anderson sc homes for sale

Buying Selling Tips

Top 10 Seller Mistakes Article

home selling tips anderson scHow to avoid the 10 most common mistakes made by home sellers

Selling a home is an experience many people look forward to with about as much enthusiasm as a root canal or an IRS audit. Perhaps it is because they know that with such an important investment, one misstep or wrong turn could be more than a "learning experience." Making a mistake in selling a home can be a costly blunder that not only jeopardizes the sale, but also can mean hundreds or thousands of dollars in lost profit.

What many people do not know is there is an easy way to avoid making the mistakes most commonly involved in selling a home. In fact, many homeowners make some of the same errors when selling their home, no matter how many homes they've sold in the past. In some cases, the mistakes just make the selling process more tedious. In others, they are fatal to the sale. By understanding these mistakes, home sellers can arm themselves with information and gain a better chance of achieving a profitable sale.

1. Limiting the home’s accessibility.
Buyers want to view a home when they want to view it. Be flexible with your home showings.  The showing that you turn down or put off could have been the showing that sells your home.

tips on selling your home2. Panic selling.
In some instances, selling quickly is unavoidable. That is when it pays to know the right techniques to get your home to sell fast without looking desperate and making yourself a prime target for low-ball bidders.  Sometimes, however, panic selling is a result of poor planning up front. By knowing all the ins and outs of selling before you put your home on the market and working hand-in-hand with the right real estate professional, you can make sure you don't wind up backed against the wall and settling for the first offer that comes along.

3. "My home is the nicest on the block" syndrome.
Devotion is wonderful, but blindness to your home's flaws and cosmetic problems can make you overvalue your home, hurting its chances on the market.

4. Letting emotions rule.
In the heat of making a deal, it's easy to get caught up in wringing that last $500 out of the buyer, instead of backing up, taking a deep breath, and looking at the big picture. "Sellers should not haggle and maybe lose a sale over a small amount of money".

5. Failure to disclose property flaws.
Sellers today are required to comply with property disclosure laws. Often it is not just what you know about what's wrong with your home, but what you do not know that can hurt you. You should understand what the laws are for your area and where to find the qualified inspectors you need to help you meet those requirements. If you risk covering up flaws or ignoring disclosure laws, you not only risk the sale of your home; you risk finding yourself in court.

paint your home before you sell6. Unwillingness to make cosmetic improvements.
Making changes to your home such as new carpet, repainting rooms with bold colors or even landscaping can add value to your home and make for a faster sale.  The $1,500 you spend updating your home might make you $5,000 when your home closes.  Have a friend, neighbor or a realtor look at your home for possible improvments to make your home sell faster.  Don't be offended by any suggestions that are made, in the end you do want your home to sell faster and sometimes it takes a pair of "fresh eyes" to bring your attention to things you see everyday.

7. Telling your agent how to do his or her job.
Listen to your agent for advice if your home isn't selling quickly.  They know the areas, average price ranges and also hear the feedback from showing to your home.  Ask your agent for feedback when your home is shown so you can find out what people are saying about your home.

8. Doing it your self -- at any cost.
In real estate as in life, everything has a price. The majority of homeowners who decide to sell their homes hemselves do so because they believe they can save money by not having to pay commission to a real state agent. However, many times those homeowners find that the true cost of selling a home themselves is found in the enormous amount of time and effort they must spend to do it, or worse, they wind up paying  even more money repairing a costly mistake that could have been avoided with the right guidance.

Selling a home really is a full-time job. Make sure you are aware of all the pros and cons before you decide to try and do it yourself.

reduce your price on your house9. Bad pricing strategies.
Some homes that dc not sell quickly may have been priced too high to begin with.   On the other hand, other homes may sell quickly but their owners may have been cheated out of their full profit because they were priced too low. Sellers need to understand what is happening in the local real estate market and evaluate the true value of their homes based on hard, cold facts, not gut instinct or conventional wisdom.

10. Selecting the wrong REALTOR.
People often pick a friend or family member as their agent. What they should be doing is choosing the most  successful, experienced agent in the area with the strongest track record of customer satisfaction. Highly successful agents have many contacts with buyers and know the market well.

 
 

Getting Your Home Ready

First impressions are not just for people, they are just as important when you are trying to sell your house. You want your potential buyer to walk away with a good impression. There are several easy, quick and low cost things you can do to increase your chances of getting your asking price and selling quickly. When people make an investment commitment as big as a house, they can be picky, and seek perfection. You can be proactive and make it an enjoyable experience by being ready.

