Real Estate FAQ Sheet

Regular Sale, Standard sale or Equity Sale

When a home owner makes a contract (listing) with a broker to sell the house, the broker will place the "listing" on the Multiple Listing Service (MLS). The MLS is the database of houses for sale. The owner has “Equity” (a home with liens less than the value) and does not need bank approval for the sale.

Short sale

When a home is sold for less than the current loan(s) on the property, it is a short sale. The bank must agree to the final sale price and conditions. Often the seller must meet certain qualifications.

 Foreclosure or, Real Estate Owned [by the bank], REO or Bank owned

All of these terms mean about the same thing. The bank owns the property. The bank asset manager lists the property for sale with a local real estate agent. REO houses are usually vacant.

Auctions

An auction is event where numerous buyers bid on a house. The house is sold to the highest bidder. Sellers sometimes have a reserve price/minimum price they will accept. The house is retained by the seller.

Sheriff's Auction 

The bank foreclosure is usually conducted by an auction of the court house steps. It is conducted by the Sheriff. Civil suits also result in property being sold at auction.

Public Auction

Banks will sometime send a group of unsold REO properties to a large auction company who advertises and sells numerous properties in a single day.

The bid price might not include the required costs and commissions. They are added above the bid price.

Agent classifications

A real estate broker is licensed by the state to assist buyers and sellers in real estate transactions. A real estate sales agent works for a real estate broker. The broker can represent the seller, buyer or both the seller and buyer.

Listing Agent or Seller's Agent - This is the agent who has listed the house for sale.

Buyer's Agent – The agent that represents the buyer of the property

Dual Agent - This agent represents both the seller and the buyer of the property.

Note: An agent or broker may represent more than one client in the negotiation for a specific property.

Realtor - A state licensed real estate agent that is also a member of the National Association of Realtors (NAR), The California Association of Realtors (CAR),and local real estate board. A Realtor is guided by a Code of Ethics. Not all agents are Realtors.

This information is not intended to define any legal terms. Any questions of the legal nature should be referred to a legal professional.