The Ultimate Real Estate Glossary: Letter M
The real estate industry can be a daunting prospect if you’re new to it as a tenant or property manager. That’s why we’re bringing you the next installment in the Ultimate Real Estate Glossary series.
Real estate terminology is almost a whole different language at times, so our guide covers words and concepts that you need to know. This isn’t exhaustive, there are more words out there, but you’ll encounter these a lot. Having the glossary handy can keep things clear when you want to discuss matters with your broker, your tenants, or your landlord.
For this edition, we’ll go through the real estate terms that start with the letter M.
Real estate terms: The letter M
Managing broker: A broker who handles the everyday management of a real estate firm, working under a designated broker. Managing brokers are licensed to have agents working under them, who handles most of the brokerage’s business. They ensure that the brokerage’s agents are properly licensed and trained, and monitor their performance, behavior, and legal compliance. Managing brokers also provide services and marketing for their agents.
See also: broker, designated broker
Market familiarization trip: A visit by a prospective buyer to a new location to examine the housing market and neighborhood highlights.
Marketing period: The period between property listing and closing of the sale, where advertising efforts are carried out. The average marketing period can vary from place to place, depending on how busy the real estate market is in that particular area.
Mortgage: A type of loan used to finance a house purchase. A mortgage is a secured loan that is specifically tied to a house or property, lasting for 15 to 30 years at a time. The property serves as collateral for the loan, giving the lender a claim on the property. Should the borrower fail to meet a repayment, the lender can claim the property. This is a process called foreclosure.
See also: loan
Contrast to: deed of trust
Mortgage banker: An employee of the loan department of a financial institution like a bank or credit union. They work with prospective borrowers through the mortgage process, then originate a mortgage through their institution. They evaluate a borrower’s capacity to pay back the mortgage and guide borrowers through the options available to them.
Mortgage broker: A third party that matches borrowers with lenders. Mortgage brokers are unaffiliated with a financial institution. They look for lenders who can best fit the borrower’s needs. They also handle paperwork between the lender and borrower. They do not originate any loans but instead take a commission at closing from either the lender, the borrower, or both.
Mortgage loan servicing company: A third party that handles the administration of a loan after it has been originated. A loan may be sold to a mortgage loan servicing company, but as far as the borrower is concerned, all that they need to do is change what address they send their loan payments to.
Multiple listing service (MLS): A database created by brokers in a given area that compiles their real estate listings. This allows agents and buyers to browse available properties.
See also: Listing
Multiple offers: A situation where multiple buyers offer to purchase the same property. The seller has the option of examining the offers available to them. The seller is more likely to get a price closer to their asking price in a multiple offer situation since many buyers are competing. Agents will advise a prospective buyer should the seller disclose that a multiple offer situation exists, and guide them accordingly.
Conclusion
Mortgages and listings make the world of real estate go round, so it’s important to know what they are and how they should be managed. Don’t forget to check back on this blog for the next installment of the Ultimate Real Estate Glossary, because there’s more coming.
We’d like to hear from you! Tell us what you think about the Glossary, or about any words we may have missed.
Image courtesy of Mark Cruzat