Category Home Seller Information

Below are some common real estate contract terms that every home buyer and seller should know.

Appraisal: An “opinion” of a home’s market value by a licensed appraiser.

BINSR: (Buyer’s Inspection Notice, Seller’s Response.) This is the contract used for the buyer to tell the seller what they are requesting to be fixed on the property in order for them to go forward with the purchase agreement.

Closing Costs: All the costs associated with processing the sale of your home.

Closing Disclosure: A 5-page form that provides final details regarding your mortgage loan including the terms, estimated monthly payment, fees and closing costs. Your lender is required to supply you with a copy of all of the closing costs a minimum of 3 days before closing.

Escrow Officer: An unbiased third party who ensures the real estate transaction is correctly carried out by all involved.

Escrow Company: Oversees the terms of a contract and handles all funds, bills and liens related the the transaction.

Insurance Claims History Report: A written report that describes a property’s past insurance claims. Often required by lenders.

MLS (Multiple Listing Service):

PreQualification and Verification of Funds:

Property Disclosures:

Settlement Statement:

Title Company:

The following list is to provide you with a brief overview of some of the most requested inspections that are conducted by Buyers.

Before you select your inspections, share your thoughts and concerns with your REALTOR®, so that they may provide you with additional considerations and make suggestions based on your expressed needs. By communicating openly with your REALTOR®, you can work collaboratively to get the most from your inspections, along with the peace of mind needed for you to decide whether to move forward with your purchase.

All these inspections can be coordinated by your REALTOR® to occur during your Inspection Period when provided with sufficient notice:

• Home Inspection
• Pest/Termite Inspection
• HVAC Inspection
• Sewer/Septic Line Scope
• Roof Inspection
• Pool Inspection
• Additional Inspections:

Additional Inspections:

Lead, Mold, Asbestos, Radon, Water Labs, and other environmental tests are available to be conducted by professionals as well. If you’re curious about something – just ask – there’s probably a way to have it inspected!

How to Get the Most out of Your Home Inspection:

• Notify your REALTOR® of all Inspections you would like to have coordinated as soon as possible*. Due to timeframes and other logistical challenges, it may not be possible to add more inspections after your initially chosen set of inspections are completed.
• Your REALTOR® will coordinate with the Seller and Listing Agent for property access to conduct the inspections.
• Your REALTOR® will coordinate with all the inspectors you choose so they can occur during optimal timeframes, and/or based on the Inspector’s availability.
• Payment for inspections is typically due at time of service. Unpaid invoices can lead to delays or withheld inspection reports.
• Some Home Inspectors offer an in-person Inspection Review Summary at the end of their Inspection so that they can walk the Buyers and their REALTOR® through their findings. Depending on your own availability, we always recommend that you plan to attend these summaries.
• Select Licensed Professionals to perform the Inspections whenever possible. E.g. a licensed roofer to inspect the roof; a licensed pest control company to perform the pest inspection…
• Ask your REALTOR® if they have any recommendations, or for a list of inspectors typically utilized by their other clients! Experienced and past working relationships can facilitate more effective communication, set clear expectations, and deliver better results for everyone involved.

Pro Tip:

Select all the inspections you want to have conducted up-front, so that you don’t exceed your contract’s Inspection Period timeframe. This is a very sensitive time for Sellers (and Buyers!), and Sellers are not always keen on extending the Buyer’s Inspection Period.

Active

Active properties with no offers or contingencies.

Active Contingent

An offer has been accepted but the seller may still be permitting showing appointments and may still accept backup offers.

Pending

An offer has been accepted and the seller is not allowing showing appointments or backup offers.

Pending Short Sale Approval

Seller has accepted an offer and is awaiting short sale approval from the lender.

Signature Pending

Seller has verbally accepted an offer and is pending a signature(s).

Cancellation Provision

There is a provision to cancel the current offer with a replacement offer.

Temp off Market

The seller has requested that the property be temporarily taken off market. Listing may be brought back on market without a new listing agreement.

Expired

Listing agreement has expired.

Canceled

Listing agreement has been canceled.

Closed

Property has been sold.

Coming Soon

A Coming Soon listing is a listing taken by a Participant on a “Listing Agreement” that is, by direction of the Seller to be withheld from public dissemination by the MLS.

What Does it Mean to be a Realtor®.

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

1. AN EXPERT GUIDE.

Buying a home can be a complex process that involves many forms, reports, disclosures, and other legal and financial documents. A knowledgeable REALTOR® can help you navigate this process, prepare the best deal, and circumvent delays or costly mistakes.

2. OBJECTIVE INFORMATION AND RESOURCES.

REALTORS® have tools and resources to help you meet your buying objectives. They can provide objective information on each property such as utilities, zoning, schools, and more. They have access to networks of other local professionals to meet all your real estate needs. REALTORS® maintain an unbiased perspective to keep your objectives in focus.

3. FINDING THE RIGHT PROPERTY.

When you work with a REALTOR®, you receive personalized service and help navigating all steps of the home buying process. To give you every advantage in your home search, REALTORS® have access to the Multiple Listing Service (MLS), which is a database of all the homes for sale in your area. The MLS is largely recognized as the source FOR other online databases, so you can search and evaluate properties confidently, with the most up to-date information available.

4. NEGOTIATION EXPERTISE.

A REALTOR® stands in your corner during all negotiations. They will consider all angles from your perspective to structure and negotiate a purchase agreement that is tailored to your particular needs. As your representative, they will continually work to optimize terms and outcomes to your benefit.

