The Ultimate Real Estate Glossary: Letter Gs
Welcome back to the Ultimate Real Estate Glossary!
Newcomers to real estate might find it a bit difficult to absorb all the language that goes with the industry. It can be overwhelming, but that’s why we’ve written this guide for you. It’s a comprehensive dictionary of real estate trade terms for new landlords to get to grips with the industry jargon.
You’ll be walking and talking like an experienced property manager in no time! If you’re a tenant, we also recommend reading our guide so that you can better understand the terms used by your landlord, property manager, and lease agreement.
For this edition, we’ll go through the real estate terms that start with the letter G.
Real estate terms: The letter G
Gift letter: A letter stating that an amount of money received from a friend or relative as a gift, and the giver does not expect the money to be repaid. This usually comes up when a borrower gets money from a friend or family member as a gift when making a down payment on a new property.
Good faith estimate (GFE): The form a lender gives a borrower when applying for a reverse mortgage, required under the Real Estate Settlement Procedures Act (RESPA). It details the estimated costs and terms of the mortgage loan, thus letting the borrower compare offers among lenders to find a good one.
A lender must provide the GFE within three business days of receiving a loan application. Borrowers cannot be charged any further fees (except a credit report fee) until after receiving their GFE and indicating they wish to proceed.
Gross commission income (GCI): The total revenue from commissions that a brokerage or agent receives. This is before any relevant expenses for both brokerages or agents are deducted.
This is just one of the possible forms of compensation an agent gets for selling a property. In some brokerages, the amount of GCI an agent brings in may function as a performance metric, and good GCIs could mean their employer will provide them with better benefits.
Gross sale price: The amount a seller makes from the sale of a property, before closing costs or concessions. Posted simply as ‘sale price’ when a property is listed on the MLS.
Guaranteed Buyout Offer (GBO): A form of house sale usually found when an employee moves for work. The house to be sold undergoes two appraisals. The average value of both appraisals becomes the sale price.
The relocation company purchases the house from the employee at the given sale price and adds the house to their inventory. The employee can then relocate without further needing to worry about the house.
Contrast with: Amended Value Sale (AVO), Buyer Value Sale (BVO)
Conclusion
Don’t worry if it seems like it’s taking forever to learn all these new terms. These things always take time. The real estate glossary will guide you when you need it, so take as much time as you need.
Check back on our site for the other letters, whether you want to see the next installment or consult previous ones. We’ll continue updating this glossary until we reach the letter Z.
Any other terms you want to understand? Just comment below, and we’ll make sure to touch on them!
Image Courtesy of Alex Green