What is a Competitive Market Analysis (CMA)?

The most reliable indicator of a home's value is what similar homes sold for in the past. A CMA is a comparison of the prices of recently sold homes that are similar to the “subject home” in terms of location, style, condition and amenities.

What is Multiple Listing Service (MLS)?

MLS is a computer database for Realtors in a metro area. The database is compiled of detailed information on homes both for sale, under contract and sold. This is a tool Realtors use to produce a CMA, search for properties that a buyer is looking for, and to market their listings to other Realtors.

What is Dual Agency?

When a Broker is representing both the Buyer and a Seller of real property. The broker is not acting in a “designated” agency capacity.

Who pays the Realtor?

The seller pays the Realtor's commission. Generally, the agent who lists the house “for sale” and the agent who “procures the buyer,” split the commission. The commission is paid at closing and taken out of the seller's proceeds.

Who pays for a home inspection?

The buyer hires and pays for an inspector.

What is earnest money?

Money deposited by a buyer under the terms of a contract, as good faith money, to be forfeited if the buyer defaults according to the contract terms, but applied to the purchase price if the sale is closed.

What are closing costs?

Closing costs are the miscellaneous expenses that are incurred during the loan process.

How many different fees are included in “closing costs”?

You may see these on the closing statement and your “good faith estimate”. Appraisal Fee, Credit Report Fee, Document Processing Fee, Loan Document Viewer, Flood Certification Processing Fee, Lender Underwriting Fee, Tax Service Processing Fee, Wire Processing fee, Title Insurance, Title Exam Fees, Recording Fees, Attorney Fees, and Transfer Taxes.

Who pays for closing costs?

The party who pays for closing costs is negotiable in the contract, but it is assumed that the buyer will pay for them unless it is negotiated in the contract for the seller to pay or help with a portion of them. The total costs could vary, but a good estimate is 2.8% of the loan amount. Ask your lender to be sure!

What is a Sellers Disclosure?

It is a questionnaire that the seller fills out that gives the buyer the history of the home.