FREE Seller Handbook

Welcome to the wonderful world of real estate!
This is a very exciting time and we want you to feel comfortable and knowledgeable throughout the entire process.
We will listen to your needs, keep you informed, help you through the negotiation process, and ensure you achieve
the most marketable price for your home. I welcome you to communicate your feelings to me. After closing I will
still be there to assist you if needed.
National statistics and surveys reveal only 22% of home sellers were satisfied with the agent who helped them
buy or sell their home.
You will receive nothing but the best quality service from Team Knapp. We have put together a
state-of-the-art real estate practice with a team of top quality professionals who are available to service your
real estate needs in every capacity.
Do we have satisfied clients? YES! We survey every client after their real estate transaction, and we are proud
to say that our clients rave about the fabulous service they receive. In fact, we receive a 99% client satisfaction rating.
(We try to please them all!)
Team Knapp will strive to improve the services we provide. And, you’ll get the benefit of our experience including
the following:
¨ Advice to Help Your Home Sell Quickly - You’ll get suggestions for how to prepare your home so that it will
show its best. In addition, we’ll give you specific suggestions to improve the impression your house will make on
buyers.
¨ Pros and Cons of Contract Proposals - When we bring the contract proposals to you for your consideration,
we’ll explain them to you and include an estimated-closing-cost statement so that you’ll have all the facts to make
a good decision. During this step, we will use our negotiating skills that have helped thousands of sellers get top
dollar to help you get top dollar for your home as well.
¨ Process of Selling a Home - We’ll explain the entire selling process so there won’t be any surprises along the
way.
Thank you for choosing Team Knapp to help you with one of your most valuable assets! We hope you will be so
pleased with the experience that you will want to refer us to your friends and family!

Seller Options
Meet the Team
Establishing Common Goals
Easy Exit Listing Agreement
Myth vs Reality
24/7 Marketing - The Path to SOLD
Pricing - The Risks & How to Avoid Them
How to Determine Your Net Proceeds
Getting Your House in Showroom Condition
Last Minute Showings
The Process of Selling Your Home
Our Customers Say It Best
Checklist for a Hassle-Free Move
Glossary of Real Estate Terms

- Do Nothing Right Now.
- Sell Your Home On Your Own.
- Use a Conventional
(Transactional) Salesperson.
- Partner With Team Knapp.
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“You don’t build
it for yourself.
What you do
is know what
people want and
build it for them.”
-- Walt Disney

Kim Knapp
CEO/Realtor/Founder of Team Knapp & Real Dynamic Agents.
Loves mentoring & training.
“An astronaut does not get to the moon alone. I am grateful to the fantastic
staff and agents that provide support to Team Knapp and its customers. Team
Knapp has collectively sold over half-a-billion in the last 15 years. What is
more important, they have done so while maintaining a high level of customer
service. We would love the opportunity to earn your business, build a
friendship and be your resource for all things real estate. “
Cari Knapp
Licensed Realtor
Loves Amazon & being
creative!
Sara Galloway
Kim’s Personal Assistant
Office Manager
Loves her Navy husband!
Regina Kloosterman
Marketing Coordination
Specializes in organization.
Loves her family & reading.
Katrina Proulx
Licensed Listing
Coordinator/ Sales Associate
Loves her babies & hubby!
“They work together seamlessly. It was good to know someone would always
be available with information when we needed it.” Charles & Carly M.
ShowingTime
Appointment Center
The ShowingTime staff is
available 7 days a week to
schedule showings on your
home as well as notify you of
any changes to scheduled
showings!
“
” Donna
Quintard

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One of Team Knapp’s most important attributes is the energy we bring to your
home sale. This energy is the direct result of a true passion for real estate. Few
real estate professionals can match Kim’s passion for helping home buyers and
sellers like you make the most of your move.
Kim Knapp is one of the most respected and knowledgeable REALTORS in the
area and has enjoyed a phenomenal rise to the top of the real estate field. When
you’re facing critical surgery, you go to the best surgeon. When it’s time to buy
or sell your home, trust the expertise of Team Knapp.
There is a saying: People don’t care how much you know until they know how
much you care. For Team Knapp, this is crystal clear. Clients know that Kim is
truly connected with the successful outcome of each real estate transaction, has a
genuine concern for your best interests, and is always prepared to go the extra
mile.
1) You have questions regarding showings on your property.
2) You are going out of town.
3) You need flyers or brochures.
4) You have any questions once your home is under contract.
5) You are ready to schedule your move and need information about the area.

