Tag Archives: Real estate terms

The Difference Between a Principal Broker, Associate Broker and a Real Estate Salesperson

15.06.2018 siteowner Leave a comment

Principal broker, associate broke and managing broker, and a real estate salesperson – what’s the difference between these agents? For many homebuyers, figuring out the various roles and responsibilities for these real estate job titles can be confusing. People tend to use the terms interchangeably, however, each role requires specific classes, tests and licenses, and continuing education requirements. Let’s discuss the roles and responsibilities of each. Continue reading →

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What is the role of a title company in Northern Virginia?

26.04.2018 siteowner Leave a comment

During the home buying process, roles like those of the realtor and home inspector are easily understood. Other roles, like the role of the title company, may be puzzling. It’s important to understand the critical role that the title company plays in the purchase of your new home, as it protects you from legal disputes over the property. If you are purchasing a home in Northern Virginia you have the right to use a title company or a real estate attorney to close and process your transaction. With most residential transactions in Northern Virginia, a title company is used. Here are some key points to know about your title company. Continue reading →

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Real Estate Ownership Explained: Condominium VS Fee Simple

08.02.2018 siteowner Leave a comment

There is a common misconception in the real estate world regarding condominiums. Most people associate the word condominium with apartment buildings. However, the word condominium actually refers to a form of real estate ownership, not the construction layout or design of the home. Let me explain. Continue reading →

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The Real Estate Contract: What is the earnest money deposit and how much should it be?

20.10.2017 siteowner Leave a comment

The time has arrived. You’ve found the home of your dreams and are prepared to make an offer. Now what? All real estate contracts must be in writing and a seller will not accept a formal offer without an Earnest Money Deposit (EMD). Earnest money is a deposit made to a seller showing the buyer’s good faith to proceed in a transaction. The EMD is an important part of the home buying process as it confirms to the seller that you are a legitimate and committed buyer. Without an EMD, a buyer could potentially make offers on several houses taking them off the market until they decide on their favorite. Continue reading →

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Local Real Estate Market Stats and What They Mean to You

05.10.2017 siteowner Leave a comment

Are people buying real estate in today’s market? What price are homes in the area selling for? How long are homes staying on the market? All of these are good questions to ask your real estate agent whether you’re buying or selling. Continue reading →

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4 Reasons You Need a Price Strategy Advisor, (PSA)

06.04.2017 siteowner Leave a comment

When you search for realtors, are you overwhelmed by how many are in your area? And how to distinguish one from another? What you need is a realtor who has taken the next step to make your home-selling and buying experience a positive one. You need a Price Strategy Advisor, (PSA). As a certified PSA, I want to share with you four reasons why you should choose a realtor who has a PSA certificate.

Price Strategy Advisors Are Well Trained

Realtors who earn their PSA receive a certificate after completing an in-depth course on comparable pricing, valuation and market analytics. Those choosing to earn the PSA designation have to test out of the certification class. They know this educational component is important for accurately aiding their clients to help create the best buying or listing price strategies. They also take continuing educational opportunities seriously and value the importance of new ways to best serve their clients.

They Will Guide You Through the Maze

Whether you are buying or selling a home, a realtor with a PSA certificate can guide you confidently through the maze of complexities that come with buying or selling a home. Real estate has its own lingo, which can be very daunting. What is a Comparative Market Analysis? Does it benefit the buyer? The seller? Is the appraisal fair? Am I making a great bid, or am I overpaying? These are all intersections in the maze, and a realtor with a PSA can successfully navigate with you.

The Masters of the Comparative Market Analysis

Your PSA-certified realtor will not only guide you through understanding a Comparative Market Analysis (CMA), but they are extensively trained in how to calculate this important tool. As mentioned in a prior blog, the CMA is an in-depth report that digs into the heart of your homes worth. The CMA is compiled using “comparables.” These are nearby properties similar to yours that have sold in the last three to six months. A realtor with a PSA certification knows how to use the data to ensure an accurate read on your area and your home. A well-done CMA and pricing strategy can also mean a faster selling time on your property.

PSA and the Code of Ethics in Valuation

Realtors with a PSA certificate also have a deep understanding of the National Association of Realtors (NAR ®) Code of Ethics. Realtors with a PSA certificate must be in good standing with the NAR®. This means that their knowledge and good standing can be seen in the valuation of your property and the realtor’s interactions with you, the valuation process, appraisers and others involved in the real estate process.

