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Real Estate Terms part 2

 


It’s not uncommon for home buyers to have questions about basic real estate concepts and terminology.  Its part of a realtor’s job to guide their clients through this process as they make what’s likely the biggest purchase of their lives.  Reach out to one of our agents if you have more questions, we are always ready to help!   

 

Acceleration Clause- this is a contract clause requiring the borrower to repay their entire outstanding loan to a lender if certain requirements -- outlined by the lender -- aren’t met.

 

Annual Percentage Rate- the (APR) is the amount of interest charged on your loan every year.

 

Comparable Sales - are used by an appraiser to establish a home's worth based on what other similar homes in the area have sold for recently. Only homes that have legally closed count as a comp -- and most lenders and insurance providers require appraisers to use at least three closed sales.

 

For Sale By Owner -Homes listed as “for sales by owner” (FSBO) are being sold without the help of a real estate agent.

 

Contingency are certain events that must occur or the contract can be considered void. I.E. successful building inspections, other testing, a passed appraisal…

 

Mortgage - is the agreement between a borrower and a lender giving the lender the right to the borrower’s property if the borrower is unable to make loan payments (with interest) within an agreed upon timeline.

 

Multiple Listing Service (MLS)-a regional database of listings.  Each database has its own listings, requires agents to pay dues for access, and allows agents to share listings across regions -- without paying dues to each one. It is widely considered the most comprehensive listing service available.

 

Pre Approval-Before submitting an offer on a home (or even enlisting the services of a real estate agent) you’ll likely be required to get pre-approved. This means a lender has checked your credit, verified your information, and approved you for up to a specific loan amount for a period of up to 90 days.

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    What does that mean? Real Estate terms and definitions.

    It’s not uncommon for home buyers to have questions about basic real estate concepts and  terminology.  It’s part of a realtor’s job to guide their clients through this process as they make what’s likely the biggest purchase of their lives.  Reach out to one of our agents if you have more questions, we are always ready to help!   

     

    Active Under Contract- A house is listed as “active under contract” when the seller has accepted an offer with contingencies, but still wants the house to be actively listed. In this situation, the seller may be accepting backup offers in case their current offer fails to meet its contingencies.

     

    Appraisal-is an unbiased estimate of how much a home is worth. It is typical for a lender  to require an appraisal by a third party (the appraiser) to make sure the loan amount requested is accurate. 

     

    Clear Title Also known as a "just title," "good title," or a "free and clear title".  A clear title doesn’t have any kind of lien or levy from creditors. It means there's no question of legal ownership of the property.

     

    Closing Costs expenses outside the purchase price of the property, necessary to transfer legal ownership of property.  As a general rule, they are 2-5% of the purchase price.  They may include such items as; attorney fees, title search, title insurance, taxes, lender costs, recording fees…

     

    Contingency are certain events that must occur or the contract can be considered void. I.E. successful building inspections, other testing, a passed appraisal…

     

    Earnest money deposit is a deposit (usually 1-2% of the home’s total purchase price) made by a home buyer at the time they enter into a contract with a seller. Earnest money indicates the buyer's interest in the property and is typically deducted from your total down payment and closing costs.

     

    Easement-A legal right to use another person’s land or property while leaving the title in the owner's name.

     

    Escrow-is part of the home buying transaction. It happens when a third party holds something of value during the transaction.

     

    Home Inspection-an evaluation by an impartial third party to determine the condition of a property during a real estate transaction.  An inspector will report on such things as a home’s heating system, the stability of the foundation, and the condition of the roof. The purpose of the  inspection is to identify major issues that might affect the value of the home and the stability of your and your lender’s investment and return.

     

    Loan to Value is the ratio of the mortgage loan balance divided by the home’s value. It shows how much you’re borrowing from a lender as a percentage of your home’s appraised value.  The higher your LTV, the riskier you’ll appear during the loan underwriting process because a low down payment denotes less equity or ownership in your property 

     

     

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      Real Estate and COVID-19 UPDATE

      UPDATE

      Real Estate and COVID 19

      Limited in-person Real Estate appointments may be arranged as of Monday, April 20, 2020.  Our agents at Greentree Real Estate are here to serve you, whether that is a limited in-person appointment, answering questions, or handling any of your Real Estate needs. 

      Call or contact Greentree Real Estate, today!  802-453-5232

      Knowledgeable decisions pay off ~ Give that new home a check up!

      Why should I have a home inspection? 

      When purchasing a new home, an inspection is an important step.  A home inspection is defined as a physical evaluation of a specific home/property and educates and informs you on the functional conditions of the home you are considering purchasing. 

      As the buyer, you pay for the inspection, which will cost between $250 and $500.   But don't let that stop you. Without an inspection, you could be making the biggest investment of your life in a lemon.  Even with a brand new house, there may be hidden problems that only a professional inspector can find.

      The major areas usually covered in a home inspection include: foundation, construction, plumbing, heating/cooling systems, electrical, and interior.  Other items include: septic/wastewater, air quality (radon, etc….testing), water quality and more.

      The inspector will provide you with a printed report showing the findings for the home. This report will provide the facts and will include photographs. If you need to renegotiate the purchase contract to include repairs consult your Realtor. If the inspection report is clean, it's time to get ready for the big day: the closing.  

      Search our website for the latest listings & contact our agents, today @ 802.453.5232 or @ www.vermontgreentree.com

      We’re ready to assist YOU!

      Greentree Welcomes Mike Loner as New Salesperson

      Greentree Real Estate Welcomes Loner

      Monkton, VT Greentree Real Estate is delighted to welcome Mike Loner as their ninth licensed Rea Estate Agent. Loner joined Greentree this month as a newly licensed Realtor.

