I know that while I am used to using and seeing these terms on a daily basis, my clients might need a reference to all the terms they hear during the transaction process so I put together a list of words and their definitions that you will hear over the course of a transaction.
Adjustable Rate Mortgage (ARM)- The interest rate is tied to a financial index making the monthly mortgage payment go up or down over time.
Annual Percentage Rate (APR)- The percent of interest that will be charged on a home loan.
Appraisal- A report highlighting the estimated value of the property completed by a qualified 3rd party. This is typically done for the benefit of the buyer to ensure the property is worth what they are paying.
Association Fee/HOA Fee- In addition to a mortgage, certain housing communities such as townhomes have a monthly fee associated with maintaining the common areas and amenities.
Balloon Mortgage- A long-term mortgage loan that starts small but as a large payment due at maturity.
Closing- This is the final meeting where the buyer and seller sign the necessary paperwork, complete the transaction, and release/take possession of the property. Usually the representing agents and attorneys attend.
Closing Costs- The buyer and the seller have expenses associated with the transaction other than that of the actual cost of the home. For example, the buyer has a variety of fees due for obtaining a new loan and the seller must pay commission to both agents.
Closing Disclosure- A form that provides the final details about the mortgage loan. It includes loan terms, projected monthly payments, and how much the extra fees will be.
Collateral – Something of value (in this case your home) that is held to ensure repayment of a mortgage or loan.
Commission- A percent of the sale price of the home that is paid to agents. The seller pays commission to both the buyer and listing agent.
Comparables- Homes in the area of interest that have recently sold that have similar features.
Contingencies- Conditions which must be met in order to close. Contingencies are typically tied to a date, referred to as a deadline. If the contingency is not satisfied the contract may be cancelled.
Counteroffer- The response from the seller in regard to an offer.
Debt to Income Ratio- A lender will look at a borrowers debt versus income to determine the amount of loan they are eligible for and if they can repay their debt plus the home loan.
Down Payment- A percent of the cost of the property that is paid up front as part of the mortgage.
Earnest Money – The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party. Upon closing the money will generally be applied to the payment or closing cost.
Escrow- This term has multiple meanings; earnest money is typically held by a third party until closing in “escrow” . It can also be referred to as the time period from when the contract is written and accepted by the seller to when the home actually closes.
Equity- The difference in the market value of a home versus what is owed on the home.
FHA- A mortgage that is financed through a private lender and insured by the Federal Housing Administration, often requiring a lower down payment and income to qualify.
Fixed Rate- The interest rate will remain the same for the entire life of the mortgage.
Home Equity Line of Credit- A loan or line of credit that is determined based on the equity or homes value after subtracting the loans owed.
Home Inspection- The process in which a professional inspects the seller’s home for issues that are not openly apparent, then creates a report for the buyer to review.
Home Protection Plan- An annual service that covers the cost of repairs or replacements to items covered in the plan; items like stoves, washer/dryers, etc.
Hybrid- A loan that starts with a fixed rate period, then converts to an adjustable rate.
Mortgage Insurance- Insurance written in connection with a mortgage loan that protects the lender in the event the borrow cannot repay their loan. This is usually not required if the borrower has 20% or more for the down payment.
Mortgage Note- A promise to pay a sum of money at a standard interest rate during a specific term that is secured by a mortgage.
Multiple Listing Service (MLS)- The National list of real estate properties that are available for sale. These are the most reliable sources to receive up-to-date listing information.
Pre-Approval- The process in which a buyer must provide a mortgage professional the appropriate information on income, debts, and assets that will be used to make the initial credit loan decision.
Pre-Qualification- Once approved for a loan, this is the process in which the maximum sale price, loan amount, and monthly payments are calculated for the borrower. This is not a loan approval however, it is useful to know prior to searching for a home.
Principal- The underlying amount of the loan which is actually borrowed.
