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BUYERS
FREQUENTLY ASKED QUESTIONS
What
do all of those real estate acronyms in the ads mean?
If
you find yourself stumbling over weird acronyms in a real estate
listing, don't be alarmed. There is method to the madness of this
shorthand (which is mostly adopted by sellers to save money in
advertising charges). Here are some abbreviations and the meaning
of each, taken from a recent newspaper classified section:
- assum.
fin. -- assumable financing
- dk
-- deck
- gar
-- garage (garden is usually abbreviated "gard")
- expansion
pot'l -- may be extra space on the lot, or possibly vertical
potential for a top floor or room addition. Verify actual potential
by checking local zoning restrictions prior to purchase.
- fab
pentrm -- fabulous pentroom, a room on top, underneath the roof,
that sometimes has views
- FDR
-- formal dining room (not the former president)
- frplc,
fplc, FP -- fireplace
- grmet
kit -- gourmet kitchen
- HDW,
HWF, Hdwd -- hardwood floors
- hi
ceils -- high ceilings
- In-law
potential -- potential for a separate apartment. Sometimes,
local zoning codes restrict rentals of such units so be sure
the conversion is legal first.
- large
E-2 plan -- this is one of several floor plans available in
a specific building
- lsd
pkg. -- leased parking area, may come with an additional cost
- lo
dues -- find out just how low these homeowner's dues are, and
in comparison to what?
- nr
bst schls -- near the best schools
- pvt
-- private
- pwdr
rm -- powder room, or half-bath
- upr-
upper floor
- vw,
vu, vws, vus -- view(s)
- Wow!
-- better check this one out.
How
do I get the real scoop on homes I am looking at?
Home
inspections, seller disclosure requirements and the agent's experience
will help. Disclosure laws vary by state, but in some states,
the law requires the seller to complete a real estate transfer
disclosure statement. Here is a summary of the things you could
expect to see in a disclosure form:
- In
the kitchen -- a range, oven, microwave, dishwasher, garbage
disposal, trash compactor.
- Safety
features such as burglar and fire alarms, smoke detectors, sprinklers,
security gate, window screens and intercom.
- The
presence of a TV antenna or satellite dish, carport or garage,
automatic garage door opener, rain gutters, sump pump.
- Amenities
such as a pool or spa, patio or deck, built-in barbeque and
fireplaces.
- Type
of heating, condition of electrical wiring, gas supply and presence
of any external power source, such as solar panels.
- The
type of water heater, water supply, sewer system or septic tank
also should be disclosed.
Sellers
also are required to indicate any significant defects or malfunctions
existing in the home's major systems. A checklist specifies interior
and exterior walls, ceilings, roof, insulation, windows, fences,
driveway, sidewalks, floors, doors, foundation, as well as the
electrical and plumbing systems.
The
form also asks sellers to note the presence of environmental hazards,
walls or fences shared with adjoining landowners, any encroachments
or easements, room additions or repairs made without the necessary
permits or not in compliance with building codes, zoning violations,
citations against the property and lawsuits against the seller
affecting the property.
Also
look for, or ask about, settling, sliding or soil problems, flooding
or drainage problems and any major damage resulting from earthquakes,
floods or landslides. People buying a condominium must be told
about covenants, codes and restrictions or other deed restrictions.
What's
a house worth?
A
home ultimately is worth what someone will pay for it. Everything
else is an estimate of value. To determine a property's value,
most people turn to either an appraisal or a comparative market
analysis.
An
appraisal is a certified appraiser's estimate of the value of
a home at a given point in time. Appraisers consider square footage,
construction quality, design, floor plan, neighborhood and availability
of transportation, shopping and schools. Appraisers also take
lot size, topography, view and landscaping into account. Most
appraisals cost about $300.
A
comparative market analysis is a real estate broker's or agent's
informal estimate of a home's market value, based on sales of
comparable homes in a neighborhood. Most agents will give you
a comparative market analysis for free.
You
can do your own cost comparison by looking up recent sales of
comparable properties in public records. These records are available
at local recorder or assessor offices, through private real estate
information companies or on the Internet.
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.
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