Gaslamp Realty

Glossary

Acceptance: Once the Sellers agree to all of the Buyer's demands and vice versa and all parties have signed the contract then we have reached Offer Acceptance and we are one step closer to our ultimate goal. At this stage many things start happening all at the same time. You will be receiving updates as things fall into place.

Appraisal: Your Loan Officer will order your appraisal and will need additional paperwork from you during this step. Your GR agent and you loan officer will work together to close this deal for you. We do not ask for nor accept payments from loan officers. We choose or business partners on ability, integrity, and customer service... in that order.

Appreciation: the rise in market value of real property over time

Cash-flow: the difference between expenses and income received

Cash-flow projection: takes into account all expenses and income related to a particular property including vacancy and maintenance allowances for a given period of time, e.g. monthly or yearly

Comparative Market Analysis or CMA: this is a report that shows homes in your area that are of similar size, style and condition; this will help you and your agent determine an appropriate offering price to list your property on the market

Contingent Offer: all offers to purchase are made contingent on several factors including whether the property appraises to the offered purchase price, whether the inspection report meets your standards, whether you can get your loan approval and the like.

Depreciation: tax advantage related to the deterioration of real assets over time

Disclosures: forms provided by sellers to buyers regarding the condition of the property being sold; these forms give a candid and up-close opinion of the property from those most familiar with it

Due diligence: this term refers to the buyer's responsibility to investigate, research, and study the different aspects of the home they are purchasing so that they are fully informed; "buyer beware" is a common term understood to mean the same thing, namely, that it is the buyer's responsibility to make sure what they are buying is what they want

Funding: is when your new lender wires the money needed to complete your transaction; funding conditions are last-minute requirements needed for the file to be complete and a funding cannot happen until all conditions are met

Inspections: you will hire a professional, qualified inspector to give you an expert opinion of the characteristics and quality of craftsmanship your home is built with; they will give you a complete, unvarnished and critical look at every aspect and proper functioning of your property

Loan Conditions: your lender will require different verifications and paperwork from you depending on the circumstances of your loan, these are called conditions because your loan approval is conditional on the lender receiving these different items

Recording: is the step where legal documents like the Grant Deed are recorded with the County Recorder's Office and made public; this is the public record of the transaction.

Rent Study: your Gaslamp Realty agent will analyze rents in the neighborhoods you are considering investing in and for the types of property you are considering and how much you can expect to receive in rents in each situation, this comparison will help you decide on a property to purchase

Repairs: your home inspection report will identify the condition and status of the home and from that information you may choose to request from the seller repairs to the home prior to move-in; if you are buying the home with an FHA or VA loan, those organizations have specific requirements regarding the condition of the home and may require certain repairs be made before approving the home for purchase

Return on Investment or ROI: simply means what kind of profit an investor realizes on money spent on a property; there are many ways to arrive at this figure, your Gaslamp Realty agent

Settlement: once the documents that transfer ownership are recorded and the property is officially yours it is time for settlement. This step involves the balancing of the escrow file and distributing all charges related to your transaction including any monies due to you the buyer.

Title report: this report is issued by a title insurance company and tells the buyers if there are any issues regarding ownership of the real property they are buying among other things

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