  • If you are showing in the spring or summer make sure to have the lawn and landscaping looking nice. Mowing the lawn, pruning and weeding cost nothing, but can make a big difference by looking kept up and cared for. Most people assume that if you take care of the yard, chances are, you take care of the house.
  • Making sure that there is no chipped paint can make a big difference too. If your house was built before 1978, there is a new federal law that requires the seller to complete a lead base paint disclosure statement. Be proactive in this area as well. Have the inspection done beforehand, it looks good to the prospective buyer, and it saves time.
  • Really clean your house before you show it. It’s simple and free, and it can make all the difference in the world. Cleaning windows inside and out can be one step that people forget, but after the winter months, it’s imperative to make the house look as clean as possible. The bathroom is another area where people seem to make judgments, so make sure your bathrooms are spotless!
  • Set an ambiance. Studies have shown that soothing smells in the house can help make a house seem more like a home. Like baking cookies, cakes or pies, and even spaghetti. People like to be reminded of good memories, and cooking and baking has shown to do that. Also think about playing some soft background music and light candles if you are present when the buyers are viewing your house. This makes the place seem cozy and inviting. Small little touches can make all the difference on attracting a buyer!

Selling Quick & Easy in Anderson SC

selling your home anderson scWhat is Your Home Worth?

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When you are selling a house, price, condition and exposure are usually the three most important factors. This is especially true in a down market.

Price

Your asking price is based on two things, an appraisal and a comparative market analysis. A certified appraiser performs the appraisal; this is an estimate of the value of your house at a given time. The real estate agent does the comparative market analysis; this is an informal estimate based on comparative homes in your neighborhood. These two sources need to be kept in mind when determining your asking price. You want to be careful not to start too high, or come down too low. Also, the market is always changing and fluctuating, so be sure that your asking price is based on the most recent appraisal and comparative market analysis. Your real estate agent can help you price your house so that it will be attractive to buyers.


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Condition

Making sure that all cosmetic defects are repaired before showing your house can help you save time by not losing a buyer over a small repair that could have been easily fixed prior to the showing. This is especially important when in a buyer’s market. When buyer competition is low, buyers are able to be pickier about their new home and can be easily turned off by simple repairs. The better the condition of your house in relation to your asking price, the faster it will sell.

sell your house in anderson scExposure

Once your house is priced attractively and all minor cosmetic repairs have been fixed, it is time to talk about exposure. You could have the most beautiful home with a reasonable asking price, but if no one knows about it, neither price nor condition will matter!

Your real estate agent can expose your home through open houses; broker open houses, advertising in the newspaper, and by listing it on the multiple listing service. All of these things are part of the service of having your own personal professional real estate agent.

What is Your Home Worth?

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Sell it Faster Tip Gallery

This section will show you many things that potential home buyers don't find appealing.  These are things that can be changed to increase the value and make a home sell faster.

In this photo the wall is a turquoise blue.  Although some may like this room, it could be a potential turn off for some buyers.  In this case the entire atmosphere of this room could be changed by painting it a netural earth tone colors.  Remembers buyers like to be able to visualize their furniture in your home and a color like this could be a show stopper. 
 
Painting Paneling
Some older home have dark paneling.  You can see in this photo that you can prime and paint the dark paneling to make a room look brighter and more updated.  This is a low cost alternative to replacing the paneling with drywall.
 
Home Selling Tips
If you have dated or dirty carpet, clean or replace it before putting your home on the market.  A buyer may be turned off by a home they feel needs to be fixed up.
 
More Helpful Photos Coming Soon! 

 

 

Real Estate Dictionary Anderson SC

real estate terms anderson scA

Abandonment

The voluntary relinquishment of rights of ownership or another form of interest (an easement) by failure to use the property over an extended period of time.

Abstract (Of Title)
A summary of the public records relating to the title to a particular piece of land. An attorney or title insurance company reviews an abstract of title to determine whether there are any title defects which must be cleared before a buyer can purchase clear, marketable, and insurable title.

Acceleration Clause
Condition in a mortgage that may require the balance of the loan to become due immediately, if regular mortgage payments are not made or for breach of other conditions of the mortgage.

Acceptance
Refers to a legal term denoting acceptance of an offer. A buyer offers to buy and the seller accepts the offer

Acre
A measure of land, equal to 160 sq. rods (43,560 sq.ft.). An acre is approximately 209' x 209'.

Acknowledgment
A formal declaration before an authorized official (usually a notary public) by a person who has executed a document, that he did in fact execute (sign) the document

Addendum
Something added. A list or other items added to a document, letter, contract, escrow instructions, etc.

