What is a Buyer's Agent?
A "Buyer's Agent" is a representative that works exclusively with a home buyer, and represents ONLY the Buyer's interest. A Buyer's Agent differs from a Listing Agent in that the Listing Agent works for the Seller, and is contracted to sell the home for the highest and best terms for the Seller.
What is a Listing Agent?
The Listing Agent is an agent contracted by the seller to market and advertise their home. The listing agent handles all negotiations for the seller in the seller's best interest.
What is a Pre-Approval Letter?
A pre-approval letter is given to a buyer who has gone through the loan pre-approval process with a lender. Many times the word "prequal" will be used but a prequalification or "prequal" is not the same as a pre-approval. Prequalifying only means that a lender has performed some basic calculations and decided that you could qualify for a loan. A pre-approval means that you have submitted the necessary documents and based on everything turned in, you essentially have a conditional loan approval.
What is the MLS?
The letters MLS stands for the Multiple Listing Service. This is a service used as a database for home listings. When a listing agent has a listing its put into the MLS so that other agents will know about it and potentially bring a buyer
What is Escrow?
Most real estate transactions in the state of California utilize the services of an escrow company, yet escrow remains one of the least understood elements of the real estate process. It is the primary responsibility of the escrow holder to ensure that all of the necessary instructions in the real estate agreement are executed. Monies and documents needed for both buyer and seller side are satisfied by a neutral third party.
What is a Good Faith Deposit?
A good faith deposit is a deposit that a buyer includes when writing an offer. This deposit tells the seller that the buyer is serious and interested in purchasing the home. The deposit is not actually given to the seller, it will be held in a trust account or escrow. In the event a buyer fails to close escrow, the deposit could be given to the seller as damages. This is not always the case. For a detailed description of the entire offer and escrow process sign up for my free e-course.
