ACRONYMS And GLOSSARY

Comments(6)

• 
  DaveT17th July, 2003

  Great idea Joel.
  
  Here are a couple more abbreviations I have encountered in my travels that you may consider adding:
  
  GRM = Graduated Rate Mortgage
  PSA = Purchase and Sale Agreement
  LP = Lease Purchase, Lease with Purchase Option
  LC = Land Contract
  
  A couple of corrections for your consideration:
  
  LLC = Limited Liability Company
  PMI = Private Mortgage Insurance
  
  And finally, a question. I have always heard and used "Comps" interchangeably with CMA in the sense that when asking for "Comps" I really want the "sale prices" for comparable properties. Is this usage of "Comps" (a little broader than just "comparable properties" correct?

• 
  joel17th July, 2003

  Thanks Dave for the extra Acronyms and Corrections.
  
  I think your right about Comps and CMA. I think Comps is just for a basic overview and a CMA is a little more legit and in depth.

• 
  JerryF18th July, 2003

  So if I understand correctly, comps are technically just sale prices on homes in the same neighborhood with similar numbers of beds/baths/garage spaces, while a CMA might detail things like square footage, lot size, and equipment. Is this correct? Should I be comping to current market asking prices, or to something more concrete like actual sale prices over the past couple of years?

• 
  jvano18th July, 2003

  Very cool. Thanks.
  
  Jason

• 
  DaveT20th July, 2003

  [ Edited by DaveT on Date 07/20/2003 ]

• 
  DaveT20th July, 2003

  Quote:So if I understand correctly, comps are technically just sale prices on homes in the same neighborhood with similar numbers of beds/baths/garage spaces, while a CMA might detail things like square footage, lot size, and equipment. Is this correct? I use the term "comps" to mean recent sale prices for comparable properties. Lot size and equipment would more likely be found in an appraisal. I never expect comps, or a CMA, to include lot size or equipment.
  
  Here is my take, for what it is worth. When I ask a real estate agent to give me comps for a given property, I am looking for the recent sale prices for similar properties in the same neighborhood.
  
  A Comparative Market Analysis (CMA) will take those same "Comps" and attempt to forecast the most likely sale price for the given property.
  
  If I have a property for sale, I want to know how much similar properties have recently sold for (the "comps", then I try to look at my property and determine how it stacks up against the "comps" properties. When I assign a value to my property based upon the "comps", I have done a CMA.
  
  Quote:Should I be comping to current market asking prices, or to something more concrete like actual sale prices over the past couple of years?Actual sale price, or contract price. The more recent the sale, the more realistic you can be with your CMA. The list price is just the seller's wishful thinking and may be unreasonable for the market.