Comparative Sales: Sales that have similar characteristics as the subject property and are used for analysis in the appraisal process.

When doing a CMA (comparative market analysis) for a homeowner considering selling their home, real estate agents look at recently sold homes in the neighborhood. So as to make just comparisons, they use homes that are similar in size, location, age, type, etc. For example, a 2-bedroom condo would not be a comparable for a luxury home. This will help the seller to come up with the best price to market their home. Appraisers also use comparable sales data in determining the appraised amount for mortgages or refi’s.

Earnest Money : A deposit made by a purchaser of real estate to evidence good faith.

Earnest money is an amount of money offered with the purchase agreement to show the sellers that you are serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically, in Albuquerque, earnest money can range from $1,000-$1,500 for less than $250,000 and $3,000-$5,000 for up to $500,000. This is always negotiable, but needs to be reasonable for the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing.

Escrow : An agreement between two or more parties providing that certain instruments or property be placed with a third party for safekeeping, pending the fulfillment or performance of a specific act or condition.

Typically, this is seen when a buyer writes a check for earnest money as part of a purchase agreement. In Albuquerque, a title company usually acts as the escrow agent. After the offer is accepted, the check is deposited with the title company. They will then apply the amount of the check as a credit to the buyer at closing. If the contract is terminated, however, the title company will disburse per the instructions in the contract and only with the signatures of all parties involved.

Deed :A written instrument which, when properly executed and delivered, conveys title to real property.

To protect ownership, the deed should be filed with the county. The title company will record the deed when the loan funds.

This piece of paper, which shows new ownership, must have:
• the buyers and sellers names
• the sellers signatures
• a complete legal description.
• been notarized.

For more info, visit Bernalillo County’s Document Search or FAQ’s.

Condominium : A system of ownership of individual units in a multi-unit structure, combined with joint ownership of commonly used property (sidewalks, hallways, stairs, etc.). Condo ownership generally extends to a percentage of the common areas.

HOA (Home Owners Association) fees are charged to the owner, usually monthly, for maintenance costs of the common areas and the exterior building. HOA fees may include utilities. Make sure you are aware of ALL costs included with HOA fees! HOA fees can add up to several hundred dollars a month.