Puffing in real estate is when a seller or their agent makes exaggerated claims about the property to attract buyers.
It is not misrepresentation or illegal unless they lie about material facts.
Misrepresentations can be innocent, negligent, or fraudulent.
An encumbrance in real estate can be land use or financial.
Land use restrictions include easements, setbacks and zoning issues.
Liens are financial issues and include mortgage, mechanics, and tax.
DOM in real estate measures how long a house has been marketed. It reflects whether the house is priced correctly.
Market conditions and the upkeep of the house also affect this number.
Buyers and sellers both should look at this number with other objective and subjective criteria to determine the true market value of a property.
Concessions in real estate usually mean sellers paying buyers’ closing costs.
While this is common, they can be tricky because of appraisal and tax issues. So, it may or may not be a good idea.
As an incentive when compared to a price reduction it may be a good strategy.
Novation is replacing one contract with another. People do this because the obligations of the parties change.
They are either added or deleted, or the parties to the contract change.
Novation is different from assignment, because the assignor is still obligated, and so the other parties do not need to approve the change.
A variance on a property is a deviation from zoning laws. It can be a non-conforming structure or a setback.
If you want to make a change to your property you may need to get a variance. the process can take time and be expensive.
Most area variances run with the property, but its common for use to expire.
EMD are good faith funds held in escrow that shows the buyer is serious about the contract for a house.
These funds should be held by a third party, so neither party has access.
The seller has a claim if the buyer walks away without cause, but contingencies in the contract also protect purchasers.
At closing, the money is put toward the closing costs and/or down payment.
The underwriting process protects banks from making bad loans.
They want to know the borrowers credit history and debt load. They also want to know if the house’s market value matches the sale price.
Underwriting evaluates the risk of a transaction. Banks do this by reviewing the borrower’s credit history and verifying the property’s value.
It is important because it minimizes losses for the bank.
Underwriters look for a borrower’s credit history, their capacity to borrow money, and the property’s value.
An automated valuation tool is not an appraisal, but it can be a valuable tool to help you understand what your home is worth.
It predicts what the price of your house should be based on a mathematical algorithm, which usually includes a hedonic statistical model and a repeat sales index.