5. UP-TO-DATE EXPERIENCE.

Most people buy only a few homes in a lifetime, usually with quite a few years in between each purchase. Many agents will handle hundreds of transactions over the course of their career. Even if you’ve done it before, laws and regulations change. REALTORS® stay informed and are required to attend continuing education courses regularly.

6. YOUR ROCK DURING EMOTIONAL MOMENTS.

A home is so much more than four walls and a roof. For some, buying a home represents the biggest purchase they’ll ever make. Having a concerned, but objective, trusted REALTOR® on your side helps you stay focused on the issues most important to you.

7. FAIR AND ETHICAL TREATMENT.

REALTORS® adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a client, you can expect honest and ethical treatment in all transaction-related matters.

Communication in the Real Estate Industry is Key to Success

Communication is the key to building trust and rapport with my clients. That is why I always strive to communicate with you in the way that you prefer, whether it is by phone, text, email, or any other channel. You deserve to be treated with respect and care and I want you to feel comfortable and confident when you work with me. I value your time and attention. I know that buying property can be exciting, rewarding and challenging. That is why I will always listen to you attentively, respond to you promptly, and provide you with clear and accurate information.

I want to make your buying experience enjoyable and successful. I also encourage you to ask me any questions you may have about the buying process. I have the knowledge and experience to answer your questions and guide you through every step of the way. If there is something I do not know, I have access to a network of experts who can help me find the answer for you. I want you to be informed and empowered as a buyer.

I am always available for you whenever you need me. You can reach me anytime during my working hours. If you have an urgent issue or a special request, please let me know and I will do my best to accommodate you. You can also schedule a call or a meeting with me in advance if you prefer. I am flexible and adaptable to your needs and preferences. You are my priority, and I will always go the extra mile for you.

What is an Encumbrance in Real Estate?

An Encumbrance is any claim against an asset by an entity that is not the owner. For example; liens, easements, leases, mortgages, or restrictive covenants. Encumbrances impact the transferability and/or use of subjected properties. Not all of these encumbrances will prevent a property from going under contract. Easements often transfer with the property during a sale, however, if the easement has not been recorded properly, this can cause disputes during sales. Mortgages do not prevent the sale of property as they are dealt with during the transaction by the title company and the mortgage lender to make sure any pending mortgage is paid in full at closing, but if a seller is delinquent on their mortgage, this will prevent the sale of the property until any back debt is resolved.

Liens against a property will cause big issues during the selling process. Any future buyer does not want to have problems from debt collectors or lien holders after the sale. Therefore, the title company will flag any liens against the property and those debts must be satisfied before the sale can be finalized.

An Encumbrance is any claim against an asset by an entity that is not the owner. For example; liens, easements, leases, mortgages, or restrictive covenants. Encumbrances impact the transferability and/or use of subjected properties. Not all of these encumbrances will prevent a property from going under contract. Easements often transfer with the property during a sale, however, if the easement has not been recorded properly, this can cause disputes during sales. Mortgages do not prevent the sale of property as they are dealt with during the transaction by the title company and the mortgage lender to make sure any pending mortgage is paid in full at closing, but if a seller is delinquent on their mortgage, this will prevent the sale of the property until any back debt is resolved.

Liens against a property will cause big issues during the selling process. Any future buyer does not want to have problems from debt collectors or lien holders after the sale. Therefore, the title company will flag any liens against the property and those debts must be satisfied before the sale can be finalized.

Are you in the market to purchase a property in Southern Arizona? Of course, there are many things to consider before you even start seriously looking. Do you have financing in place? Many real estate agents will not even consider showing houses unless the potential buyer has a pre-qualification letter from a lender. And some won’t unless the buyer has a pre-approval letter.

What is the difference between a prequal and a pre-approval?

Prequalification From a Lender Means…

A prequalification letter simply means that you have discussed your plans to purchase a home with a lender and the lender has given you a ballpark price that you MAY qualify for. This is not a concrete dollar amount and often the Pre-Approval will vary from the guestimate of a prequal. A prequal is only based on your income and major bills to arrive at a ballpark figure you may qualify for. A prequal is a good place to start if you have no idea how much of a home you can afford. It will give you a place to start in your financial planning.

Pre-Approval From a Lender Means…

A preapproval goes into much more depth than a prequal. The lender will look at your credit history, debt to income ratio, spending habits, income, assets and anything that will give them a more solid basis as to what you can afford. Even this is not written in stone. When the underwriters start processing your loan request, many things can change along the way to influence your final loan amount.

A preapproval letter is a very good thing to have in hand before you even start to look at homes. It will give you a better picture of what you can afford in reality so you know what price range to start looking in and it will allow you to make an offer on a home that much quicker because you will have already started the preliminary loan process which will save you and the lender a great deal of time when you find a home you like.

What’s Next in the Homebuying Process.

Getting the loan process started is the biggest piece of the homebuyers responsibilities and having that piece in place will lighten the stress and paperwork burden when you start looking at properties. You will have a pretty solid idea of what you can afford to look at and can plan your search accordingly rather than wasting time on homes that are not in your price range.

Once you have financing pretty much secured, all that leaves for you is to find a property you like and then go through the inspections and property verification processes. During this time it’s very important to follow your buyer’s checklist from your agent and make sure you stay on schedule with the necessary deadlines for paperwork. Failing to meet a deadline could result in a breach of contract on your part and on top of possibly losing the property you want and your earnest money , there may be legal consequences and fines for missing a deadline.

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