There are many confusing terms in the home buying and selling process. Before you start your search on REIN.com for the perfect home, educate yourself on industry lingo with these terms.
MLS: If you’ve ever bought or sold a home, you’ve probably used the Multiple Listing Service (MLS), even if you don’t know it. The MLS is where nearly all information about homes for sale and historical sale prices originates and where agents work together to get homes bought and sold fairly and efficiently. REIN(Real Estate Information Network) is the MLS in Hampton Roads.
Broker: The road to finding your perfect home includes many key players. The real estate broker is a real estate agent who has taken their education to the next level in order to receive a state real estate broker license. They can work as independent agents or have agents who work for them. These individuals hold the titles such as Managing Broker or Principal Broker and oversee the agents at their particular office or firm. They are trained to know the ins and outs of real estate law. Agents who pass the broker exam but choose to work under another broker will have the title of Associate Broker. In Hampton Roads, the broker is the member of the Multiple Listing Service (REIN), and therefore, so are their agents.
Agent: A real estate agent is one who has passed their state’s real estate licensing exam and is a part of a local brokerage. Agents can represent buyers, sellers, or renters. Some even distinguish themselves as buyer’s agents or listing agents, depending on their independent business models. A buyer’s agent will review your wants and needs in your ideal home and assist you in navigating available inventory within your local market. The listing agent represents someone selling their home and assists with marketing the property. Agent representation is extremely important as these professionals are skilled to sift through MLS results, tap into industry resources, negotiate terms of sale, and complete your legal paperwork.
Active Contingent: Contingenciesare clauses listed in the standard purchase agreement of a real estate contract that must be met before closing on the home. If the items listed aren’t met, the buyer has the option to back out of the agreement without penalty. If you fall in love with a home that has a contingency it means that someone already has an offer on that property. If it’s a home that you know you can’t live without, it’s best to talk to your real estate agent ASAP.
Flood Zones & Insurance: The Hampton Roads region is prone to flooding and tidal surges. Flood zones come in several classifications mandated by FEMA. Since there are neighborhoods in our area that can flood during heavy rains, it’s best to speak to your local real estate agent. They will have MLS tools needed to help you navigate whether flood insurance is needed. It’s mandatory for homeowners in flood zones as standard homeowners’ insurance will not be enough in this situation. If you are curious about the flood zones, FEMA’s Flood Map Service Center can help!
AICUZ Noise & Crash: AICUZ stands for the Air Installation Compatible Use Zone. Its purpose is to protect the safety of communities near airport environments from noise zones and crash hazard areas. Anyone selling or leasing property in Hampton Roads may need to provide the proper disclosure to prospective buyers. It’s mandatory for Norfolk, Virginia Beach, Chesapeake, and Hampton.
HOA/POA: HOA stands for Home Owner’s Association. The HOAconsists of a group of homes in a community that conform to certain rules and regulations. Membership is mandatory for residents and includes monthly fees. Fees are used to maintain common areas such as community pools or golf courses. POA stands for Property Owner’s Association. A POA can include both residential properties and businesses. The focus of the POA is on zoning regulations and development projects within a designated town.
Pre-qualified: Being pre-approved and pre-qualified are often used interchangeably but are two very different steps in the mortgage process. Getting pre-qualified is step one. It takes data you have submitted to a lender and gives you an estimate of what you could borrow. It’s not your committed amount.
Pre-approved: Getting pre-approved is step two. You will complete a mortgage application and submit the necessary financial documentation so that the lender can give you a commitment in writing that includes an exact loan amount.
It’s always a good idea to connect with a local expert in the Hampton Roads area to bring even more clarity to the terms above and the overall home buying and selling process. Connect with one of more than 9,000 agents today to help you along your journey. Ready to buy but not sure what you can afford? Check out the mortgage calculator to help estimate possible monthly payments. Download theREIN.com app and put the power of fresh and accurate listing data in the palm of your hand. The app is available free in the Apple App Store and Google Play Store. For local listings you can trust, start withREIN.com.
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