Tom Crimmins Realty Blog - Word of the Day

Real Estate Word of the Day: Probate

Real Estate Word of the Day: Probate

Probate is the court-supervised process of authenticating a deceased person's will (if one exists), appointing someone to administer the estate, identifying and inventorying the deceased person's property, paying debts and taxes, and distributing the remaining property as directed by the will or by law. Essentially, it's the legal process of transferring property from the deceased person to their beneficiaries or heirs.

When a property owner passes away, the ownership of the property doesn't automatically transfer to their heirs. Instead, the property becomes part of the deceased person's estate, subject to probate. The court oversees the transfer of the property's title from the deceased person to their…

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Real Estate Word of the Day: Proof of Funds

Real Estate Word of the Day: Proof of Funds

Proof of funds (POF) is a document or set of documents that demonstrate an individual or entity's financial capability to carry out a transaction. In real estate, this typically refers to the ability of a buyer to finance the purchase of a property. It is a tangible way for sellers and their agents to verify that a prospective buyer has the necessary funds available to complete the purchase.

Proof of funds can come in various forms, depending on the financial situation of the buyer. Some common types include:

1. One of the most straightforward forms of proof of funds is a recent bank statement showing the account balance. This indicates to the seller that the buyer has sufficient liquid assets to cover…

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Real Estate Word of the Day: Appreciation

Real Estate Word of the Day: Appreciation

Appreciation is an increase in the worth or value of a property over time, typically due to changes in the market, inflation, or other related economic causes. The increased value of a real estate property may lead to the owner making a profit upon selling it as the property is now worth more money. The opposite of appreciation is depreciation. According to The National Association of Realtors, the median price of homes rose an average of 6.4% per year between 1968 and 2004. Demand is the strongest factor. When the demand for real estate is higher than the supply, its value will go up. A drastic rise in home prices occurred recently between the years 2020 and 2021, where the median sales price of existing homes…

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Real Estate Word of the Day: Principal

Real Estate Word of the Day: Principal

Principal refers to the original amount of money borrowed to purchase a property. It's the initial loan amount that you agree to repay over time, often with added interest. Essentially, the principal represents the actual cost of the property, excluding interest and other fees.

The principal amount directly influences the terms of your mortgage loan, including the monthly payment amount and the total interest paid over the life of the loan. Typically, larger principal amounts result in higher monthly payments but may lead to lower interest rates if you have a good credit score and meet other lending criteria.

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Real Estate Word of the Day: Pre-Approval

Real Estate Word of the Day: Pre-Approval

A pre-approval is essentially a lender's conditional commitment to provide you with a mortgage loan of a specified amount based on your financial situation and creditworthiness. It's different from pre-qualification, which is a more informal assessment of your finances.

To obtain a pre-approval, you'll need to submit an application to a mortgage lender or broker, such as our preferred lender Think Mortgage. They'll review your income, assets, credit history, and other financial information to determine how much they're willing to lend you.

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Real Estate Word of the Day: Multiple Listing Service

Real Estate Word of the Day: Multiple Listing Service

Multiple Listing Service, often abbreviated as MLS, is a comprehensive database system utilized by real estate professionals to share information about properties available for sale or rent. It serves as a centralized hub where agents and brokers can access detailed listings of properties across a particular region.

Imagine an MLS as a vast network connecting real estate professionals, enabling them to collaborate and streamline the process of buying and selling properties. When a seller decides to list their property with a real estate agent, pertinent details such as the property's location, size, features, and asking price are entered into the MLS database.

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Real Estate Word of the Day: Homeowner's Association

Real Estate Word of the Day: Homeowner's Association

A homeowner's association is an organization within a residential community that establishes and enforces rules and regulations to maintain property values and quality of life for its residents. These communities can range from single-family homes and townhouses to condominiums and planned developments.

HOAs set forth rules and guidelines governing various aspects of community living, including architectural standards, landscaping requirements, noise regulations, and pet policies. These rules help maintain a cohesive and visually appealing neighborhood aesthetic.

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Real Estate Word of the Day: "As Is"

Real Estate Word of the Day: "As Is"

When it comes to buying or selling real estate, the term "as is" often appears, but what does it really mean? In simple terms, selling a property "as is" means that the seller is offering it in its current condition, without making any repairs or improvements, and without any warranties or guarantees regarding its condition. Essentially, the buyer accepts the property with all its faults, defects, and issues, if any, without the seller being obligated to address them.

For sellers, listing a property "as is" can offer certain advantages. It provides transparency about the property's condition upfront, which can save time and hassle during negotiations. Sellers are not required to invest additional time or money…

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Real Estate Word of the Day: Under Contract

Real Estate Word of the Day: Under Contract

When a buyer identifies a property they're interested in, the first step is to make an offer. Once the seller accepts the offer, the property transitions into the under contract phase. This period is often a time of anticipation and optimism for both parties involved. Being under contract essentially means that both the buyer and seller have agreed on the terms and conditions outlined in the purchase agreement. This agreement typically includes details such as the purchase price, closing date, and any contingencies that must be met for the sale to proceed smoothly. 

Contingencies, often included in the contract, are conditions that must be satisfied for the sale to move forward. Common contingencies…

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Real Estate Word of the Day: Inspection

Real Estate Word of the Day: Inspection

A home inspection is a thorough examination of a property's condition, typically conducted by a licensed and qualified home inspector. The primary objective is to provide a comprehensive assessment of the property's structural integrity, safety, and overall condition.

This process involves a detailed examination of various components, including:

• Structural Components - Inspectors evaluate the foundation, walls, roof, and other structural elements to ensure they are sound and free from defects.
• Mechanical Systems - This encompasses the inspection of heating, ventilation, and air conditioning (HVAC) systems, plumbing, and electrical systems to guarantee they function correctly.
• Interior and Exterior…

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