Your Guide To Understanding Common Real Estate Terms

Like any major industry, real estate has a vocabulary all its own. If you are unfamiliar with many of the common terms, it may be hard for you to keep up with the real estate jargon tossed around by your Lake of the Ozarks real estate agent and other professionals. We have a great deal of experience working with both buyers and sellers who are either new to the market or who haven't bought/sold in many years, and we are sympathetic to the challenges they may experience. That's why we're dedicating this week's blog to defining some of the common real estate terms, acronyms, and abbreviations. Keep this as a reference guide for the next time you plan to buy or sell a house at the Lake of the Ozarks.
Common Real Estate Acronyms: 
  • 2B/2B: Two Bedrooms, Two Bathrooms (exact numbers vary)
  • ARM: Adjustable Rate Mortgage
  • CMA: Comparative Market Analysis
  • COO (or C of O): Certificate of Occupancy
  • DTI: Debt to Income Ratio
  • FHA: Federal Housing Administration
  • FRM: Fixed Rate Mortgage
  • FSBO: For Sale By Owner
  • HDW: Hardwood Floors
  • HEL: Home Equity Loan
  • HOA: Homeowners Association
  • HUD: Housing and Urban Development
  • HVAC: Heating, Ventilation, and Air Condition
  • L/O: Lease Option
  • MLS: Multiple Listing Service
  • NOO: Non-Owner Occupied
  • OBO: Or Best Offer
  • OO: Owner Occupied
  • O/F: Owner Finance
  • PITI: Principle, Interest, Taxes, and Inusrance
  • PMI: Private Mortgage Insurance
  • PSF: Per Square Foot
  • RTO: Rent to Own
  • W/D: Washer and Dryer

Common Real Estate Terms:
  • Appraisal: The formal process wherein a property's current market value is determined.
  • Bedroom: A bedroom is defined as a room in a house that has a closet, a window, and room for a bed
  • Closing Costs: The miscellaneous expenses a buyer is expected to cover at closing.
  • Contingency: A provision with an offer or contract the prevents the agreement from being legally binding unless a certain condition is met.
  • Earnest Money: A deposit the buyers submit with the offer to demonstrate that they are serious about buying the property.
  • Easement: A right of way that guarantees a third party the right to access or use the property in some way.
  • Equity: The amount of the home the owner actually owns.
  • Fixture: Anything that is permanently affixed to or a part of the property.
  • Full Bathroom: A bathroom that has a toilet, sink, and bathtub.
  • Half Bath: A bathroom that has a toilet and a sink.
  • Inspection: The formal process that determines the current condition of all aspects of the property.
  • Three-Quarter Bathroom: A bathroom that has a toilet, sink, and a shower.
  • Title Insurance: A special form of interest that protects the right to use and occupy the land.

Contact Fran Campbell Team For Help Navigating The Real Estate Market

While this glossary should help you start to make sense of the real estate market, it is by no means an all-encompassing guide. There are countless other real estate acronyms and terms you may encounter. Not only that, but understanding real estate on paper and understanding it in real life are often two very different things. If you are preparing to enter the housing market as either a buyer or seller, contact an agent at Fran Campbell Team - RE/MAX Lake of the Ozarks for the representation you need. We will be more than happy to help you make sense of the process!

Real Estate Lake of the Ozarks : Find Your Dream Home Now! 

Contact Fran Campbell Team at RE/MAX Lake of the Ozarks for all your real estate needs.

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