Basic Mission Viejo Real Estate Vocabulary
If Mission Viejo, Coto de Caza, or Rancho Santa Margarita Realtors sometimes seem like they are speaking a different language, they are. Here’s a short list of the most commonly used insider terms today – just so you can keep up when you find yourself in the midst of a Real Estate discussion this Holiday Season.
Needs TLC – This quite literally means Tender Loving Care. Realtor code words for bring your checkbook. As a buyer in Mission Viejo or Coto de Caza today, you should start itemizing your fix-it list as soon as you exit from your Realtor’s car. Your list may include re-doing the landscape, fixing the dangling porch light, putting on new exterior paint, installing a new roof, replacing the flooring, a fresh coat of interior paint, installing working appliances. Helpful also to have the calculator app on your smart phone open so you can add up the potential price tag of all the tender loving projects you’d have to take on after you buy the house. As a seller, you may want to unload your house without putting a single penny into improvements. Your Realtor will help you decide what branding your home as needing TLC will do to your pricing strategy.
AS IS – See Needs TLC above. Also used to make a slightly stronger seller statement that the seller knows the home needs work and since they didn’t do it while they were living there, they certainly won’t be doing it for you.
Cash Buyers Only – 1. The house is in such bad condition that no lender will give anyone the loan to buy it. This leaves only someone with a bucket or two full of cash able to scoop it up. 2. The Short Sale was approved at a specific amount but the buyer disappeared and they need to pull a qualified buyer out of a hat – someone who can close in ten days, before the approval expires, which would make it hard to get a loan on, so cash is the only viable option. I hear all of you lenders who can do loans in ten days or less groaning loudly. Calm down. You may get a shot if you are clear with your borrowers and their Realtor.
No Appraisal Contingency – This is the blank check clause – where the seller demands the buyer eliminate the need for the appraised value to match the contract price. In a nut shell, you have to be willing to bring in the money in case the appraiser says the home is worth $20,000 less (just as an example – your actual number could be way more or way less) than what you agreed to pay.
No Termite – This means that if you are getting a loan to buy a home in Orange County today, your lender will typically require that all the Section One Termite repairs are completed prior to funding you home loan, the seller will not be covering these costs for you. Another opportunity for Mission Viejo buyers to whip out their calculators and check book. (And you do want to get rid of the termites and the dry rot, don’t you? Cha-ching.
Rent Back – This means that for any number of reasons we can go into later, the seller wants to keep living in your home. For a period of usually one to two months after you close escrow and become responsible for paying the mortgage, insurance, taxes, and Home Owners’ association dues. How does that make you feel? Don’t worry too much – keep reading.
PITIA – This stands for mortgage Principle and Interest, property Taxes, home owners Insurance, and home owners Association dues. This is what you will ask the seller to pay when he wants to keep on living in your home. So that ALL of your carrying costs are covered.
So when you hear someone say “I just bought an AS IS home that needed so much TLC I had to pay cash, remove the appraisal contingency up front, and pay for all the termite outside of escrow” you’ll know exactly what they’re talking about.
I’m Leslie Eskildsen. Just keeping it real in Orange County Real Estate. Call me. Text me. Email me. I’ll call you back. Unless it’s 2 AM. I’m sleeping and will call you tomorrow. 949-678-3373
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