Today I would like to discuss some common but sometimes scary real estate terms for buyers and sellers. Short Sale and Foreclosure. These types of properties are also sought after by investors, so I'll also discuss Return on Investment.
Short Sale – The seller owes more on the property than its current market value. They make a deal with the mortgage company to sell at a reduced rate. These general take quite a bit of negotiation and will take longer than normal real estate transaction.
Foreclosure – This is a home in which the owner has defaulted on the payments of the mortgage. The mortgage takes the home back and resells it usually at a loss.
While no homeowner wants to ever hear these words as it usually means something catastrophic happened in their lives, investors will often look for these type of properties. Investors see these properties as an opportunity to gain a property that for a small investment and a little work they can get a large return on their investment.
ROI – Return On Investment is a term commonly heard when dealing with investment and commercial property. This is a performance measure where the cost of the investment is subtracted from the gain of the investment. The cost of the investment is divided from that total. This is usually shown as a percentage or ratio. Keep in mind that this number can manipulated depending on what information is included when coming up with the number for both the gain and cost. Remember to ask how they came up with these numbers.
These are among the most common real estate terms that you will hear during your search. Hopefully, I have succeeded in helping you understand these terms better and taken some of the confusion and fear out of the process for you.
Happy Hunting!
About the Author
Debbie Caldwell
When you first meet Debbie Harris-Caldwell, you are immediately drawn to her charming Welsh accent and the twinkle in her eye. The well-traveled transplant from Wales is quick to set you at ease and time spent with her promises to be time well spent.
Debbie has been a real estate agent for 40 years and takes great pride in her customer service skills. "I make myself available to my customers when they need me, whether it's on a Sunday Evening or after their long day at work. I make my schedule fit theirs. I also keep my customers updated on everything happening with their listings or purchase, I am their conduit for information." She has built a business following her key principles of clear communication, attention to detail, client advocacy, and comprehensive knowledge of the area. Debbie comes to every new transaction with positive energy, determination, a strong understanding of the currents driving the market, and the expertise that comes from a lifetime of experience. She knows the importance of marketing and whether a home is for sale for $200,000 or for $2 million, she always has professional photography done and creates a listing presentation that best shows off her customer's home.