John Allens and Amber Schatz
2 hours ago
BISMARCK, N.D. (KXNET) – The Bismarck-Mandan real estate market is down to just 209 active listings, with 14 new listings and 34 homes closed or on hold. Local real estate agent Jeff White expects more homes to be built next week as the weather warms up this week.
On a different note, dealing with real estate agents can sometimes be confusing. Words and acronyms are used frequently and can lead to confusion if you don't take the time to explain them clearly. To help clear up some of the confusion, White explains some of the acronyms and words commonly used in the home-hunting process.
CMA or Comparative Market Analysis
- This is a phrase often heard when considering selling a home. This is put together by your real estate agent to let you know what they think your home should cost based on comparable homes in your area. This is not an evaluation.
PMI or private mortgage insurance
- This is a fee added to your mortgage if you make a down payment, usually less than 20% of the property's value. It also takes into account your credit history. This insurance kicks in if you default on your loan and covers the difference between your down payment and 20% of your mortgage. So if you pay 5%, it covers an additional 15% until you reach 20%.
serious deposit
- A deposit is money you pay when you make an offer on a property. It shows how serious you are about purchasing the property. Mr White said there was no set amount required for the earnest money deposit, but it was usually paid based on the price of the property. This earnest money deposit basically tells the seller that you, as the buyer, are willing to let them keep the money if you decide to back out of the sale.
unforeseen circumstances
- Contingency means buying real estate, but it depends on XYZ. The most common contingency is an inspection. This allows the buyer to cancel the purchase contract if the contingency is not met. For example, if the inspection reveals some unforeseen issues that you, as a buyer, don't want to deal with, you have the right to back out of the deal as long as there are contingencies to the inspection.
lender or mortgage banker
- This is the individual and/or financial institution funding the purchase of the property.
Click here for more real estate information from Jeff White.
