Ep 2 Terminology - a podcast by Brian Cook And Kindra Cox

The following are some terms that were discussed on the December 12, 2019, episode of The Brian and Kindra Show.  These terms may be helpful to you as you navigate a real estate transaction.

To begin, the term Staging is often discussed when a property is listed on the market for sale.  This term refers to ‘Dressing’ up a property to help buyers see it in the best light.  This can help to show a potential living room design or how spacious a bedroom is, etc.  However, not all properties must be staged in order to sell.  Some buyers find an ‘empty slate’ allows them to better imagine their own personal property in the space.  Additionally, when a property is completely vacant, there can be more flexibility in showing times that might work better for some buyers and their agents.  

Sometimes the term ‘Fixer-Upper’ or Handyman Special is used in reference to a property that needs some work and is sold at a bargain price. The tricky part of a fixer-upper is that a buyer must exercise care in their updates and remodel work.  It has been found that some bargains turn into money pits and may not have the resell value hoped for.  Some markets, Woodward included, make it difficult to profit from a handyman special.   Additionally, not all loan types work well with fixer-uppers as the loan may have certain condition requirements.

Another term that can be confusing is Earnest Money. Earnest money is a deposit of funds to hold a transaction. A buyer allows their money to be placed into an escrow account that is monitored by the state. The accounts are registered and only hold trust funds. The seller basically put their house up for equity by removing it from the market.  This act shows their commitment to the transaction. The amount of earnest money is agreed upon between the buyer and seller.  

Last, many customers are curious regarding the difference between a contract and an offer. The only difference is that a contract is an accepted offer.  The show described the offer process used by their Realtors as follows:  A buyer shares their terms for their offer with their agent and the agent types a Real Estate Purchase agreement using those terms.  This offer is then submitted to a seller.  Once a seller accepts an offer, it becomes a legally binding contract.  By completing all of the paperwork during the offer stage, confusion is limited or eliminated for both parties to help ensure a smoother transaction.   

If any of these terms are still confusing or if you have questions on other real estate terms, contact your real estate professional for more information.  Best wishes in your real estate search! 

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