Those working in the real estate industry use a lot of lingo, and often forget not everyone knows their lingo! Here's a list of commonly used terms, and an explanation of each:
1. CMA- Stands for "Comparative" or "Competitive Market Analysis." It's a report that shows properties that are comparable to the property you are looking to purchase or sell, also known as "the subject property." Realtors compare prices of properties that were recently sold and currently listed for sale to help them and customers gain some perspective. It's one of the tools used to help determine a fair offer, purchase, or list price.
2. BPO- Stands for "Broker Price Opinion." It's an opinion of value as performed by a real estate agent or broker. It is not an appraisal. The agent or broker looks at market trends, comparable listed and sold properties, neighborhood information, and cost of any repairs needed, and other variables to determine a marketing strategy, list price, and estimated price the property will sell for within a certain time frame. Broker Price Opinions are usually performed for lenders or asset management companies.
3. Short Sale- Means selling or attempting to sell for less than is owed on the property. Also referred to as "selling short." Sellers often attempt to sell short to avoid foreclosure or sell a property faster. In order to sell short, the seller’s lender must approve the sale.
4. REO- "Real Estate Owned" is property owned by a lender. It's often used instead of saying "foreclosure," but is not always a foreclosure situation.
5. MLS- The "Multiple Listing Service" is a service used by real estate agents. The MLS collects information on properties that were for sale, and are for sale by all agents belonging to the service. It's a powerful data center. Listing information can be syndicated out to many real estate sites reaching a huge audience.