Appraisal: An estimation of the value of a property on a certain date given by a qualified person, usually after an inspection of the property.

Buyer's Agent: Represents the buyer's interest by monitoring the transaction from start to finish: meaning that the buyer's agent works solely in the best interest of the buyer.

Buyer's Market: A condition of the real estate market where there are more properties for sale than people interested in buying them. Buyer's have more choice and less competition for the available properties, resulting in lower prices.

Closing: The consummation of a real estate contract; also called a settlement.

Closing Costs: Expenses incurred in the purchase and sale of property over and above the purchase price paid at the time of settlement or closing.

Comparative Market Analysis (CMA): A method of assessing or establishing the fair market value of a property. It compares properties, that have recently sold, and are similar in size, condition, location and amenities to the subject property.

Contingency Removal: A form signed by both parties showing a condition of the sales contract was fulfilled. If the condition is not fulfilled, the Agreement will usually become null and void.

Deed: A written document that conveys title to land.

Dual Agent: Represents both the buyer and the seller at the same time, being responsible for the best interests of both parties.

Earnest Money Deposit (EMD): A deposit a buyer makes at the time of submitting an offer, to demonstrate the true intent to purchase.

Earnest Money Dispute: In the event of an earnest money dispute, the earnest money deposit will be held in the selling broker's escrow in accordance with the laws of the State of Michigan.  Disbursement of an earnest money deposit shall be made at consummation or termination of the agreement signed by both parties.  However, any deposit in the trust account of the broker for which the buyer and seller have made claim shall remain in the broker's trust account until a civil actions has determined to whom the deposit must be paid, or until the buyer and seller have agreed, in writing, to the disposition of the deposit.

Equity: The market value of a property less the debt against it.  A homeowner's equity increases as you pay off the mortgage or as it appreciates in value.

Final Walk-thru: A physical examination of the property, which usually takes place immediately prior to closing, to ensure that no changes have taken place and no new damage has been done to the property.

Home Inspection:  Shows problems and potential problems with the property not always visible to an average purchaser (i.e. a deteriorating roof, an ancient furnace, termites, wood rot, basement seepage). Many purchasers make their offer to purchase conditional upon obtaining a satisfactory Home Inspection report.
Homeowner's Insurance Policy: A standardized form of insurance providing blanket coverage against personal liability and a wide variety of hazards.  Homeowner's policies do NOT include flood insurance, and may also specify additional exemptions.

Listing: The agreement that allows a real estate professional to market a property or the actual notice of the property's availability and features.

Mortgage Insurance Policy: A policy of insurance, which promises to pay out the amount owing in the event that the borrower defaults.

Multiple Listing Service (MLS): A service created and run by real estate professionals which gathers all of the property listings into a single place so that purchasers may review all available properties from one source.

Occupancy Addendum: An addendum to the sales contract when the current owner occupies the home after closing.

Pre-approval: A commitment from a lender to provide a mortgage loan on stated terms to a borrower before the borrower has found a property to buy. The pre-approved mortgage allows the borrower to make a firm, cash offer on the property of choice.

Pre-qualification: The act of going through the mortgage application process before the borrower is ready to borrow, to establish how much money the borrower could obtain under a loan.

Sales Contract:  An agreement between buyer and seller on the price and other terms and conditions of the sale of property.
Seller's Agent: Represents the seller's interest by taking care of their specific needs and providing disclosure to the seller.

Seller's Market: Demand is greater than supply, such that the seller may demand a higher price.

Survey: A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any buildings.

Title Insurance: A policy, usually issued by a title insurance company, which insures a homebuyer against errors in the title search. The cost of the policy is usually based on the value of the property, and is often borne by the purchaser and/or seller.

Title Search: The act of examining in detail the public records relating to ownership of a parcel of land to ensure that the current owner has clear title, free of any liens, claims, mortgages or competing and adverse interests.

Transaction Coordinator: A licensee involved in a real estate transaction without having a relationship with the buyer or seller.

1.What is a buyer’s agent?
A real estate agent who is working on his/her behalf, representing that buyer-client and advocating for that client’s interest.

2. What’s the difference between an inspection and an appraisal?
A home inspection is usually not required by the financing institution, but an appraisal is. The home inspections are to discover/learn everything that you can about the home you wish to buy.

3. How do I make an offer after I find the right property?
The agent you select to represent you will complete the purchase and sale agreement with you.

4. How do I find an agent to work with?
First of all, you need to find someone with whom you are comfortable, someone you can trust to assist you through the process of buying and selling.

5. What can one agent offer that another may not?
Everyone has individual experiences that transfer into their daily interactions. Real estate brokers do too. There are specialties that are available to agents in terms of education and designations, and areas of specific interest that can develop.

6. Who pays the Realtor’s commission?
Most commonly the Realtor’s commission is paid by the seller from the proceeds of the transaction. In some instances a purchaser may arrange to pay a commission directly. All commission arrangements be put in writing and agreed to by all parties to the transaction.

7. Where do you go to close on a property?
You will go to a local title company.

8. What is earnest money?
Earnest money is the deposit you make on the home when you submit your offer. Earnest money proves to the seller that you are serious about wanting to buy their house.

9. When I find the home I want, should I make a full price offer?
If the home just came on the market, the list price is in line with the price of similar homes sold in the area, the homes in good condition, and this is the perfect home you’ve been looking for. Yes! Yes! Yes!

10. Why should I use a real estate agent?
Using a real estate agent is always a very good idea. They can guide you through the entire home buying process, and make the experience much easier and convenient for you.

11. Can I bring a personal check to closing?
No, you will need a cashier’s check or certified check for closing.

12. What does the term “as-is” mean?
The term “as-is” means the seller is not going to make any repairs to the property. This however, does not mean that the seller is exempt from disclosing any problems with the property.

13. What if my offer is rejected?
Your offer may get rejected for one reason or another. You may have to offer more money for the home.

14. What will happen at the closing?
The closing agent will have a stack of papers for you and the sellers to sign. They will give you a basic explanation of what each paper means.

15. Who does the real estate agent work for?
Before showing you any properties, the agent must disclose who they work for. An agent may be a buyer’s agent, a disclosed dual agent, or a seller’s agent. Be sure you clearly understand the representation of the agent working with you.

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