Adverse Possession
A method of acquiring title by open and notorious possession which usually varies by state.

Alienation Clause
A clause within a loan instrument calling for payment of a debt in its entirety upon the transfer of ownership of the secured property. Also called a "due on sale" clause.

Agent
Acts on behalf of another, representing that person's interests and serving as an intermediary.

Agreement of Sale
Known by various names, such as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller agrees to sell and a buyer agrees to buy, under certain specific terms and conditions spelled out in writing and signed by both parties.

Amortization
A payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal.

Appraisal
An expert judgment or estimate of the quality or value of real estate as of a given date.

Assessed Value
Value placed on property by the tax assessor.

Assessment
The valuation of property for the purpose of levying a tax, or the amount of the tax levied.

Assessor
One appointed to assess property for taxation.

Assignment
A transfer or making over to another the whole of any property, real or personal, or of any estate or right therein. To assign is to transfer.

Assumption of Mortgage
An obligation undertaken by the purchaser of property to be personally liable for payment of an existing mortgage. In an assumption, the purchaser is substituted for the original mortgagor in the mortgage instrument and the original mortgagor is to be released from further liability in the assumption. The mortgagee's consent is usually required

Attachment
Seizure of property by court order, usually done in pending law suit to make property available in case of judgment.

B

Balloon Payment
The final installment paid at the end of the term of a note; used only when preceding installments were not sufficient to pay off the note in full.

Bill of Sale
An instrument used to transfer personal property

Blanket Mortgage (Trust Deed)
A single mortgage or trust deed which covers more than one piece of real estate

Bond
An insurance agreement by which one party is insured against loss or default by a third party. In the construction business a performance bond ensures the interested party that the contractor will complete the project. A bond can also be a method of financing debt by a government or corporation which is interest-bearing and has priority over stock in terms of security.

Breach
Violation of an obligation in a contract

Binder or "Offer to Purchase"
A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded.

Broker, Real Estate
An agent licensed by the state to carry on the business of operating in real estate. He usually receives a commission for his services of bringing together buyers and sellers, owners and tenants, in exchange agreements.

Building Code
A set of stringent laws that control the construction of buildings, design, materials and other similar factors

Building Line or Setback
Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.

Built-Ins
Items that are not movable, such a stoves, ovens, microwave ovens, dishwashers.

Buyers Market
A market condition which occurs in real estate where more homes are for sale than there are interested buyers

 

C

Capital Gains
A term used for income tax purposes which represents the gain realized from the sale of an asset less the purchase price and deductible expense.

Capitalization
An appraising term used in determining value by considering net operating income and a percentage of reasonable return on investment.

Cash Flow
The owner's spendable income after operating expenses and debt service is deducted

Chain Of Title
A history of conveyances and encumbrances affecting the title as far back as records are available

Client
One who employs another's services, as in an attorney, real estate agent, insurance agent, etc.

Closing
In the sale of real estate it is the final moment when all documents are executed and recorded and the sale is complete. Also a general selling term where a sales person is attempting to sell something and the buyer agrees to purchase

Certificate of Title
A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as that offered in a title insurance policy.

Closing Costs
The numerous expenses which buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to price of the property and are items prepaid at the closing day.

Closing Statement
A list of the final accounting of all monies of both buyer and seller prepared by an escrow agent which notes all costs each must pay at the completion of a real estate transaction.

Cloud (On Title)
An outstanding claim or encumbrance which adversely affects the marketability of title.

Commission
Money paid to a real estate agent or broker by the seller as compensation for finding a buyer and completing the sale. Usually it is a percentage of the sale price- often 5 to 7 percent on houses, 10 percent on land.

Common Area
That area owned in common by owners of condominiums and planned site development homes within a subdivision.

Community Property
Both real and personal property accumulated by a husband and wife after marriage through joint efforts of both living together.

Condemnation
A declaration by governing powers that a structure is unfit for use.

Conditional Sales Contract
A contract for the sale of property where the buyer has possession and use, but the seller retains title until the conditions of the contract have been fulfilled. Also known as a land contract.

Co-Op Housing
An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock.

Condominium
Individual ownership of a dwelling unit and an individual interest in the common areas and facilities which serve the multi- unit project.

Consideration
Anything of value given to induce someone into entering into a contract.

Construction Loan
The short-term financing of improvements on real estate. Once the improvements are completed a 'take out' loan for a longer term is usually issued.

Contingency
A condition upon which a valid contract is dependent. For example; the sale of a house is contingent upon the buyer obtaining adequate financing.

