commitment : A promise made by a lender when it agrees to loan money for the purchase of property.

First mortgage : The primary mortgage on a property that has priority over all other voluntary liens.

Fixed installment : The monthly payment on a home loan.

Fixed-rate mortgage : A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.

Fixed time : The specific weeks in a year an owner of a timeshare arrangement has access to accommodations.

Fixer-upper : A house that needs refurbishment or remodeling It usually sells at a below-market price.

Fixture : Personal property permanently attached to a house, such as drapery rods, toilets, built-in bookcases or a furnace.

Flashing : Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.

Flat fee : A set fee charged by a broker instead of a commission.

Flat roof : A roof with a level surface.

Floor area ratio : The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.

Float floor drain : A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.

Floating wall : Walls built to withstand movement in the basement floor.

Flood insurance : Hazard coverage that is required in designated flood areas.

Flood plain : Flat, flood-prone areas located along waterways.

Florida rooms : Enclosed porches built on the side or back of a home.

Footings : Concrete foundations that support a structure.

Forbearance : A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.

Foreclosure : The legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. A

Forfeiture : The relinquishing of property rights by a delinquent borrower.

For Sale By Owner (FSBO) : The owner acts as the agent to avoid paying a sales commission.

Foundation : The support structure of a house.

401(k) plans : Financial plans that allow employees to set aside tax-deferred income for retirement or emergency purposes.

Foyer : The entrance hall to a home or building.

Framing : The construction of the skeletal framework of a house.

Freddie Mac : The common name for the Federal Home Loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Free-market lots : Owners of these types of lots may hire any builder to construct their home.

French doors : Two adjoining doors inlaid with glass that open from the middle.

Frontage : The portion of property that borders a roadway or body of water.

Fully amortized adjustable-rate mortgage : A mortgage that amortizes, or pays down, the balance of a loan.

Furnace : An enclosed heating device powered by coal, oil, propane or natural gas.

Fuse : A device that allows power to be channeled into a home.

Real Estate Glossary - E

Early occupancy : The condition in which buyers can occupy the property before the sale is completed.

Earnest money : Money a buyer gives with an offer to purchase a property. Also called a deposit.

Earthquake insurance : A policy that provides coverage against damage to a home from an earthquake.

Easement : A right given to a third party to use a portion of the property for certain purposes, such as power lines or water mains.

Eaves : The projecting overhang at the lower edge of a roof.

Effective age : The age of a structure estimated by its condition rather than its actual age.

Effective gross income : Additional income that a lender considers when assessing the loan application of a potential borrower.

Electric service panel : A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers.

Elevations : The exterior view of a home design that shows the position of the house relative to the grade of the land.

Ell : An extension or wing of a house that is at right angles to the main structure.

Eminent domain : The government's right to condemn private land for public use, such as the routing of a public highway.

Employer-assisted housing : Programs which help employees purchase homes through special plans developed with lenders.

Empty nesters : Potential buyers who have raised their families and want to move into a smaller home.

Encroachment : Fences or other structures that extend into the property of another owner.

Encumbrance : A claim or lien on a property which complicates the title process.

End loan : The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have been completed.

Endorser : A person who signs over ownership of property to another party.

English Tudor style : An architectural design that features stone or brick exterior walls and exposed beams.

Environmental impact statement : A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site.

Environmentally friendly home construction : A method of construction that utilizes recycled materials.

Equal Credit Opportunity Act. : A federal law that prohibits a lender or other creditor from refusing to grant credit based on the applicant's sex, marital status, race, religion, national origin or age. The law also prohibits a creditor from refusing to grant credit because the applica

Equifax : Equifax Credit Information Services, Inc., is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374.

Equity : A determination of the value of a property after existing liens are deducted.

Errors and omissions insurance : A policy that pays for any mistakes a builder or architect makes in a project.

Escrow : A neutral third party holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met.. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower

Escrow account : An account that a lender or mortgage servicer establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.

Escrow agent : A neutral third party who ensures that all conditions of a real estate transaction are met.

Escrow analysis : A lender's periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower's monthly mortgage payment to pay for expenses such as property taxes and insurance.

Escrow closing : Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer.

Escrow company : Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met.

Escrow payment : Funds that a mortgage servicer withdraws from a borrower's escrow account to pay property taxes and insurance.

Estate : The total assets of a person, including real property, at the time of death.

Eviction : A legal procedure to remove a tenant for reasons including failure to pay rent.

Examination of title : An inspection by a title company of public records and other documents to determine the chain of ownership of a property.

Excavation : The process of clearing trees, removing topsoil and grading land before the foundation is laid.

Exclusive listing : A contract that gives an agent the exclusive right to market a property for a specific period of time.

Executor : A person appointed to carry out the instructions in a will. If there is no will, a probate court will appoint an executor.

Exhaust fan : Ventilating devices that remove water vapor, undesired smells or smoke.

Experian : Experian, formerly known as TRW Information Systems & Services, is one of the "Big Three" credit-reporting bureaus.. Address: 505 City Parkway West, Orange, CA 92868.