      Mike has spent the last 13 years as the Executive Director and CEO of the DREAM Program, a nonprofit mentoring organization that matches college student volunteers with youth and families from affordable housing communities. He is also a Council Member of the Governor's appointed Children and Family Council for Primary Prevention, and is the Hinesburg representative to the Board of Directors of the Champlain Housing Trust. Mike is a University of Vermont graduate with a Masters degree in Public Administration.

      With Mikes past experience and current volunteer roles, we feel confident he will be an asset to our agency and will hit the ground running, Bill Martin, owner and managing broker of Greentree Real Estate.

      Mike lives with his wife and daughter in Hinesburg. Together, when their daughter is not playing soccer, they love hiking, backpacking and spending time outdoors.His work with the housing community has made him passionate about housing and helping people find their home. Mike looks forward to working with both buyers and sellers and can be reached at (802) 482-5718 or mike@vermontgreentree.com.

      Greentree Real Estate is located in Monkton, Vermont and is owned by Bill and Phyllis Martin and Katrina Roberts. Greentree Real Estate serves both buyers and sellers primarily in Addison and Chittenden Counties and throughout the Champlain Valley. For more information, please visit www.vermontgreentree.com.

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        Monkton Town Wide Yard Sale

        It's that time of year again! The Annual Monkton Town Wide Yard Sale is taking place Saturday, May 19th from 9am to 1pm at the Monkton Fire House. Come out and find some great deals while supporting local Girl Scouts in our community or host your own yard sale at your home.

        The event will take place both inside and outside the Monkton Fire House on State Prison Hollow Road and at homes throughout Monkton. If you would like to host a yard sale at your home or rent a table at the firehouse, please contact Jamie Steadman at 802-338-6731 or jls2499@gmail.com. The cost is $10/table at the fire station or $10 for a sign for your yard and you will be added to the map that will be handed out the day of the event.

         

        This is a fun community event and a great fundraiser for the local Girl Scout troops.

         A bake sale table and lunch items will be available again this year!

         

         

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          Greentree Real Estate Welcomes Casco

          Monkton, VT -- Greentree Real Estate is delighted to welcome Margo Plank Casco as their seventh licensed Real Estate Agent.   Margo joined Greentree in September 2017 as a newly licensed Realtor.   

          Margo is a native Vermonter from Charlotte who graduated from the University of Vermont with a Bachelors of Arts in Studio Arts.  She has extensive experience as a photographer where she worked locally for over five years post college.  She transitioned into banking for the past six years with concentrations in business banking and personal banking including home lending. 

          "With Margo's enthusiasm for the industry and experience with home lending and photography, we are thrilled that she is starting her real estate career with us!" Bill Martin, owner and managing broker of Greentree Real Estate.

          Margo loves traveling, camping and spending time with her husband and two dogs in their newly renovated home in Hinesburg.  She is a passionate and active volunteer for Hands to Honduras (www.handstohonduras.org) which is a partnership program bringing together North American and Honduran communities to provide educational, technical, cultural, and humanitarian assistance to the Atlántida coastal region. She looks forward to working with both buyers and sellers and can be reached at (802) 453-4190 or margo@vermontgreentree.com.

          Greentree Real Estate is located in Monkton, Vermont and is owned by Bill and Phyllis Martin and Katrina Roberts.  Greentree Real Estate serves both buyers and sellers primarily in Addison and Chittenden Counties and throughout the Champlain Valley. For more information, please visit www.vermontgreentree.com.

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            Greentree Real Estate goes above and beyond with Lab Camp

            At Greentree Real Estate we recently sold a house in Milton and told the owner that we would foster her Chocolate Lab until her new home was ready.

             

            The owner was trying to explain to her young son where their dog Ruby was. She told him that Ruby was at Lab Camp for the summer.

            We finally got them all to sit still for a picture. Here is Nellie, Lola, Ruby, Dozer and Malcom at Lab Camp:

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              Drones in Real Estate Marketing

              Nationwide in real estate we have been hearing a lot about the use of drones to take aerial pictures of properties for sale.

              The FAA (Federal Aviation Administration) has now proposed rules regulating the use of drones due to mishaps with air traffic and also due to Homeland Security issues.

              Well, here in Vermont at Greentree Real Estate we don't use drones. We use a professional photographer - Buzz Kuhns - who goes up in a Cessna 172 Skyhawk with a local pilot when to take aerial photos of the many properties we represent for sale.

                               Adirondack feel home in Lincoln VT                            Lake Champlain home in Addison VT

                                                            

              Interested in having your home featured on many local and over 100 national websites with aerial photos for sale by Greentree Real Estate? Contact one of the eight agents at www.vermontgreentree.com or call 802-453-5232. We are local and we are here to help you. We even photographed our office in Monkton.

                                                                

               

               

               

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              Vermont Restaurant Week

              The end of April brings a lot of rain showers, muddy roads and Restaurant Week to Vermont!  It's the perfect time of year when the season is changing as well as menus, and Vermont's finest restaurants show their stuff.  I've got 3 planned reservations and hope to make a few more!  Here's a link to the detailed website where you can see what restaurants are participating and what prix fixe menu options are being offered.

                  

              The recap -

              What: Vermont Restaurant Week

              When: April 24th - May 3rd

              Who: Too many restaurants to name --- take a look at the website!

              How: Visit http://www.vermontrestaurantweek.com/

              Bonus: The event raises money for the Vermont Foodbank so you eat wonderful food and it benefits others.  It's a win/win!