Real estate marketing is a complex field that has its own lingo which we explored in our blog post Get to know Real Estate marketing jargon secrets. In this article, we’ll continue to explore industry terms so you can get to know even more Real Estate marketing jargon secrets.
A short sale is the sale of property for less than the amount owed on the mortgage. A short sale can be a good option for homeowners who are behind on their mortgage payments and are unable to sell their home for its current market value. In a short sale, owners are agreeing to let go of their house by selling it at a lower price than what they owe on their loan. This often happens when a homeowner is underwater (owes more than their home is worth) or has fallen behind on their mortgage payments.
Comparative Market Analysis (CMA) for Real Estate marketing
Comparative market analysis (CMA) is a comparison of a property’s value to similar properties that have recently sold in the area. A Realtor will use this information to determine what price range is reasonable for a property, as well as how much they expect it to sell it for. They will also compare all the features of each comparable sale they find: location, square footage, number of bedrooms and baths, etc., so they can get an idea of how it stacks up against those properties.
When using a CMA:
- Make sure it’s recent — older CMAs aren’t updated regularly enough for current conditions. If there have been major changes since the CMA was created (like a new highway opening up), consider having it done again after things settle down some more.
- Use more than one source; each listing service may list different amounts for similar houses in the same neighborhood because they don’t always agree on values or which factors are most important when valuing homes. A few different sources usually give you a better idea about where yours fits into the local market than just one would alone does!
Foreclosure is the process by which a lender takes possession of a property from a borrower who has failed to repay their mortgage loan. This can occur when the borrower defaults on their mortgage loan and fails to make any payments for 90 days. Once this happens, the lender will typically send a notice to the borrower explaining that foreclosure proceedings are about to begin and that if all due payments are not made immediately, legal action may be taken.
This is typically done in two stages:
- Notice of Default – When a borrower has defaulted on their loan and stopped making monthly payments on time (or at all), they may receive notice from their lender stating that they have 30 days before foreclosure proceedings begin.
- Sheriff Sale – In some cases where foreclosure has been initiated, certain states allow lenders to hire sheriff’s officers who will physically remove occupants from homes by force if necessary during this stage of proceedings.
Customer Relationship Management platform (CRM) for Real Estate marketing
CRM stands for customer relationship management platform. It’s a digital system that keeps track of your contacts, their information and the interactions between you and them. It helps you create profiles for each of your contacts, which makes it easier to serve them better.
In addition to keeping track of your buyers or sellers, CRMs can also help you keep track of people who have expressed interest in buying/selling property but haven’t yet committed. This is called “lead generation” because it means that these leads are more likely to become customers if they’re properly managed through their journey from initial interest all the way through closing on a home purchase or sale.
Dedicated Real Estate specific CRM systems are valuable because they have additional industry relevant features like Open Home management tools, email marketing and integrations with marketing platforms.
For Sale by Owner (FSBO)
FSBO stands for For Sale By Owner. This is a term used to describe a property that is listed on the market by the owner, rather than an agent. FSBOs are generally more expensive than comparable listings because they often require more time and effort on the part of the seller, who must handle all aspects of their home’s marketing themselves.
Off Market Sale
Off market sales are properties that aren’t listed on the MLS and are not publicly marketed by an agent. This means that:
- Vendors (owner) rely on the Realtor’s network to find a buyer
- The general market is unaware that the property is for sale
- While marketing costs are greatly reduced, the lack of buyer demand may result in a lower sale price
Days on Market (DoM)
The DoM (Days on Market) is a measure of how long a house has been on the market. This can be useful when you’re building a CMA and want to know how pricing is affecting the local area sales. A DoM of 30 days is considered average in a stable market, while a DoM of 90 days or more is considered long.
A buyer’s agent is a real estate agent who works exclusively for the buyer. Buyer’s agents are paid by the buyer, not the seller (unlike listing agents). While every state requires listing agents to be licensed, there are no such requirements for buyer’s agents. This can cause some confusion among buyers in particular when they discover that a person who claims to be a “licensed” or “registered” real estate broker may not actually be licensed at all but rather simply referring to their status as someone who has taken and passed certain tests that show they know how to work with real property transactions.
While there is nothing wrong with hiring an unlicensed person as your buyer’s agent, it’s important that you know what you’re getting into before doing so. Some states do have laws against this practice; unfortunately, these laws tend to favor sellers more than buyers because many states require brokers and salespersons working on behalf of buyers (or representing them) must carry licenses issued by local Associations of Realtors or other licensing agencies authorized under state law.
While most states provide exceptions allowing non-licensees some latitude when representing parties outside their circle of influence (friends or relatives), few provide any exception where misrepresentation occurs due to fraud perpetrated by those persons claiming themselves as licensed professionals but who aren’t really licensed at all!
Real Estate marketing jargon conclusion
These are just some of the common terms used in real estate. There are many others and more coming out all the time. The important thing is to learn them so you can better understand what your agent or broker is talking about when they mention one of these words!