Contract
An agreement between two or more parties, written or oral, to do or not to do certain things.

Conveyance
The transfer of the title to land from one to another.

Contractor
In the construction industry, a contractor is one who contracts to erect buildings or portions of them. There are also contractors for each phase of construction: heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, and others.

Conventional Mortgage
A mortgage loan not insured by HUD or guaranteed by the Veterans' Administration. It is subject to conditions established by the lending institution and State statutes. The mortgage rates may vary with different institutions and between States. (States have various interest limits.)

Counter Offer
An offer in response to an offer. 'A' offers to buy 'B's' house for $20,000 which is listed for $22,000. 'B' counter offers 'A's' offer by stating that he will sell the house to 'A" for $21,000. The $21,000 is the counter offer.

Covenants
Agreements written into deeds and other instruments stating performance or non-performance of certain acts or noting certain uses or non-uses of property.

D

Deed
A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. (See also deed of trust, general warranty deed, quitclaim deed, and special warranty deed.)

Default
Failure to make mortgage payments as agreed to in a commitment based on the terms and at the designated time set forth in the mortgage or deed of trust. It is the mortgagor's responsibility to remember the due date and send the payment prior to the due date, not after. Generally, thirty days after the due date if payment is not received, the mortgage is in default. In the event of default, the mortgage may give the lender the right to accelerate payments, take possession and receive rents, and start foreclosure. Defaults may also come about by the failure to observe other conditions in the mortgage or deed of trust.

Depreciation
Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or any other reason.

Documentary Stamps
A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State.

Down Payment
The amount of money to be paid by the purchaser to the seller upon the closing. The agreement of sale will refer to the down payment amount. Downpayment is the difference between the sales price and maximum mortgage amount.

E

Earnest Money
The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the downpayment. If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable.

Easement Rights
A right- of- way granted to a person or company authorizing access to or over the owner's land. An electric company obtaining a right- of- way across private property is a common example.

Economic Obsolescence
Loss of useful life and desirability of a property through economic forces, such as change in zoning, changes in traffic flow, etc., rather than deterioration.

Encroachment
An obstruction, building, or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line.

Encumbrance
A legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it.

Escalation Clause
A clause in a lease providing for an increased rent at a future time due to increased costs to lessor, as in cost of living index, tax increases, etc.

Escheat
The reverting of property to the state in the absence of heirs.

Estate
The ownership interest of a person in real property. Is also used to refer to a deceased person's property. And often used to describe a large home with spacious grounds

Equity
The value of a homeowner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. A homeowner's equity increases as he pays off his mortgage or as the property appreciates in value. When the mortgage and all other debts against the property are paid in full the homeowner has 100% equity in his property.

Escrow
Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual. In FHA mortgage transactions an escrow account usually refers to the funds a mortgagor pays the lender at the time of the periodic mortgage payments. The money is held in a trust fund, provided by the lender for the buyer. Such funds should be adequate to cover yearly anticipated expenditures for mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments.

F

Fair Market Value
That price a property will bring given that both buyer and seller are fully aware of market conditions and comparable properties.

Foreclosure
A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property, and depriving the mortgagor of possession.

Fee Simple
Ownership of title to property without any limitation, which can be sold, left at will, or inherited.

Front Footage
The linear measurement along the front of a parcel. That portion of the parcel which fronts the street or walkway.

Functional Obsolescence
Loss in value due to out-of-date or poorly designed equipment while newer equipment and structures have been invented since its construction.

Fixtures
Items affixed to buildings or land usually in such a way that they cannot be moved without damage to themselves or the property, such as plumbing, electrical fixtures, trees, etc.

 

G

General Warranty Deed
A deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable.

Grantee
That party in the deed who is the buyer or recipient.

Grantor
That party in the deed who is the seller or giver.

Ground Lease
A lease of vacant land

H

Hazard Insurance
Protects against damages caused to property by fire, windstorms, and other common hazards.

Home Owners Association
An association of homeowners within a community formed to improve and maintain the quality of the community. An association formed by the developer of condominiums or planned developments.

HUD
U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes.

I

Interest
A charge paid for borrowing money. (See mortgage note)

Intestate
A person who dies without making a will.

Involuntary Lien
A lien which attaches to property without the consent of the owner such as tax liens as opposed to voluntary liens (mortgages).

J

Joint Tenancy
Joint ownership by two or more persons with right of survivorship. Upon the death of a joint tenant, his interest does not go to his heirs, but to the remaining joint tenants.

