REAL ESTATE DICTIONARY… A

Accessory Dwelling Unit (ADU) – is a secondary housing unit on a single-family residential lot.

Active Listing – this means that the property is currently on the market and available for sale. It may have received offers, but none have yet been accepted.

Adjustable Rate Mortgage (ARM) – An adjustable rate Mortgage (ARM) offers lower initial rates and may be an excellent choice during times of high interest rates, rising income expectations or short-term home ownership. Most importantly, with a fixed-rate mortgage, the interest rate stays the same during the life of the Loan.

Addendum – is an additional document that gets added to the purchase and sale agreement. The document will include any additional information or requests that the buyer/seller did not put into the original purchase and sale agreement. The language in the addendum has the ability to override the original terms of the agreement.

Agreement – See Purchase and Sale Agreement (PSA)
Amortization – a payment plan which enables the borrower to reduce his debt gradually through monthly payments of principal. Most residential loans are amortized over a 15/30-year period.

Annual Percentage Rate (APR) – is expressed as a percentage that represents the actual yearly costs of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Appraisal – A home appraisal is an unbiased estimate of the true (or fair market) value of what a home is worth. All lenders order an appraisal during the mortgage loan process so that there is an objective way to assess the home’s market value and ensure that the amount of money requested by the borrower is appropriate.
Also see Low Appraisal

As-Is – selling home As-is technically, when a real estate agent lists a house to sell as is, it means the homeowner is selling the home in its current condition, and will make no repairs or improvements before the sale

Asbestos – is the name given to a group of naturally occurring minerals that are resistant to heat and corrosion, composed of thin fibers. When residential construction products made with asbestos are damaged, those fibers become airborne and could pose a danger to anyone who inhales the toxic dust. After years of exposure to those fibers, people may develop a cancer known as mesothelioma, which forms tumors on the lining of the lungs, abdomen or heart. Most asbestos-related diseases are diagnosed at least 15 years after exposure. More info a t Asbestos.com

Assessed Value – An assessed value is the dollar value assigned to a property to measure applicable taxes. Assessed valuation determines the value of a residence for tax purposes and takes comparable home sales and inspections into consideration.

Authentisign – is an impressive electronic signing tool that is accepted by FHA and complies with the laws laid down by ESIGN. We use Authentisign to sign all real estate transaction documents.