Real Estate - Understanding Where to Start

by Jennilyn Bylund

When buying your first home, entering the real estate industry can be complex and overwhelming. The industry is a world of its own and comes with a vocabulary that is foreign to most. However, knowledge and understanding of the real estate business will bring confidence and security when making one of the largest financial investments in your life.

Knowing the difference between a Real Estate Agent and a Realtor
The first hurdle to jump when acclimating yourself to the industry is to identify who you want to work with. Real estate agents are licensed professionals who are well-educated about the processes and financial management options that are available when buying or selling a home. Realtors are also licensed professionals, but set themselves apart through membership in the National Association of Realtors and must abide by a strict code of ethics to uphold honest and ethical transactions.

Knowing what to ask
A common mistake future home buyers experience is failing to do thorough homework. After individuals have developed criteria for homes they wish to view, a list of questions for the seller, and the real estate professional you are working with, should be formed. It is critical to not only ask questions, but to ask the right questions. Through the right questions home buyers can discover more than can be seen. A few example questions are below.

• How long has the house been for sale? This may tell you about accuracy of the asking price of the home, or its potential.
• Have other offers been made? If so, why were they not accepted? Answers to these questions will help you avoid making the same mistakes other potential buyers made.
• How does this home compare to other houses on the street? If you are working with an agent he or she should be able to tell you about other homes in the area that might be coming up on the market, or possible remodeling ideas.
• Why is the home being sold? The answer is valuable for buyers to discover the motivation behind selling the home, which might not be visible while viewing the home.

Knowing their language
When looking for your first home, don’t be alarmed if you don’t know all the lingo and acronyms being thrown at you. But try to become familiar with the language real estate professionals and sellers use. Here are a few examples of the most popular real estate lingo used to get you started on your new vocabulary.

• MLS - Multiple Listing Service is a computer-based system that provides real estate professionals with current properties available for sale. MLS data is local or regional. listing - An agreement made between a real estate broker and a home seller that allows the broker to make arrangements to market and sell the home. Sometimes “listing” makes a direct reference to the house for sale.
• expansion pot’l - expansion potential indicates there is additional space on the lot to build, or possibly adding a room on an upper level based on local zoning regulations.
• nr bst schls - near the best schools
• 4B/2B - four bedrooms and two bathrooms.
• dk - deck
• FDR - formal dining room
• frplc, fplc, FP - fireplace
• gar - garage
• grmet kit - gourmet kitchen
• HDW, HWF, Hdwd - hardwood floors
• hi ceils - high ceilings
• pwdr rm - half bathroom or powder room
• upr - upper floor
• vw, vu, vws, vus - view(s)

Knowing how to start
One of the best ways to become real estate savvy is talk to family and friends that have already gone through the process of buying a home. Find out what challenges they experienced and tips that may make your experience more enjoyable. If you decide to use a real estate professional, get several referrals from them and then talk to multiple agents. Find someone you feel completely comfortable working with. Never be afraid to ask questions -this may be the largest financial investment you make in your life. The real estate industry is less scary once you understand it.

About the Author

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