Remember the good ol’ days, when you could look for a new home and actually understand the ad? You know the ad I’m talking about… 3/2 hm- qt. st, gd nbrhd?
It almost seems as if those days are gone. And good luck reading the new style ads. That is, unless you’re in the “biz.” Here’s a sample of the latest “buzz” word stuffed, acronym popping mainstream real estate ad.
As-is where-is, NSP buyers only for this REO HUD house, EMD proof required, RPA-CA submitted OAC verified by Suzie Smith. Occupancy at COE, OOA Seller, allow 3 days for response.
Doesn’t this Realtor speak just give you the warm fuzzies when you’re looking to buy that new home? Personally, it sounds bossy to me and reminds me of the first day at boot camp!
Take it or leave it, the acronyms once used only between real estate agents have now gone mainstream. At least once a day I’m asked, “what does” REO” or “NSP” mean.”
In this post, I’ll get you some quick answers so you can get back to finding that perfect house on a quiet tree lined street.
As-is where-is. I’m a real estate broker and I’m still not sure about this one. The “as-is” part scares most people as the assumption is “there’s something wrong” with the house. Well there could be something wrong or maybe not. Usually, the as-is statement is used when advertising bank owned properties. And since the bank never actually lived in the house, no disclosures can be provided. So what you’re being told is: Check out the house from top to bottom as no repairs will be made by the seller/bank, consider this a cash and carry deal, buyer beware. Now, for the “where-is” part. I have no idea what that means. I suppose if you were buying a mobile home or trailer you would take the property where it is currently sitting now because we all know the delivery driver is very slow, grumpy at times and always expects a big tip. By the way, most of the California Residential Purchase Agreements have the “as-is” clause already built-in and would apply to all residential homes being sold by Realtors.
NSP – Now here’s a fine one. For a long time I thought it stood for No Showings Please; there could always be a day sleeper I suppose. Well, that’s not what it stands for. NSP is Realtor speak for Neighborhood Stabilization Program.
REO – Real Estate Owned. When a lender or bank forecloses on a property they now own the property. The inventory of “owned” property is referred to as Real Estate Owned. Are REO properties good deals?
HUD – U.S. Department of Housing and Urban Development. Check out the HUD website, you’ll discover a great resource of information.
EMD – This has nothing to do with doctors or emergency medical people. EMD stands for Earnest Money Deposit.
RPA-CA – Residential Purchase Agreement used in CA by REALTORS. The advantage of the standard form agreement is; appraisers and escrow officers are all familiar with this contract. The RPA-CA has nothing to do with physical or annoying pain caused by others.
OAC – This one makes me think of car sales. Drive off today with no down payment On Approved Credit. Always bring a gift for the person doing the approving.
COE – Close of Escrow; this happens every now and then. I’ve been told the experience can be similar to child birth.
OOA – Out of Area. Realtors use this often when referring to a Seller that resides out of the area. It’s a “heads-up” to agents that the exchange of paperwork may take longer since the Seller is not local. Sometimes agents have been known to take a day off and blame any delays on the OOA Seller or even Fedex for that matter.
EIEIO – Foreclosure reference as in “Old Mac Donald Had a Farm” and now he doesn’t (just kidding on this one.)
If you can think of any other good ones drop me a note and I’ll append this post. In the mean time, I promise not to use acronyms or smiley faces.
c ya – William Parsons, Broker of Parsons Realty