Property Taxes- These are the taxes that are enforced by the city, town, county, and state government entities. These taxes are included in the total monthly mortgage payment and are held in escrow by the lender.
REO- Real Estate Owned properties or foreclosed properties currently owned by a financial institution such as the bank that made the loan to the previous owner.
Reverse Mortgage- This is specifically for seniors and it allows them to convert the equity in the home to cash.
Short Sale- A situation when the seller’s lender is willing to accept an offer and allows the sale to completed for an amount less than the mortgage amount owed by the seller.
Title- A legal document proving current and proper ownership of the property. Also referred to as a Title Deed, this document highlights the history of property ownership and transfers.
Underwriting- The process in which the potential home buyer is evaluated for their financial ability to repay a loan. This normally consists of a credit check and appraisal of the property.
VA Loan- Loans that are given to Americans who have served in the armed forces. They are administered by the Department of Veteran Affairs.
I am so excited to announce I have completed the training to receive the CLHMS designation. Recognized as the mark of accomplishment in luxury markets around the world, the Certified Luxury Home Marketing SpecialistTM (CLHMS) designation assures affluent buyers and sellers that the agents who have earned it have the knowledge, experience,competence, and confidence they require. Membership with this organization will keep me on the cutting edge of the luxury market- equipping me with the right skills and network to sell your million dollar + properties.
CLHMS designation is only awarded to Institute Members with documented sales performance in the top 10% of their market.
What can my CIPS designation do for my clients?
Global transactions are significantly different and more complex than domestic deals. From currency issues and financing to visa and tax laws, working with a REALTOR® who knows how to handle these differences can make or break a real estate transaction. Because of these nuances, it is essential to work with a knowledgeable and trusted professional, such as Laurie Way, a CIPS designee.
What is the CIPS Designation?
A Certified International Property Specialist (CIPS) designee has undergone specialized training to complete global transactions seamlessly and with reduced risk
The CIPS designation is the only international designation recognized by the National Association of REALTORS®. Only REALTORS® who have completed the coursework and demonstrated considerable experience in global business can call themselves a CIPS designee, and use the name and logo.
My certification is valuable because I have training in:
- Currency and exchange rate issues
- Cross-cultural relationships
- Regional market conditions
- Investment performance
- Tax issues
I can now help clients do business in over 45 countries, and ensure that the client will receive the same level of service no matter where the real estate transaction is.**
**Resources: National Association of Realtors Website.
Exploring: Queen Anne
Depending on the time of year you are looking at, you may be able to attend one of the many outdoor festivals held at Seattle Center including: Bumbershoot, Folklife Festival, and Bite of Seattle.
The local radio station KEXP also hold free concerts at the mural amphitheater in the summer months. Stop by and watch them broadcast from the new La Marzocco Cafe, with a viewing window directly into the DJ Booth!
Go up 605 feet into the Space Needle! If you haven’t done it, you are obligated, it is absolutely the best view of the entire city and the sound. Opt to have dinner in the restaurant if you don’t want to come down just yet. If you don’t go up at least go to Kerry Park on Highland Drive, and have a look at the needle from afar. It’s an excellent place to take in the sunset!
MoPop! (Formerly EMP) Museum of Pop Culture
Rotating exhibits at the MoPop! From music and art to sci-fi, fantasy, and the indie game revolution. This place is so cool! Even if you don’t go inside be sure to stop by and check out the architecture and walk the grounds. The building was designed by Frank O. Gehry, and the building appears to change color from different angles. MoPop museum is a non profit interested in empowering it’s visitors, and contributing to art education.
Grab a Bite!
From coffee shops to restaurants, from lower Queen Anne to the top of the hill, there are so many options for food and drink…The following is no where near a complete list, just a place to start:
Mezcaleria Oaxaca: Bustling stop for Mexican classics
Crow: New American comfort food in hip setting
Via Tribunali: Neopolitan pizzeria and bar
Toulouse Petit Kitchen & Lounge: Hip Cajun-Creole sport with a cozy, New Orleans- influenced dining room, and & optional fixed-price menu. Pro tip: to sample more of the menu check out the happy hour specials!