As you can see, a realtor holding a Price Strategy Analyst certificate can be an asset to your property sale or purchase, bringing integrity, knowledge and success to the table. If you are interested in learning more about the PSA certificate or a Comparative Market Analysis, please contact Belinda Jacobson-Loehle at Jacobson Realty and Home Staging today.

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The Purchase and Sale Agreement: It’s a Big Deal!

09.03.2017 siteowner Leave a comment

The Purchase and Sale Agreement: It’s a Big Deal!

You’re sitting at the table and looking at the PILE of paperwork that comes with buying your first home. Every piece of paper is important in some way, but the “big deal” is the Purchase and Sale Agreement.

The Purchase and Sale Agreement is a written offer from the potential buyer of the property to the owner of that property. The agreement lists the details of the transaction to protect both parties. If and when agreed to, there is a “meeting of the minds.”

In real estate, an agreement is tailored to specific properties such as single-family homes, multi-family homes and vacant land and contains a list of details important to the sale of a property. Here are some of the details you may find in your agreement.

Purchase Price Offer

One of the main details both parties want to know is the purchase price. As the buyer, your offer is considered and may be countered by the seller based on price or other terms. One of the important items to pay attention to is an expiration date of the offer. The offer cannot be accepted after expiration date unless all parties agree to modifications. Many realtors call this a “trigger” date. It is often seen in “hot” buying markets when several buyers are competing against each other.

Description of Property

Both the common mailing address and a legal description of the property will be included in the agreement. Residential developments are identified by subdivision, lot, block and section, and land and non-subdivision property are defined by the tax ID and/or tax map number.

Chattels, attached personal property such as appliances, light fixtures and even built-in shelving are specifically identified in the body of the agreement. Other personal property such as a pool table or playground equipment which may or may not convey should be identified and written into the agreement on behalf of the buyer. Do not assume all appliances convey just because some do. Be specific. Make sure your realtor is aware of the details and how you want your offer to be structured.

Who’s Who

Another crucial detail is information on which companies are handling the title to the property, the loan, closing and escrow. This information is important to make sure paperwork is properly transferred to the new owner. By and large, I believe a transaction is smoothest when both the seller and buyer use the same title or closing company, an impartial party that does not represent the buyer or seller unless monetarily retained. Keeping buyer and seller information under the same roof allows for faster and more responsive flow of communication.

Contingencies

As I noted in the blog “It’s Always Something,” the first thing to remember about contingencies is there are always more than one. However, they are extra protections for all parties involved. These can include home inspection and appraisal contingences that can save the buyer cash and heartache trying to deal with unexpected repairs or taking possession of a property that isn’t worthy of its value.

There are so many other items that may be included in the Purchase and Sale Agreement that I can’t even list them all here, but I should share just one more: the closing and possession dates. Who doesn’t want to know when they can jump in and start their new adventure? The closing day is an exciting time for all. It is when the seller signs the title work to transfer the deed and lending paperwork is signed off by the buyer to complete the purchase.

Typically keys are handed over to the new buyer, possession is taken and the moving trucks are ready to unload. However, this day may or may not be the official closing date. The official closing date occurs when the transaction is recorded in the county, city or jurisdiction for which the property is located. The title or closing company has two business days to record the transfer. Once the transfer is recorded, funds are dispersed to the seller and any lien holders, and the transaction is officially complete!

If you want to learn more about Purchase and Sales Agreements or are ready to buy or sell a home please contact Belinda Jacobson-Loehle at Jacobson Realty and Home Staging today.

You can also learn more by downloading my FREE e-book, “The Real Estate Key – What You Need to Know”!

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Know the Market With a Comparative Market Analysis (CMA)

04.03.2017 siteowner Leave a comment

Our home is not just an investment; it is an extension of ourselves. Our home is where we may have raised our children and learned all about gardening or celebrated holidays. Sooner or later, while we will always treasure the memories, most of us outgrow our home. If this is the case for you, your realtor will break out several tools to help you valuate your home to get you the best price. One of those tools is a Comparative Market Analysis or CMA.