1. How many years have you been in the business?
2. What is your ratio of sales price to listed price?
3. What is the average number of days your listings are on the market before selling?
4. Would you please show me a copy of your marketing plan?
5. Could I have a copy of your standard purchase agreement?
6. How many homes have you sold in this area?
7. What if I sell my home myself?
8. Does my home need any repairs or changing in any way?
9. What is the length of your listing agreement?
10. What professional designations do you have?
11. Do you have any references with you now?
When you hire a real estate agent to represent you, that individual, starting day one becomes the
primary defender of your equity. The individual you choose should have the strongest
negotiating skills that you can find in the marketplace to protect your interests.
It is my job to put the best contract terms and the best price on the table for your benefit.

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What’s your biggest fear when you list your home with a real estate agent? It’s simple: You worry
about being locked in to a lengthy listing agreement with a less-than-competent real estate agent,
costing you valuable time and your home critical exposure to the market. Well, worry no more. Team
Knapp takes the risk and fear out of listing your home with a real estate agent. How? Through the
Easy-Exit Listing Agreement.
When you list your home with Team Knapp/Coldwell Banker Vanguard Realty, you can cancel
your listing at any time with a 15-day notice and RELAX, knowing you won’t be locked in to a
lengthy contract. Enjoy the caliber of service provided by a team that is confident enough to
make this offer.
Team Knapp has strong opinions about real estate service: If you are unhappy with the
service you receive, you should have the power to fire your agent. It takes a strong belief in
the quality of one’s service to take this kind of stand, but Team Knapp never settles for less
than the highest professional standards. Kim is confident you will be happy with the service
and results you receive. That’s the simple truth.
Call Team Knapp today to
find out more about how
unique and caring
service can make the
difference in your home sale.
Excellence….
Pure and Simple.

It is understood by all parties hereto:
Seller: ________________________________
Broker/Agent: Kim Knapp
That it is Team Knapp’s intention to work diligently to produce a
satisfactory buyer for the property located at:
__________________________________________________________________________
__________________________________________________________________________
If for any reason the SELLER decides not to sell the above mentioned property,
or
if the SELLER is not satisfied with the services rendered by the above
mentioned BROKER/AGENT, the listing may be cancelled unconditionally by
the SELLER at anytime with a 15 day notice, without any costs.
___________________________________
Kim Knapp
Coldwell Banker Vanguard Realty
__________________________________
Date
Excellence….
Pure and Simple.

“Discount” brokers can do an adequate job selling real estate.
Promotional costs such as photographs; brochures; newspaper,
magazine, and TV ads; MLS insertion fees; printing; direct mail;
personally distributed newsletters; professional support staff; Web-site
maintenance and fees; signs; bus benches; and more are paid for by a full-
service, full-fee agent.
Ask yourself:
„Will the discount broker offer a complete marketing campaign?
„Does the discount broker have a staff to personally attend to your specific needs?
„Does he/she have a proven track record of success, or is he/she using the
discounted commission to win our business?
„Does he/she have the expertise to guide you through problems that may develop
during the closing process?
„Will the discount broker be motivated during difficult times to go the extra mile
for you, or will they move on to another deal that doesn’t take so much of their
time?
„Your home is an asset to a discount broker and makes their phone ring. If your
home sells, they lose business. Why would they want to sell your home for a
discounted fee when they can make more selling other properties?
Remember that you only pay a commission if and when your property sells
successfully. The supply of buyers through your home will be very restricted if
marketing is limited.

Team Knapp sells a lot of real estate. Perhaps they are too busy to pay attention to my listing.
Just as superior restaurants are busy at dinner time and superior doctors have long patient
lists, Team Knapp’s success in marketing homes provides us with many more homes to sell.
Like good restaurants and doctors, Kim has set up a top-notch team to assist with the
routine details to free up agents to devote the time and attention required to sell your
property successfully. Kim built her business one satisfied customer at a time. For you to be
another satisfied customer who spreads the word about how well you were served is our goal.
You should select the REALTOR who says they can get you the highest price.
This is the oldest scam in real estate: Tell the seller what they want to hear, act excited, and
compliment the home to get the listing. Then ask for a price reduction in a few days or even a
few weeks. Don’t buy into that. Insist on a written, well-researched market analysis. Select
your REALTOR based on credentials and track record, and then use market data to decide on
price.
NEVER SELECT AN AGENT BASED ON THE PRICE THEY RECOMMEND!