How to Cook a Wolf: An Ethan Stole Restaurant, specializing in Italian Mediterranean cuisine.
This is by no means a complete list of things to do or places to eat in Queen Anne, you’re going to have to check it out for yourself! Go Explore!
What to do in Ballard
Shop Till You Drop!
Ballard Reuse: Funky Reused Building materials and items, with a focus on architectural salvage…Just up on Market St. Bop Street Records for the music junkie with heaps and heaps of vinyl! Check out Stores like: Horseshoe, Trove Vintage, Space Oddity, Dutch Bike Co, Re-Soul, second ascent.
Eat Eat Eat!
There is no shortage of delicious eats in Ballard! Some of my favorites are La Isla: Authentic Puerto Rican Cuisine. Senior Moose is a local favorite, with some of the best Mexican food in town! Stop in and have a Top Pot Donut, or try the famous oysters at Walrus and Carpenter.
Every Sunday Old Ballard Ave closes it’s streets to cars and opens for the local farmer’s market. Do your shopping local and pick up a variety of local goods and organic, fresh local fruits and vegetables! Who doesn’t want to shake hands with the person that grew their food? Check out items such as local fresh seafood, local honey, and more. Pick up a growler of local beer, a fresh pie, some soda, mustard, jam, or ice cream. Not to mention the booths of local artists and craftsmen! This is not to be missed!
Here, the fresh waters of Lake Washington and Lake Union drop 22ft into saltwater Puget Sound. 100,000 boats pass through the canal and locks annually. Go when the salmon are spawning and see fish-ladder activity through underwater windows, stroll through the gardens and visit the museum.
Have a bonfire and watch the sunset over the Olympic Mountains! The park features two wetlands and a short trail. Enjoy activities from sunbathing to fishing to stand up paddle boarding. The parking can be a struggle during the summer months. Walk down to Un Bien, a colorful shack offering Caribbean sandwiches made with roast pork & served on Macrina bread. Wed-Sat: 11-9, Sun: 11-8
Luxurious home in tranquil setting. Just a few blocks from the beach! Open floor-plan features chef’s kitchen with granite slab and custom cabinets. Brazilian cherry hardwoods on the main floor, wood-wrapped windows, two amazing covered decks, crown molding, custom landscaped backyard & patio. Study/den with gas fireplace, great room with gas fireplace. This home boasts two glorious master suites, one on the second level with coffered ceilings and private five-piece bathroom with walk-in closet. Second floor also has a media room and three additional bedrooms & full bath! Serene private master bedroom or guest suite with three-quarter bath & sitting room on top floor. Path to beach in neighborhood, close to schools.
- Bedrooms: 5
- Baths: 3.25
- Square Feet: 3,536
- Area: Dash Point/Federal Way
- Year Built: 2007
- Heating: Forced Air
- School District: Federal Way
- Parking: Garage-2
- Fireplaces: 2-Gas
- 2016 Taxes: $5,615
- MLS #: 1107172
- Offered at $650,000
To view more information about this home, including 3-D tour, Floorplans and more click here.
It’s official! Bain Awards were handed out yesterday and Team Way was awarded: International Diamond Society!
We couldn’t be more proud! Here we are with our managing broker John Deely! Thanks so much everyone!
Please join me for my client appreciation event on Saturday May 20th, 2017!
Who: YOU! That’s who!
What: Client Appreciation- Bring your old electronics and any documents you would like to have securely shredded! Dante’s Hot Dogs will be provided, and free parking is available! Stop by and say HI!
When: Saturday May 20th, 2017 10:00AM- 1:00PM
Where: 1200 Westlake Avenue North, Seattle WA 98109 Parking Validated in the lower paid lot!
Why: Because I love my clients!