Dare to Compare

The Comparative Market Analysis is an in-depth report prepared by your realtor that gets to the core of your house and the spirit of the neighborhood your house is in. This report is compiled before your house goes on the market and uses “comparables,” which are other nearby properties that have similar features, style and size to yours that have sold in the last three to six months. These comparisons help determine where to position the list price in order to get the best selling price for your home.

The Big Three

When you sit down with your realtor, you may already have an idea of your home’s worth and most likely have already checked all the automated valuation models (AVM’s) such as Zillow, Realtor.com and other real estate platforms. However, your realtor’s knowledge base of the area and expertise at evaluating houses and location are not taken into consideration with AVM’s. Consequently, AVM valuations are often too high or too low. Your realtor will provide a more accurate and current picture of your home’s worth. Below are three key areas that are considered when preparing your CMA.

Interior features are one of these key areas your realtor will look into. These can include, but are definitely not limited to, the square footage of your home, the number of bedrooms and bathrooms and basement type. Basements, you ask? Yes, basements. If you have a fully or partially finished basement, the finishing details will help define the value of your home. Does the basement have a window and natural light, or is it more for storage? In other words, how livable is the actual space. The type of ingress and egress the basement has is also important when preparing a CMA. Do you have a true walkout basement, or is it a walk-up basement or in-ground? Regardless of the type, style, and finishing details your basement has, it will add to the overall square footage of your home. However, it will most likely be valued at a lower rate than above ground living space because by and large basements are cheaper to construct than above ground structures.
Exterior features that your realtor will consider include deck, patio and gazebo add-ons, side-load versus front-load garages, as well as hardscape and landscaping features. Do you have an outside masonry fireplace and patio or fountain or even a koi pond to help add value to your home? Siding, windows and roofing are taken into consideration but are typically not valued by a realtor for a CMA but are used to evaluate overall maintenance condition.
Location is always the most important factor. Is your house located on a busy street, or are you on a pipestem lot? Does your house back to trees, a golf course, lake or pond? If so, then these site features may add value and be cited in the CMA report. Your realtor should know how to choose comparable homes with similar site features.

Trust me when I say there are a lot of other factors to be considered in valuing a property. Preparing a good Comparative Market Analysis takes time and requires an understanding of the marketplace and area trends. This professionally researched report from a knowledgeable local realtor will give you a well-rounded portrait of your home and neighborhood, including a confident listing strategy. Belinda Jacobson-Loehle of Jacobson Realty and Home Staging is ready to create you a great CMA. Contact me today.

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Mystery Solved: R versus r in “Realtor”

12.05.2016 siteowner Leave a comment

Mystery Solved: R versus r in “Realtor.”

Many people have asked us, “What’s the difference between a realtor and a Realtor? Why the capital “R”?” Today, we’re here to solve that mystery and more.

A Realtor, pronounced “real-tor” (there is no “a” or “i” between the two syllables), with a capital R, is part of the National Association of Realtors and has committed to upholding the Code of Ethics and Standards of Practice of the National Association of Realtors. This means you get the gold standard in ethical service from a Realtor, but you may not receive the same from a realtor. The gold standard is what you get from Jacobson Realty and Home Staging, where we are all Realtors.

What is the National Association of Realtors?

The National Association of Realtors is made up of over 1.1 million members from all aspects of real estate. This includes brokers, salespeople, counselors, appraisers, property managers and others from the commercial, industrial and residential real estate fields.

In order to be a Realtor, someone in the field has to join the Association and agree to abide by the strict Code of Ethics. Ongoing continuing education requirements in the Code of Ethics must also be completed in addition to state-mandated training. The Association provides a wealth of information and a facility for research, the exchange of information and professional development.

What is in The Code of Ethics?

Realtors have certain obligations to their clients and customers, to the public and to other Realtors as outlined in the Code of Ethics and Standards of Practice of the National Association of Realtors.

Their duties help ensure you as a client or customer are getting fair, honest and equal information at all times.

· Realtors cannot mislead an owner about the market value of a home to get their listing.

· Realtors are not allowed to mislead buyers about savings or benefits they can receive through their services.

· A Realtor can only represent both the buyer and seller in a transaction (or the landlord and the tenant) after all parties are fully informed and written consent is documented.

· A Realtor must submit offers and counter-offers objectively and quickly.

