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Jun 15, 2021 · 40 Common Real Estate Abbreviations and Acronyms. Written by MasterClass. Last updated: Jun 15, 2021 • 7 min read. The real estate industry uses several unique acronyms and abbreviations. Understanding these terms can be beneficial for buyers and sellers.
- 7 Day Notice
- Best and Final
- BMV
- Broker
- Deposit
- Dip and AIP
- Downval
- Freehold
- FTB Property
- Gazundering and Gazumping
The 7 day notice periodis the notice period required by the banks before exchange of contracts on a repossessed property.
When a property has more than one interested party and negotiations are going back and forth with both parties increasing, a situation may occur where sealed bids are offered. “Best and final” is the estate agents’ term for this. Estate agents should prevent an out and out bidding war be requesting a potential buyers ‘best and final offer‘.
BMV is an acronym which stands for Below Market Value. We use this term when teaching people how to buy propertybelow the value that the market current suggests. We do not recommend that you use this term with estate agent as they may not know what it means.
A mortgage broker is a person who acts on behalf of an individual or business in order to broker a mortgage. The existence of a mortgage broker is predicated on them finding a bank to lend a specific loansomeone is seeking. The UK currently has 2 forms of mortgage broker markets; regulated and unregulated. Regulated mortgaged brokers lend to privat...
The term ‘deposit’ refers to the amount of money you need to put down to purchase a house. When applying for a mortgage you will need to put a deposit downas a percentage value of the property. In the UK, banks offer you a mortgage based off the remaining amount of the property minus this deposit. For example, if you put a 20% depositon a £150,000 ...
DIP and AIP are acronyms used when applying for a mortgage. AIP stands for ‘Agreement in Principle. DIP stands for ‘Decision in Principle. A decision in principle or agreement in principle is an indication from your mortgage lender of how much you may be able to borrow to purchase a property. You need to remember that a decision in principle is NOT...
Downval is a shortened combination of the phrase ‘down valuation’. A down valuation is when a buyer’s mortgage surveyor values the property in question for less than the agreed price. The difference between their new valuation and the agreed sum is the down valuation. For example, if you agree to buy a property for £150,000 but the mortgage surveyo...
In the UK, Freehold is a form of property ownership. With a freehold, a person or organisation has outright ownership of a property and the land on which it is built. With freehold there is no expiration of the rights, you have ownership forever.
FTB is another acronym estate agents used and stands for First Time Buyer. FTB property stands for First Time Buyer Property. The definition of a first time buyeris someone has never owned a property before in any capacity.
Gazundering and gazumping are two of the quirkier property termsyou’ll come across. One is applicable to sellers, the other to buyers. Gazundering applies to property sellers and is when you have an offer reduced at the eleventh hour. Gazumping applies to property buyers. You are ‘gazumped’ if you are outbid on a propertyby another prospective buye...
Jan 6, 2023 · Here are 44 of the most common real estate abbreviations, acronyms and terminologies used by the real estate industry.
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Nov 13, 2023 · Whether you're a veteran agent or total rookie, you need to be able to explain these real estate terms and definitions to clients.
- Absorption: Often reported as a property’s absorption rate, an absorption is the amount of units or inventory of a particular type of commercial property that was occupied in a given market within a specified time period (usually not exceeding one year).
- Addendum: An addendum in real estate is a piece of additional information covering certain circumstances of a transaction and it is often added to a form contract as an attachment before execution of the contract or during escrow.
- Adjustable-Rate Mortgage (ARM): ARM refers to an instrument that allows real property to be used as collateral for a promissory note, which must specify interest rates and how they are expected to change from time to time.
- Amortization: Amortization is a process of using regular payments or installments to pay off debts, for example, a mortgage, over an agreed period of time.
In this part, you will learn some of the most common abbreviations in real estate and real estate jargon. If you are buying an investment property, it is important to know these terms so you can prepare financially.
Mar 20, 2023 · When searching for a home or applying for a mortgage, you may hear your real estate agent or lender use any of the terms or acronyms below. Keep this guide handy — you'll be fluent in the language of home buying before you know it.