SO WHAT EXACTLY IS 24/7 MARKETING?
WHY USE 24/7 MARKETING?
AND HOW EXACTLY IS ALL THIS ACHIEVED?
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OUR PRO-ACTIVE MARKETING PLAN
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Agents are working with
buyers who have seen what is currently on the market and are waiting for
something new to be listed. Therefore, most activity will take place within the
first thirty days of a listing. Your home will probably receive its best offers
during this time. After this initial period, the only people who come to look at
your home will be new buyers in the marketplace.
Potential buyers will not “make an
offer” because they probably will never see your property. They will view the
properties that are priced within their purchase-power range, knowing that they
cannot afford anything above their price range.
Your home
may become the example demonstrating the good value of other properties.
Your objective should be to enter the market in a position that will attract
prospects not drive them away.
Prospects may wonder why it has
been on the market so long or if something is wrong with the property, even
after you lower the price. You will likely have to settle for less than market value.
A house takes on a reputation surprisingly fast, so don’t wear out your welcome
on the market.
When your house is on the market a long
time, it hurts both financially and mentally. Prospects will not “rush” to make an
offer on an overpriced property, and you may be faced with accepting less when
they finally do.
The lender, through the appraiser they send to your property, must justify the
price to the market in order to approve a buyer’s financing.
As you can see, pricing your home correctly will make a tremendous difference
in how fast it sells and for how much. We make it our business to know the
market and price our clients’ homes to sell for the most money in the least
amount of time and we’re good at it. Just ask our past clients. If we need to talk
about price, we’ll call you or don’t hesitate to call us first.

uThe wrong prospects look at the property, if any look at all. People not only buy in price
ranges, they also only look in those ranges.
uCooperating agents don’t want to lose credibility with their buyers by showing them
overpriced listings.
uCooperating REALTORS know from experience that fair offers on overpriced properties are
often rejected.
uBuyers are often embarrassed to make offers considerably below the list price.
uThe property may become overexposed and shop-worn. Cooperating REALTORS and
potential buyers begin to assume there is something wrong with the property.
uEven subsequent price reductions do not regain the lost market. Many qualified buyers who
inspect overpriced listings decide at that point to eliminate the property from Consideration
now and in the future.
uWhen buyers see that a property has been on the market for a long period, they assume
they can get a bargain. Extremely low offers are likely.

A Costs Related to Sale of Home
„Commission: % of sales price
„Payoff first mortgage, estimated
„Payoff second mortgage/home equity
line, if applicable
„Interest from first of the month
through closing
„Flood certificate, if applicable
„Proration of real estate taxes
(January 1 through date of closing)
„Deed Stamps
„Recording fees
„Homeowner association dues, if
applicable
„Home warranty (optional)
„Title Insurance
„Buyer Closing Costs
Total Estimated Expenditures:
ESTIMATED NET PROCEEDS:

Here are a few great tips on creating an atmosphere that will charm buyers and make them want
to buy your home. Remember that you’ll never get a second chance to make a first impression,
and first impressions are what count! Follow these simple tips and create the competitive edge
that may help you sell your home more quickly.
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Trim trees and shrubs, clean out flower beds, and invest in a few flats of seasonal flowers. Paint
the front door, make sure that the doorbell is working properly, wash the mailbox, keep the
porch swept, and get an attractive mat for people to wipe their feet.
uStart by airing out the home. Most people are turned off by even the slightest odor. Odors
must be eliminated, especially those caused by dogs and cats, soiled diapers, and/or cigarettes.
uWash all the windows, inside and out.
uIf it has been more than a year since the carpets have been cleaned, now is the time to have
that done. Bare floors should also be waxed or polished.
uPut bright light bulbs in every socket made for a bulb. Buyers like bright and cheery rooms.
uClean out closets, cabinets, and drawers. Closets should look like they have enough room to
hold additional items. Get everything off the floor and don’t have shelves piled full to the ceiling.
uMake sure that rooms are not overcrowded with furniture. Select the pieces that look best and
store the rest.
uKeep the kitchen sparkling clean. Make sure that all appliances are clean at all times.
Straighten cupboards that appear cluttered and keep floors gleaming. Remove all art and
magnets from the refrigerator.
uBathtubs, showers, and sinks should be freshly caulked. The grout should be clean and in
good condition. There should be no leaks in the faucet or pipes.
u. If you have limited counter space in the kitchen, keep unnecessary items put away.
u. Keep children’s toys out of the front yard, off sidewalks, and away from the front porch.
u. Clean the ashes out of the fireplace.
u. Make sure that any pull-down staircases, such as to an attic, are working correctly. Be sure
that there is a light in the attic.
u If you have a pool, it needs to be sparkling and free of leaves.

