Important Lingo in an Alaska MLS Real Estate Listing

Posted by Dan Wolf on Monday, March 10th, 2014 at 9:27am.

When looking to buying a home, it is important to take the time to understand the lingo in an Alaska MLS real estate listing. As Important Lingo in an Alaska MLS Real Estate Listingfirst time buyers, you will find yourself not understanding certain terms and information included in an Alaska MLS. This is perfectly common but by doing your homework and getting a better understanding of these terms, you will not be out of the loop as much. The more you know about a particular listing and the property it covers, the better off you are going to be.

Important Lingo in an Alaska MLS Real Estate Listing

#1 Adjustable Rate Mortgage (ARM) is a specific loan that is going to have a variable interest rate, depending on the adjustment period. The adjustment period then depends on a set benchmark index, which is usually a prime rate. The loan type also is known as a variable rate mortgage. This means that after the mortgage is signed, the interest rate per month can change rather drastically meaning an individual can pay a certain amount one month but can end up paying another amount the next month.

#2 Adjusted Sales Price is the adjusted price of the home as listed on the contract, not including all of the credit concessions offered by the selling of the home.

#3 Air Rights are commonly used in metropolitan areas, although it is also used in subdivisions as well. Air rights control the space above a property. When purchasing Alaska property, you are given the opportunity to not only purchase the rights to the property but also the air rights meaning you as an owner have the ability to add on top of the current structure.

#4 Amenities are the different features listed, typically in a condo or townhouse grouping that is used to improve the overall quality of the building. This ranges anywhere from a garage to a health club, spa, common lounge or other features that go above what is available just in the purchased property itself.

#5 Annual Percentage Rate (APR) is the rate of interest you are charged on the loan. APR is written in a yearly format in order to represent the amount of money you have paid directed specifically towards paying back the loan against the amount that went towards the premium left on the house.

#6 Appraisal: While the house might be listed at one price, the appraisal is used to point towards the actual value of the house. An appraisal can only come from a licensed professional. Typically, real estate agents will bring in several individuals from different firms to appraise the house. Once the house is appraised, the listing will then take the average of the appraisals to come up with the actual listing price.

#7 Capital Improvements are renovations or items that add value to the property. There are different elements that can be installed into a property that might be considered as a capital improvement. Capital improvements range from adding a fireplace to installing a new water heater. All of these elements can be installed into the house in order to drive up the value of the house and make it more desirable to possible homebuyers.

#8 Capitalization Rate is directly related to capital improvement, although the rate showcases the amount of money you are likely to earn back with the investment. This means, if you spend an additional $1,000 on the house in capital improvements and are able to increase the value of the home by $900, you were able to obtain a rate of 90 percent. There are times when the value of the home can actually increase over 100 percent of the amount of money spent on the upgrade. It really just depends on the actual upgrade itself.

#9 Cash Flow is income that is produced by a set property, after all of the debts and operating expenses are subtracted from the total amount of money that comes in. This is usually related to rental facilities, although if you are looking to rent out areas of your house than it is possible to consider the cash flow of your home as well.

#10 Good Faith Estimate comes from a mortgage borrower on the amount of fees that is usually going to be required for payment when paying the closing costs. This is required by the U.S. government in order to provide a general estimate that is close to what the actual costs are going to be, regardless of the home or the available agent.

These are just a few key terms in understanding an Alaska MLS real estate listing. Contact us today or use our reliable, reputable and safe website to search for a home now.

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