By Christa Buchanan What does FDR mean? Not Franklin Delano Roosevelt, that’s for sure. Many first-time homebuyers think the hard part of the home-buying process — the endless paperwork and research that goes into getting pre-qualified for a mortgage — is over, but that’s not necessarily the case. First-timers are not only embarking into the foray of homeownership, they also are entering the realm of an often entirely new lexicon: Realtor lingo. Complete with such abbreviations as FFL — no, the home doesn’t have its own fantasy football league, but it does have first-floor laundry — acronyms like the notorious ARM, or adjustable rate mortgage, and an abundance of colorful home descriptions, Realtor lingo to the layman may be difficult to discern. “Short sale, everyone wants to know what that means,” said Realtor Bill Finn of Century 21 Town & Country in Grosse Pointe of the process of selling a home with an “upside-down value” for less than what is owed on it, which also means that the sale can take awhile to complete. “Then there’s, REOs, real estate-owned properties, people are often confused about that. There are a lot of things people don’t know unless they’re in the business,” he said, noting that such abbreviations as “CMA for comparative market analysis, NSFP for natural stone fireplace, HWH for hardwood floors and things like that” come as second nature to most Realtors. “There are a lot of abbreviations between agents, like BATVAI, which means buyers agent to verify information, or CSB — call selling broker — and often buyers will ask, “What does that mean? So, that can cause confusion because unless you’re an agent, you probably have no idea what these things mean,” said Realtor Joanna Darmanin of Century 21 Town & Country in Royal Oak. Most descriptive abbreviations are easily identifiable with a little scrutiny — two bedrooms and two bathrooms listed as 2B/2B, or 2BD/2BTH; fireplace as FP, frplc or fplc; and so on — but others can cause eyebrows to furl: What does pot’l mean? Portal? No, it’s actually potential. “If you slow down and look at it, you’ll probably figure it out,” said Darmanin of such abbreviations as LIB, WIC, att. lav. and t/o — library, walk-in closet, attached lavatory and throughout, respectively. As for descriptions, Darmanin said, you really have to “read between the lines.” “Lovingly maintained by original owner almost always means grandma house — it might be in really good condition, but it probably hasn’t been updated since 1972,” she said. That’s not to say certain attributes are necessarily negative, as some people are looking for a home to update. The same goes for handyman special or needs TLC, said Finn: “Handyman special means the home needs some repairs; it could need a lot of repairs but wouldn’t need to be demolished by any means. … Needs TLC, tender loving care, wouldn’t need as much work as a handyman special; maybe it would need to be cleaned or painted, or have the wallpaper ripped out” — again not always a bad thing for those looking to put a little elbow grease into their new home. “I’ve taken clients into move-in-ready (i.e. clean, freshly painted, updated and in good condition) homes and they start talking about tearing down a wall here or there. … Some people just really like renovating a home to their taste,” he said of zealous do-it-yourselfers. Listing descriptions are not meant to mislead buyers — the agents know that when people do a walk-through, they will notice such details — they are simply used to gin up interest in a home by giving the potential buyer a positive mental picture of the home; however, said Darmanin, home listings are beginning to be more straightforward. “In the past, listings were written to leave things up to the imagination, but now they really need to be specific,” she said. “People want their info straight up. They don’t want to look for it or analyze it; they want it in the simplest form possible. “People will just pass over listings if they feel there’s not enough information and will go on to the next one if it doesn’t mention the home has hardwood floors, for example,” said Darmanin, noting that this has caused some agents to “use a lot more abbreviations, which is confusing some people more.” So, how do you determine what the terminology of a home listing really means? Of course, you can spend time looking things up online, but the simplest and least time-consuming way to find out is to ask your Realtor. “Your agent’s job is to help you decipher everything: to navigate the neighborhood, review listing information and descriptions, the types of financing available — FHA (Federal Housing Administration) and VA (Veterans Affairs) loans or LC for land contracts. … The agent’s job is to make sure their client knows what they are getting into,” said Darmanin. To that end, Finn suggests buyers “interview multiple agents to find one who they are comfortable with and who will be a good source of information for any questions that may arise.” Oh, by the way, FDR is Realtor speak for formal dining room — so, now you know. Darmanin can be reached at (248) 225-7419 and Finn at (313) 886-5042. You can reach Staff Writer Christa Buchanan at cbuchanan@candgnews.com or at (586) 498-1061. |