u If your house is the least bit dated,
remove any wallpaper in the entry,
kitchen, or bathrooms and replace
outdated light fixtures. These things will
greatly add to your home’s desirability.
u Put a fresh coat of paint on interior and/
or exterior walls where needed.
u New appliances in the kitchen can be
an exciting feature that can actually make
the difference in a buyer choosing your
home over another.
u1When you leave the house in the
morning or during the day, leave it as if you know it is going to be shown.
u A little pleasant scent goes a long way-a couple of unlit candles or one plug-in is
sufficient.
u Make sure that all the lights are on and window treatments are open.
u Turn off the television.
u5Keep pets out of the way preferably out of the house. Many people are uncomfortable
around animals and may even be allergic to them.
u Leave your premises. Take a short break while your home is being shown. Buyers are
intimidated when sellers are present and tend to hurry through the house. Let the buyers
be at ease, and let the agents do their job.

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♦ Make sure that the front door presents well.
♦ Sweep steps, if needed.
♦ Pick up any out-of-place objects and store them away quickly.
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♦ Open window treatments and turn on lights.
♦ Put any dirty dishes into the dishwasher.
♦ Make the beds.
♦ Put any dirty laundry inside the washing machine.
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♦ Run a quick vacuum and/or sweeper to
give carpets and floors a fresh look.
♦Wipe down counters and tabletops.
While we would all like to have our houses
in showroom condition 24 hours a day, we
also know that we live in them. Do your
best to present your house in its best light
AND make sure that every potential buyer
has an opportunity to view it in that light.

Prospect considers the purchase of a home.
Buyer selects selling associate.
They discuss financial aspects and buyer’s needs.
Inspect homes that meet the buyer’s requirements.
Select a home.
Write and present offer through selling associate.
Possible contingencies.
Pre-settlement inspection.
Arrange for settlement data.
Arrange for inspections.
Attorney searches title.
Mortgage approval.
Arrange for roofing, plumbing, and well/septic certificates, if necessary.
Buyer completes mortgage application, appraisal, and credit report.
Closing day arrives!
Homeowner decides to sell.
Seller selects listing associate.
Seller and agent prepare the home for marketing.
Listing associate markets the home.
A showing results in an offer through the listing associate.
Possible contingencies accompany the sale.
Listing associate negotiates each contingency removal
Listing associate assists in arranging any necessary repairs
Listing associate keeps buyer agent and lender on track
Closing day arrives!
Our Past Satisfied Customers Referrals to Our Agents
Referrals From Area Corporations Monthly Real Estate Photo Magazines
Open House Visitors Potential Buyers Who Visit Our Office
Owners of Our Sold Listings Prospects From Signs
Classified Ads on Our Listed Houses National Relocation Referrals
Clients From Direct Mail Marketing Prospects for Our Newsletters

Questions to ask when I meet with a Team Knapp Agent:

I have known Kim for almost 10
years. She is not simply another
real estate agent. She takes time to
not only invest herself in causes
that makes the community better,
she invests herself in understanding
what is important to her customers.
When you work with Kim and her
team you know you are in good
hands. They are knowledgeable,
responsive and professional. I
wouldn't use anyone else. 5
Stars!!!!!
Celine D.
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Excellent Service! Had our house on the market
for almost 2 years before Team Knapp took over
the contract. Our house was sold in two months
under Team Knapp at the asking price. The
closing was made easy for us by Team Knapp. I
would recommend Kim and her team. 5 Stars!!
Russ & Betty Ost

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Kim, Katy, Cari, and Sara are
professional, knowledgeable,
and compassionate. They
made our dream come true
and we thank them from the
bottom of our hearts. I would
tell anyone and everyone to
feel safe placing their trust in
Kim's team. Thank you,
thank you, thank you!
George & Nicole
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We want to thank you so much for everything. Thanks for the
beautiful gift. Closing couldn't have gone more smoothly. You
showed us how to price our house to sell; you helped us set a
number that was reasonable to ask for. That worked out great!
Your people were all so nice. You have such a smooth-running
operation, and that sure makes things so much better at such a
stressful time. Everything just worked together so well. I didn't
really realize what a great presentation you made on our house
until I looked at a bunch of houses in Texas. Thank you again,
so much for everything. A really stressful time (especially for
two 76-year-old people) could not have gone any smoother.
Best wishes and blessings for your future,
Ken and Betty Hodges

