Episode 29: Listen Up Homebuyers – Real Estate Terms Explained

Episode Summary

What is a down payment, earnest money deposit, fair market value, market value, and assessed value? What does an appraiser do and why would I need an appraisal? What is post-occupancy? All this is explained and more during this short conversation with attorney & broker Rich Rosa, the president of the National Association of Exclusive Buyer Agents.

Episode Notes

:50 Overview of common definitions in real estate with Rich Rosa president of the National Association of Exclusive Buyer Agents & Victoria Ray Henderson

What is a down payment, earnest money deposit, fair market value, market value, and assessed value

1:11 Rich Rosa on deposits and how they work in the Boston, Rhode Island areas

1:40 the two contract processes in Massachusetts

1:53 what is a purchase of sale agreement?

2:27 FHA loan you’ll put 3.5% down payment

2:37 first time home buyer programs in Massachusettes

2:47 VA Loans

Earnest Money Deposit and the Deposit

3:13 Earnest Money Deposit in the Washington DC Baltimore areas

3:53 What happens to the earnest money deposit if the transaction falls apart?

4:28 In the Massachusetts area it’s different

5:02 at some point you are in the transaction and you cannot wake up the morning of closing and say, “I’m not buying the house”

5:35 Listing office holds the deposit in Massachusetts

7:00 Rich talks about the down payment which is different from the deposit

8:55 Difference between pre-qualification and pre-approval

9:54 Pre-Offer Loan Commitment explained

10:45 When would you waive an appraisal contingency?

11:20 Buffet table example of the options available to home buyers

12:03 What is an underwriter?

13:00 What is a use of occupancy agreement or a post-occupancy agreement?

14:00 What are the limits of the post-occupancy agreement?

15:25 How should a property be delivered to the buyers? What is the meaning of broom clean and free of debris?

16:24 Fair market, assessed value, and appraised value, what are the differences?

16:53 Rich on tax assessments

17:45 What is an appraisal?

18:23 What is a comparative market analysis?

19:08 How does an appraiser appraise a property?

19:36 What is an appraisal contingency?

20:44 Maryland Homestead Tax Credit

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