· A Realtor can only permit access to a property on the terms and conditions authorized by the owner or seller.

· Realtors must preserve and protect the confidential information of a client.

There are much more standards of practice listed in the Code of Ethics that Realtors must abide by, all of which stack up to a trustworthy and confident transaction for you.

Duties to the Public

A Realtor also has duties to the public. In the state of Virginia, they may not discriminate against race, color, religion, sex, handicap, familial status (a parent or guardian with children residing with them who are under the age of 18 years old), national origin, sexual orientation or gender identity. They also may not volunteer information about the racial, ethnic or religious composition of any neighborhood. They must be honest in all communications and not present misleading information to the public.

Duties to Other Real Estate Professionals

A Realtor has duties to other real estate professionals to keep a strong ethical backbone in the real estate community. Realtors cannot knowingly or recklessly make false or misleading statements orally, or in writing, about other real estate professionals, their businesses or business practices.

All of these rules and regulations that Realtors must follow help ensure the highest level of professionalism in the real estate business. As Realtors here at Jacobson Realty and Home Staging Company, Inc., we are committed to upholding the highest standard of ethics to give you service you can trust when buying or selling a home. Contact us today for more information.

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Condominium and Fee Simple Ownership – What These Terms Mean for the Homebuyer

01.04.2016 siteowner Leave a comment

Condominium and Fee Simple Ownership – What These Terms Mean for the Homebuyer

When you’re a first-time homebuyer, chances are you’re adding a lot of new terms to your vocabulary. Escrow, closing costs…what does it all mean? They don’t teach you about real estate transactions in high school, so when and where are you supposed to acquire this knowledge? The best way is by asking a professional realtor. Today we want to examine two popular types of ownership for homebuyers and what that means to you – condominium and fee simple ownership.

Condominiums

Condos sometimes look like apartments or multi-unit structures, but they can also look like townhomes, garden homes or duplexes. If you purchase a condominium, you generally own the space inside the unit as an individual. You also jointly own the common elements of the building, or an undivided interest in the land and the structure held in common with other condominium owners in the building. The common elements are typically exterior walls, the roof, decks, plus the common land areas and recreational facilities.

Along with condominium ownership come condominium fees. These fees typically cover the cost of maintaining everything outside of your individual unit, although water consumption is often times a part of the condominium fee instead of an added cost. The condo association will have a master insurance policy on the jointly owned components of the property, and you will only need to insure what’s inside your unit. A condo association makes decisions on when and how the money from condo fees will be spent, whether that’s on unit improvements, repairs or managing common areas. As a condominium owner, you should never have to worry about replacing the roof, repairing windows or painting the structure’s exterior. Your condo fee will cover it!

Before purchasing a condominium, read the Condominium Declaration document to understand your responsibility and that of the condomium association. There are several condominium documents, which are mandated by the state and require the latest version of information and budgets to be provided to every purchaser. A purchaser will receive this information prior to closing. Review them carefully. If you have questions, don’t hesitate to ask your realtor.

Fee Simple Ownership

Fee simple ownership is a “freehold” estate, which means that you own the land and everything on the land for the duration of your life with the right to transfer it to your heirs, depose of it at any time or place restriction on it as you wish. It is regarded as the highest level of ownership in this country. As the owner, you are responsible to maintain and insure everything on the parcel of land.

Although you own everything on the property, you may still have to pay dues and be a part of a homeowners association. Homeowners associations usually have rules and regulations about how you can alter the outside of your home and whether recreational vehicles are permitted to be stored on the property. Their goal is to make sure the neighborhood remains beautiful and well maintained so that home values stay as high as possible (for everyone’s benefit).

Understand What You’re Buying

No matter which type of home you choose to purchase, make sure you fully understand what owning that type of property entails. Familiarize yourself with the rules and regulations of the condo association or the homeowners association. When deciding what to buy, make sure to factor in dues for either of these associations into your budget. As a first time homebuyer, don’t be afraid to ask as many questions as you need so that you’re crystal clear on what you’re signing. There’s no shame in asking questions, and your realtor is here for just that purpose.

For more information on condominium and fee simple ownership, contact Jacobson Realty and Home Staging. We’d be happy to explain in more detail what real estate terms mean to you as the homebuyer.

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