❑ Notify and get refunds from your present utilities: gas, electric, water, cable, and phone.
Arrange for services at your new address. Notify long-distance phone company and arrange for
service at your new address.
❑ Have your car serviced if you are driving a long distance to your new home.
❑ Recruit people to help you on moving day.
❑ Arrange for someone to take care of your pets and children during the move.
❑ Arrange for moving your furniture and personal belongings either by hiring a moving company, or renting a
truck. Get estimates from several moving companies or truck-rental companies and be sure to obtain a hand
truck (appliance dolly) if you’re moving yourself.
❑ Gather moving supplies: boxes, tape, rope, and anything else you might need.
❑ Plan your travel itinerary and make transportation and lodging reservations in advance if you are driving to
your new home. (Leave a copy with a friend or relative.)
❑ Some moving expenses are tax deductible (if the move is employment-related), so you will want to save your
moving-expense receipts for tax deductions, including meals, lodging, and gasoline. Record expenses incurred
during your house-hunting trips.
❑ Develop a plan for packing. Pack the things you use the most last. See Tips on Packing in the next section.
❑ Notify others of your new address: post office, charge accounts, subscriptions, relatives and friends, national
and alumni organizations, church, mail order clubs (books, videos, catalogues), firms with which you have time
payments, and your past employer to make sure that you receive W-2 forms and retirement-account
information. Save your old address labels to speed up filling out change-of-address forms for your new
address.
❑ Notify federal and state taxing authorities or any governmental agency necessary.
❑ Keep moving materials separate so they don’t get packed until you are finished.
❑ Pick up rental truck if you are moving yourself.
❑ Fill up your car with gas and check oil and tires.

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❑ Decide what to move and what not to move. Possibly have a garage sale (extra cash and less
to move). See “Tips on Having a Garage Sale” on the next page.
❑ Transfer your bank accounts. Your new bank will be happy to open your account by mail
or email.
❑ Request records from doctors and dentists, including eye-glass prescriptions, dental x-rays,
and vaccinations.
❑ Obtain your children’s school records to make for an easier transfer.
❑ Draw up a floor plan of where your furniture should be placed. This will help avoid confusion
for you and your movers.
❑ Pay existing bills and close out local charge accounts.
❑ Arrange any special movers, that may be necessary for an expensive piano or to break down
and move a pool table or above-ground swimming pool.
❑ Cancel or transfer deliveries, newspaper, garbage collection, etc. Coordinate the transfer of
gas and electric, water and sewer when not handled by title company, with the next occupant
of your old home as well as with the previous owner of your new home, so as to avoid lapses in
service and extra re-start expenses.
❑ Check on personal items that might be at the photo shop, in a safe-deposit box, at a
neighbor’s house, on lay-away, or in a repair shop (e.g., shoe repair, jewelry store, small appliance
repair, or dressmaker).
❑ Make arrangements for transporting your plants and pets.
❑ Save the phone book from your former city residence for tying up loose ends or for future
correspondence.
❑ Transfer insurance policies or arrange for new policies.
❑ Gather all valuables, jewelry, important papers (birth certificates, deeds, documents) to take
with you personally.
❑ Pack an arrival kit of necessities just in case you arrive before the mover, if applicable.
❑ Purchase moving insurance. Your mover’s liability for lost or damaged goods will not equal
their replacement cost. Have valuable items appraised.
❑ Check with your attorney about your will, if crossing state lines.
❑ Ask for professional referrals if available (e.g., doctor, accountant, etc.).

❑ Give your children a chance to talk about their feelings and let them know how you are feeling too.
❑ Help them make a list of phone numbers and addresses of friends, relatives, and other
important people. Knowing they can stay in touch with these people will be reassuring.
❑ Visit your new home and line up some activities for your child to be part of after the move; a
sports team, music lessons, or a scouting troop.
❑ Stay as upbeat and calm as you can. Your own mood will impact your children’s moods.
❑ Involve your children in the packing. Older children can put their own belongings in boxes, and
children of all ages will enjoy decorating the boxes containing their things.
❑ Don’t pack things that your children treasure. Take special blankets, favorite books, and other
prized items in the car or on the plane with you.
❑ Help your children say goodbye to the important people in their lives. For their friends, a party
is a fun way to celebrate the friendship.
❑ For many families, moving day means a long car trip or a cross-country flight. Prevent
backseat blues and airline angst by adding travel fun and games to your plans.
❑ To make your new home seem more like home, hang your child’s or family portrait in a
prominent location or create a tabletop display of family photographs.
❑ Don’t spend too much time unpacking, at least not right away! In the first few days, take time
to enjoy your new home with your family. Take walks and check out local restaurants.
❑ Above all, listen. Be there when your children get home after the first day at their new schools,
even if it means having to leave work early. Ask often how things are going, and take time to
listen.
If you think moving is hard on grown-ups, imagine
what it’s like for kids. They’re starting over and trying
to meet new friends while getting used to a new
home, neighborhood, and school. Think about your
children’s specific needs before, during, and after the
change and you’ll make a big difference in how your
children feel about the move and how they adjust
afterwards.

