Briarwood Real Estate Abbreviations for Beginners

Briarwood real estate is awash with industry-specific terms and abbreviations. It’s hard for the average buyer or seller to keep up with the lingo! If you’ve found yourself smiling and nodding as your agent explains the ins and outs of your real estate transaction, this post is for you.

According to our clients, those pesky real estate abbreviations confuse buyers and sellers the most. We took that feedback to heart and compiled this list of five common abbreviations that you might see or hear as you explore the Briarwood real estate market.

  • CMA: Comparative Market AnalysisA comparative market analysis, sometimes referred to as real estate “comps,” is a report that estimates a home’s value based on the recent sale prices of similar homes in the neighborhood. Real estate agents use this tool to assign a fair price to homes for sale.
  • DTI: Debt-To-Income RatioThe debt-to-income ratio is the percentage of your monthly income that goes toward your debts. Lenders look favorably upon low DTI ratios. While all mortgages are different, if you have a DTI of 36%, you’ll be in a decent position to get approved for many loans.
  • FMV: Fair Market ValueThe fair market value is the price that a piece of Briarwood real estate would sell for on the open market, providing that all parties are well-informed about the property and are not being pressured to act on the sale or purchase.
  • PMI: Private Mortgage InsuranceBuyers are generally required to purchase private mortgage insurance if they secure a conventional loan with a down payment of less than 20%. PMI is terminated when your mortgage balance is 78% of the purchase price.
  • HOA: Homeowners’ AssociationA homeowners’ association is an organization that oversees a building or neighborhood. They enforce rules, coordinate repairs and maintain the community. HOAs are common in Briarwood real estate, and residents pay a monthly fee if their building is managed by one.

We hope this guide has helped you understand the native language of Briarwood real estate! Contact Briarwood Realty today to start your real estate journey.

Contact us today at (718) 380-5000 or email us here.