Home Buyer Basics

10 Steps to Home Ownership

1. Step 1: Are You Ready?

Real Estate Lingo & Acronyms

Real estate ads are usually full of acronyms and terms that are unfamiliar to first-time buyers. Here’s a cheat sheet to help you with the lingo.

• 4B/2B — Four bedrooms and two bathrooms. “Bedroom” usually means a sleeping area with a window and a closet, but the definition varies in different places. A “full bathroom” is a room with a toilet, a sink and a bathtub. A “three-quarter bathroom” has a toilet, a sink and a shower. A “half bathroom” or powder room has only a toilet and a sink.
• Buyer’s Agent – Using a buyer’s agent means your REALTOR is working with your best interests in mind. A buyer’s agent will work to negotiate the best price and make sure you have the representation you need. Things you tell a buyer’s agent remain confidential. Using a buyer’s agent also means that you will be shown homes that are For Sale By Owner (FSBO).
• CC&Rs — The covenants, conditions and restrictions (CC&Rs) are the governing documents that dictate how the homeowners association operates and what rules the owners — and their tenants and guests — must obey.
• Closing Costs — The entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid through escrow.
• CLA — “Call listing agent”
• CMA — Comparative market analysis or competitive market analysis. A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.
• Contingency — A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer’s contractual right to obtain a professional home inspection before purchasing the home.
• DOM/CDOM — DOM=Days on Market: From listing day until Sold day.
  CDOM=Cumulative Days on Market: Indicates the total Days on the market should the property have been removed temporarily from the market and put back on.
• FDR — Formal dining room
• Fixture — Anything of value that is permanently attached to or a part of real property. (Real estate is legally called “real property,” while movables are called “personal property.”) Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.
• HOAs – Home owner association dues.
• Listing — An agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owner’s home. The word “listing” is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn’t a “listing.”
• Lock Box — Locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent
• MLS — Multiple Listing Service. An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Membership isn’t open to the general public, although selected MLS data may be sold to real estate listings Web sites. MLSs are local or regional. There is no MLS covering the whole country.
• OWC — A term indicating the willingness of a seller of real property to extend financing to a qualified buyer. The financing may take the form of a first trust deed or secondary financing. It may be short or long term.
• REALTOR® — A real estate broker or sales associate who is a member of the National Association of REALTORS®. Not all real estate agents are REALTORS®.