Cats and dogs can either be shipped by air or taken along in the car. If you are flying to
your new
destination, your cat or dog can ride in the baggage compartment. Your pet will need a
health certificate from your vet. Call the airline in advance to find out about special
boxes they may have. If you are going to make a container for your pet, make sure that
the container complies with airline regulations. It is a good idea to put a piece of clothing
with your scent in the animal’s box so he/she feels more at home.
If you aren’t flying with your pet but are having him/her shipped by air, make sure that
someone is on the other end to pick your pet up at the airport and take care of him/her
until you arrive. The easiest way to care for your pet before your arrival is a kennel. Many
kennels can take your pet several days before your move (keeping him/her safe and out
of your way). Or you can take your pet to the airport and arrange to have a kennel on the
other end pick him/her up and take care of him/her until you arrive.
Think twice about taking your dog or cat with you on a long cross-country trip. Not only
can animals get car sick, but being cooped up in a car all day can make them nervous
and upset. They must be fed and have plenty to drink (make sure that you take along a
water dish), they have to make “rest stops,” and they have to be on a leash to keep them
from running off anytime the car door is opened.
Some motels and hotels don’t allow pets. Others have special facilities for handling
travelers’ pets. Call in advance and check out the available literature on hotels along your
route. National chains usually publish such information.
Hamsters, birds, mice, and such can be transported in the family car fairly easily. Make
sure that the animals have enough food and water in their cages and are out of drafts or
extreme temperatures.
Cover cages with a cloth to keep the pets quiet and restful.
It is not practical to move fish in their aquarium. A gallon of water weighs eight pounds.
Plan on giving the fish away and restock the aquarium when you arrive at your new
home.

The summary of the public records relating to the ownership of a particular piece of land. It represents
a short legal history of an individual piece of property from the time of the first recorded transfer to
present.
Consent to an offer to enter into contract.
A mortgage in which interest and payment rates vary periodically, based on a specific index, such as 30
year Treasury Bills or the Cost-of-Funds index.
Money credited or debited to either/both buyer and seller at closing, including real estate taxes,
association fees, garbage fees, rents, etc.
A mutual-consent, legal relationship in which a seller or buyer engages a broker-agent in the sale or
purchase of property.
A licensed person who represents the seller (and/or buyer) and who provides market assessment, offers
sales or buying strategy, recommends various services and sources important to the seller or buyer, is a
member of the National Association of REALTORS (NAR), and subscribes to NAR’s strict Code of Ethics.
A method by which monthly mortgage payments are equalized over the life of a loan, despite the fact that
the proportion of principal to interest changes.
The total finance charge (interest, loan fees, points) expressed as a percentage of the mortgage amount.
A professional and unbiased written opinion of a property’s value that is based on recent, comparable
sales; quality of construction and current condition; and style of architecture.
Increase in value to any cause.
The price at which a property has been placed on the market for sale.
The established value of a property for tax-assessment purposes, which may or may not reflect market
value.

The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing
note secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the
payment of a mortgage or deed for trust note.
A short-term mortgage, generally at a fixed rate of interest, to be paid back in predetermined, equal
monthly payments with a large final payment for the balance of the loan to be paid at the end of the term.
A person licensed to represent home buyers or sellers for a contracted fee. Brokers manage real estate
offices and employ licensed agents to sell properties.
A short-term mortgage made until a longer-term loan can be made; it’s sometimes used when a person
needs money to build or purchase a home before the present one has been sold.
State and local laws that regulate the construction of new property and the rehabilitation of existing
property.
A limit on the total amount an interest rate can be increased in a specified time and over the lifetime of
an adjustable-rate mortgage.
The taxable profit derived from the sale of a capital asset. A gain is the difference between the sale price
and the basis of the property, after making appropriate adjustments for closing costs, fix-up expenses,
capital improvements, allowable depreciation, etc.
The final settlement at which time the title is transferred from seller to buyer, accounts are settled, new
mortgages are signed, and all fees and expenses are dispersed or satisfied.
All fees, taxes, charges, commissions, surveys, lender fees, inspection fees, and other costs paid by the
buyer and/or seller at the closing.
A previously agreed upon percentage of the home’s sale price paid to the listing and selling agent(s).
Similar properties in type, size, price, and amenities that have sold recently, been adjusted, and are used
for comparison in the appraisal report.

