Since almost everything about the Orange County real estate market has changed over the last few years, though, so we thought it was time to provide you with an updated real estate lingo decoder that accounts for those changes in the market. We are sure you've heard of 'needs tlc' ( meaning it's in pretty bad shape), cozy ( small) , original details ( have NEVER been renovated), but also the famous ' pride of ownership', 'sought after' and 'priced to sell', like if a house wasn't listed with the intention of selling it.
Some of the terms used on the listings and their abbreviation may be confusing, so here's a little explanation to the top 5 we thought were important.
1. REO: Its short for Real Estate Owned. Sometimes people confuse the foreclosure ( which is the process of having the bank repossess the home), with Bank Owned, which is when the Bank already has ownership of the home. REO's are also known as 'repos' and usually when someone is looking for an 'Orange County foreclosure' what they really mean is that they want a bank owned home.
2. Short sale, subject to bank approval: a short sale is a transaction where the seller will net less than what's owed to the bank. In this type of sales, the seller has no decision power over the sale overall, and it's at the Bank's mercy as to get it approved. Short sales can take months and experienced agents are key to success.
3.Pre-approved short sale: some listing agents designate a short sale as “pre-approved” when a previous short sale application was approved at a given price, but fell out of escrow, and have a pretty good idea of what the bank terms will be. These tend to be faster transactions because some of the paper work between the seller and the bank has already been done.
4.FHA approved : Short for the Federal Housing Administration, which backs the popular 3.5 percent down home loan program. FHA
guidelines can be strict, and some homes have conditions or home owners associations that won't be FHA approved. If you are in the market for an Orange County home with this type of loan, our agents will be able to tell you if the homes you like fall or not into this category.
5. Standard sale: Not a short sale, not a foreclosure. Sellers selling their home the 'regular' way, are often more negotiable on terms as price, repairs, close date and pride themselves on having maintained the homes in better shape than the distressed ones on the market.
In Orange County we've seen that these type of sales often appeal more to the buyers who need a home to move into fast and won't necessarily will pay a premium for it.
We hope you are having a great time looking at all the Orange County listings of homes for sale, and if you have any questions or need more information on any of them, let us know.