L

Lease
A contract between the owner of real property, called the lessor, and another person referred to as the lessee, covering all conditions by which the lessee may occupy and use the property.

Lease With Option To Purchase
A lease where the lessee has the option to purchase the leased property. The terms of the purchase option must be set forth in the lease.

Legal Description
The geographical identification of a parcel of land

Lessee
One who contracts to rent property under a specified lease.

Lessor
An owner who contracts into a lease with a tenant (lessee).

Lien
A claim by one person on the property of another as security for money owed. Such claims may include obligations not met or satisfied, judgments, unpaid taxes, materials, or labor. (See also special lien.)

Life Estate
An estate in real property for the life of a person

Listing
A contract between owner and broker to sell the owner's property

 

M

Marketable Title
A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.

Mechanic's Lien
A lien created by statute on a specific property for labor or materials contributed to an improvement on that property.

Mortgage
A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off.

Mortgage Commitment
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.

Mortgage Insurance Premium
The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one- half of one percent paid by the mortgagor on a monthly basis.

Mortgage Note
A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.

Mortgage (Open-End)
A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than would raise the balance to the original loan figure.

Mortgagee
The lender in a mortgage agreement.

Mortgagor
The borrower in a mortgage agreement.

Multiple Listing
A listing taken by a member of an organization of brokers, whereby all members have an opportunity to find a buyer.

N

Negative Amortization
When monthly payments are not enough to cover interests costs, they are added to the principal balance, and you may end up owing more than when you started. This is most likely to occur with ARMs that have payment caps.

Notary Public
One who is authorized by federal or local government to attest authentic signatures and administer oaths.

Note
A written instrument acknowledging a debt and promising payment

O

Offer
A presentation to form a contract or agreement.

Origination Fee
Application fee(s) for processing a proposed mortgage.

Option
A right given, for consideration, to purchase or lease property upon stipulated terms within a specific period of time

 

P

Plat
A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

P.M.I. (Private Mortgage Insurance)
Insurance which covers a portion of the first mortgage allowing the lender to offer more lenient terms to a borrower.

Points
Sometimes called "discount points." A point is one percent of the amount of the mortgage loan. For example, if a loan is for $25,000, one point is $250. Points are charged by a lender to raise the yield on his loan at a time when money is tight, interest rates are high, and there is a legal limit to the interest rate that can be charged on a mortgage. Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.

Prepayment
Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment. The Federal Housing Administration does not permit such restrictions in FHA insured mortgages.

Prepayment Penalty
A penalty within a note, mortgage, or deed of trust imposing a penalty if the debt is paid in full before the end of its terms.

Principal
The basic element of the loan as distinguished from interest and mortgage insurance premium. In other words, principal is the amount upon which interest is paid.

Purchase Agreement
An agreement between buyer and seller denoting price and terms of the sale.

 

R

Real Estate Agent
A licensed person who works under the direction of a broker selling and renting real estate.

Real Estate Broker
A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.

Realtor
A real estate broker holding membership in a real estate board affiliated with the National Association Of Realtors.

Refinancing
The process of the same mortgagor paying off one loan with the proceeds from another loan.

Restrictive Covenants
Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.)

S

Sales Agreement
See agreement of sale.

Seller's Market
More buyers than sellers.

Special Assessments
A special tax imposed on property, individual lots or all property in the immediate area, for road construction, sidewalks, sewers, street lights, etc.

Special Lien
A lien that binds a specified piece of property, unlike a general lien, which is levied against all one's assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person's behalf. In some localities it is called "particular" lien or "specific" lien. (See lien.)

Special Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee's title.

State Stamps
See documentary stamps

Survey
A map or plat made by a licensed surveyor showing the results of measuring the land with its elevations, improvements, boundaries, and its relationship to surrounding tracts of land. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.

T

Tax
As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.

Title
As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate.

Title Insurance
Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to a "mortgagee's title policy." Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an "owner's title policy", if he desires the protection of title insurance.

Title Search or Examination
A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title.

Trustee
A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. (See deed of trust.)

 

V

Variable Interest Rate
A fluctuating interest rate which can go up or down depending on the going market rate.

Voluntary Lien
A voluntary lien by the owner such as a mortgage, as opposed to involuntary liens (taxes).

W

Waive
To relinquish, or abandon. To forego a right to enforce or require anything.

Wrap-Around Mortgage
A second mortgage which is subordinate to but includes the face value of the first mortgage.

Z

Zoning Ordinances
The acts of an authorized local government establishing building codes, and setting forth regulations for property land usage.