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Vocabulary Lesson of the Week | Real Estate Lingo

Realtors and other people in the know have a tendency to talk in acronyms. Apparently, we are so rushed for time that we cannot bother to say the whole word or phrase. And, time is money, you know. So, without further ado, here is a brief list of some of the more popular time-savers.

1.    MLS: This stands for Multi-Listing System. Basically, it is the internal database that all realtors use to access information on homes for sale. You need to be a licensed realtor to use it, but online sources like realtor.com can pull certain information up to share with consumers.

2.    FSBO: For Sale By Owner, pronounced “fizz –bow”. Realtors go after FSBO’s. Sometimes aggressively. And, really, in this market, there is NO valid reason why you should go it alone. None!

3.    CMA: Comparative Market Analysis. A CMA is when a realtor analyzes all the data of houses currently listed as well as recently sold in your area and comes up with a well-thought out list price for your home. Most realtors do not do this very well and most homeowners do not want to hear it anyway. Another story, another blog post.

4.    PITI: You may see this and be tempted to say “pity” or something similar but realtors say the letters … P-I-T-I. It stands for principal, interest, taxes and insurance in reference to your new mortgage.

5.     The HUD: The proper name is the HUD-1 Settlement Statement, but everyone just says “The HUD”. This is that main page of your closing docs, where it shows the breakdown of all the math. It is usually an 11 x 14 piece of paper.