Real estate ownership in which a property owner has title to a specific unit but shared interest in
common areas.
A condition that must be satisfied before a contract is binding.
An agreement to do or not to do a certain thing.
A contract ordinarily used in connection with the sale of a property in cases where the seller does not
wish to convey title until all or a certain part of the purchase price is paid by the buyer.
A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title
together with any other elements or records that may affect the marketability of the title.
Most popular home financing form not insured by Federal Housing Administration (FHA) or guaranteed
by Veteran’s Affairs (VA). Available from many lenders at varying rates, terms, and conditions.
Clause in an ARM permitting conversion from an adjustable loan to a fixed-rate loan.
An offer made by a buyer or seller to the other party, responding to the asking price or a subsequent
adjustment to that price to complete a purchase of sale.
Certificate of Reasonable Value. A document of appraisal issued by VA establishing their opinion of the
maximum value.
A term used by REALTORS that encompasses all that a buyer sees from the street that may induce the
buyer to look more closely at the property.
A legal “instrument” that conveys the title to a property from seller to buyer.
State and federal regulations that require sellers to disclose such conditions as whether a house is
located in a flood plain or if there are any known defects that would affect the value of the property.

Additional charges made by a lender at the time a loan is made. Points are measured as a percent of the
loan, with each point equal to one percent. These additional interest charges are paid at the time a loan is
closed to increase the rate of return to the lender so as to approximate the market level.
The buyer and lender determine the down payment requirements during the pre-qualification process.
The down payment is usually expressed as a percentage of the purchase price: e.g., 0%, 5%, 10%, 20%,
25%, 30%.
Money paid by the buyer at the time an official offer to purchase is submitted to the seller, intended to
demonstrate the good faith of the buyer to complete the purchase. Earnest money is applied against the
purchase price when the sale is finalized. Under certain conditions, the earnest money may be forfeited
if the buyer fails to complete the purchase under the terms of the sales contract.
A right to use the land of another.
A condition that limits the interest in a title to property such as a mortgage, deed restrictions, easements,
unpaid taxes, etc.
The difference between the sale price of a property and the mortgage balance owed on the property.
A mortgage based on the borrower’s equity in their home rather than on their credit worthiness.
A third-party account used to retain funds, including the property owner’s real estate taxes, the buyer’s
earnest money, or hazard insurance premiums.
The trading of equity in a piece of property for equity in another property.
The highest price an informed buyer will pay, assuming there is no unusual pressure to complete the
purchase.
The Federal National Mortgage Association (FNMA) is a privately owned corporation created by congress
to buy mortgage notes from local lenders and provide guidelines for most lenders to use to qualify
borrowers.

The act or process of estimating values of real estate or any interest therein for a fee.
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A loan made by a local lending institution and insured by the Federal Housing Administration, whereas
the buyer pays the premium.
A lender’s agreement to make a loan to a specific borrower on a specific property. An FHA or Private
Mortgage Insurance (PMI) agreement to insure a loan on a specific property, with a designed purchaser.
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A mortgage with a set interest rate for the entire term of the mortgage.
A loan insured by the Federal Home Loan Mortgage Corporation (FHLMC), a federally controlled and
operated corporation to support the secondary-mortgage market.
A legal procedure whereby mortgaged property is seized and sold as payment for a debt in the event of
default.
The nickname for Federal Home Loan Mortgage Corporation (FHLMC), Freddie Mac is a federally
controlled and operated corporation to support the secondary-mortgage market. It purchases and sells
residential conventional home mortgages.
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This mortgage offers low initial monthly payments that increase at a predetermined rate and then cap at
a final level for the duration of the mortgage.
A formal survey of a home’s structure, mechanical systems, and overall condition, generally performed
by an inspector or contractor.
A policy available to the buyer or seller as insurance against unanticipated home-repair costs.
A hazard insurance policy covering, at the very least, the appraised value of a house and property.
A written stipulation contained in an “offer to buy” that makes the sales contract predicated upon the
findings of a professional home inspector.

Long-term debts that usually extend for more than one month.
The predetermined charge or fee paid to a lender by the borrower for the use of monies loaned.
The holder of a mortgage or the permanent lender. Any person or institution that invests in mortgages.
Joint ownership by two or more persons with right of survivorship; all joint tenants own equal interests
and have equal rights in the property.
A contract ordinarily used in connection with the sale of property in cases where the seller does not wish
to convey title until all or a certain part of the purchase price is paid by the buyer.
The buyer makes a deposit for the future purchase of property with the right to lease the property in the
interim.
A legal claim against a property that must be paid when the property is sold.
A contract through which a seller agrees to terms and fees with an agent who will sell the property to a
buyer.
A written promise by a lender to make a loan under certain terms and conditions. These include interest
rate, length of loan, lender fees, annual percentage rate, mortgage and hazard insurance, and other
special requirements.
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The relationship between the amount of a home mortgage and the total value of the property.
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A commitment made by lenders on a mortgage loan to “lock in” an interest rate pending mortgage
approval. Lock in periods vary.
The actual price at which a property is sold.
The price that is established for a property by existing economic conditions, property location, size, etc.

Merchantable title, free and clear of objectionable liens or encumbrances.
Mold is a superficial and often woolly growth produced on damp or decaying organic matter or on
living organisms. See www.epa.gov/iag/molds/moldguide.html for a guide that provides information and
guidance for homeowners and renters on how to clean up residential mold problems.
A legal claim received by the lender on a property as security for the loan made to a buyer.
The lender of money or the receiver of the mortgage document.
An independent, third-party, licensed broker who arranges loan transactions between lenders and
borrowers by facilitating the application and approval process.
The consideration paid by a mortgagor for mortgage insurance either to the FHA or a PMI company. On
an FHA loan, the payment is one half of one percent annually on the declined balance of the mortgage. It
is a part of the regular monthly payment and is used by the FHA to meet operating expenses and provide
loss reserves.
The borrower of money or the giver of the mortgage document.
)
A system through which participating brokers agree to share commissions on a predetermined
percentage split on the sale of properties listed on the system.
This fee is a supplemental fee paid buy buyers to lenders, usually stated as a percentage or as points.
Any property which is not real property: e.g., money, savings accounts, appliances, cars, boats, etc.
Common real estate acronym meaning Principal, Interest, Taxes, Insurance.
A single percent of the loan principal, often charged by the lender in addition to various fees and interest.

When a borrower pays off an entire mortgage before the scheduled payoff date.
A fee included in the mortgage agreement that is required of the borrower in the event the loan is paid
of before the due date. Look for a clause that says, “There shall be no prepayment penalty.”
An informal estimate of the “financing potential” of a prospective borrower.
The amount of money borrowed against which interest and possibly fees will be charged. OR: One of
the parties to a contract.
Insurance issued to a lender by a private company to protect the lender against loss on a defaulted
mortgage loan. Its use is usually limited to loans with high loan-to-value ratios. The borrower pays the
premiums.
A written contract that contains a promise to pay a definite amount of money at a specific time in the
future.
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Proportionate division of expenses based on days or time occupied or used by the seller and/or buyer.
A written, legally binding contractual agreement between a buyer and a seller for the purchase of real
estate.
Ability of a borrower to satisfy a lender’s mortgage-approval requirements.
A colorless, odorless gas formed by the breakdown of uranium in sub-soils. It can enter a house
through cracks in the foundation or in water and is considered to be a hazard. Your REALTOR can
supply a radon brochure.
Any land and whatever by nature or artificial annexation is a part of it.
The recommendation by one agent of a potential buyer and/or seller to another agent either locally or
long-distance.
The process of applying for a new mortgage to gain better terms or use of equity.

A firm or person specializing in advising buyers or sellers on relocating to different and/or new
communities. There are designations for REALTORS that indicate additional educational training. Look
for the Certified Relocation Professional (CRP) designation.
The profit gained as the result of money spent on an improvement or addition to a home or property.
A statement or list providing a complete breakdown of costs involved in finalizing a real estate
transaction prepared by the lender’s agent prior to closing and reviewed at closing by the buyer and
seller.
The process by which a parcel of land is measured and its area ascertained. Title companies study the
survey to check for encroachments.
A legal document that defines the property, right of ownership, and possession.
An outstanding claim or encumbrance on property that affects marketability.
An insurance policy that protects the buyer against errors, omissions, or any defects in the title.
A highly detailed search of the document history of a property title for the purpose of identifying any and
all legal encumbrances to the property prior to title transfer to a new owner.
The Department of Veterans Affairs has made guaranteed mortgages available through banks and other
lending institutions to active military personnel, veterans, or spouses of veterans who died of service
related injuries.
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The final inspection by the buyers, usually in the company of the buyers’ real estate sales agent, to
ensure that all conditions noted in the offer to purchase and all seller-related contingencies have been
met. This inspection is most often completed immediately prior to the closing and after the seller has
vacated the premises.
Virtually all local communities have established specific restrictions for land use, new construction,
and remodeling activity. These are available to you through a local regulatory department such as the
Building Inspector’s Department or office or the Planning and Zoning Board.

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