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Real Estate and Auction Terms Explained
Real Estate and Auction Terms Explained
Account Verification
Account verification is required to participate in Xome auction events. In order to properly safeguard your information, we require account verification prior to participation in auction activities. Account verification also allows our auctioneers to assist with pre-, live, and post-auction related activities. Account verification ensures that only authentic bidders are registering for Xome auction accounts.
Active
Properties on Xome.com that are being sold in an active auction. This is one of the five auction status types assigned to each of the properties listed on our website.
Agent
A person who represents buyers or sellers of real estate. Agents work with their clients throughout the process of buying or selling a home, often providing invaluable knowledge and advice along the way.
Auction
A sale in which properties are bid on and are sold to the winning bidder. Auctions are an innovative and efficient method of selling real estate and can be conducted both in-person and online.
Auction Calendar
Xome's calendar of upcoming bank owned, short sale, foreclosed, recently foreclosed and non-bank owned real estate auction events. It's a breeze to peruse upcoming events, find details about each property, and register to participate in an auction event. Easily export spreadsheets with just the inventory you're interested in.
Auction Dashboard
Your Auction Dashboard is accessible once logged in to your Xome.com account and includes all the information about your activity in one spot! It's easy to see everything at-a-glance like your pre-auction offers, events you've registered for, and your most recent bids.
Auction Ended
The time period for bidding on a property in the current auction event has come to an end. This is one of the five auction status types assigned to each of the properties listed on our website. Details about properties under this status type can still be viewed on the website.
Average Rental Price
The average estimated monthly rental price of a property. This is calculated based on similar properties and does not include consideration for the property's specific condition or renovations.
Average Rental Trend
The change percentage in the estimated average monthly rental price over the past twelve months. This is calculated based on similar properties and does not include consideration for the property's specific condition or renovations.
Authorized Seller Signer
A person who is eligible to sign contracts for selling the property.
Asset Upload
The process of supplying all property information to Xome so you can access properties in your Auction Seller Portal and list them in a Xome auction.
Auction Seller Portal
Where individual sellers (i.e., non-institutional) upload and manage auction properties for sale on Xome, as well as view their past activity.
Bank Owned
Properties owned by a lending institution and typically sold through bank-owned or Xome auctions (also referred to as Real Estate Owned or REO). These properties have gone through the foreclosure process, failed to find a buyer during an auction event, and are then re-valued at the amount it would cost to cover the loan. They are sold by a real estate agent and often through an auction. These kinds of properties are often sold "as is" at a discounted price, which is great for buyers like you. The lending institution wants a hassle-free process and is motivated to make a quick, seamless sale.
Bid
The amount you offer for a property, in competition with others at an auction event. Bidding can be done online or at a live auction. If you meet the seller's minimum price and you have the highest bid, you typically win the auction.
Bid Increment
The minimum amount a bid must increase during an auction. Increments are pre-determined based on the current winning bid.
Broker Co-Op
A third-party, independent agent who finds you a property that another agent is listing.
Buyer's Credit
Money back for expenses that you incur during the home buying process.
Buyer's Incentive
Creative ways that a seller makes their home more desirable than their competition, like offering you credit at closing for relocation or to apply to closing costs. Be sure to check out our special sales events like Cyber Monday when these kinds of incentives are typically offered!
Buyer's Premium
Properties sold in certain online auctions require a "Buyer's Premium." The fee is typically 5% of the winning bid or $2,500-whichever is greater. This fee is only required if you are the winning bidder.
Cashflow Asset
A property that produces income for its owner like an apartment complex, single-family rental, duplex, or commercial building. Over time, the asset may increase in value through appreciation in the market or with repairs and upgrades made to the property.
Cash Only
Properties that only allow all-cash offers. Usually, if a property is listed as "cash only," it means that it is not in a condition to be financed under a conventional mortgage loan.
Checkout Form
The form filled out by the high bidder of a property during an auction event. The form includes specifics about the property including the purchase price, credit card details, and the buyer's contact information, among other things.
Clear Title
A title to a property that is free from liens, debts, or other issues. This type of title, also called a "clean title," "just title," or a "free and clear title," clearly establishes the legal owner and doesn't allow for any other party to make a legal claim to its ownership.
Closing
The final steps in a transaction after winning a property at auction - AKA you're close to the finish line!. - This process typically takes 15 business days for cash deals and 30 business days for financed deals and includes things like negotiating closing costs, signing the contract, and getting title insurance.
Closing Process
Congratulations! You've made it to the final steps in a successful property purchase. A standard closing for a cash deal is 15 business days, and 30 business days for financed deals. The process includes signing paperwork, setting a closing date, and transferring ownership from the seller to you.
Coming Soon
Properties on Xome.com that have not yet been scheduled in an auction event. This is one of the five auction status types assigned to each of the properties listed on our website. Be sure to "favorite" the property to ensure you get the latest updates on when it is scheduled in to an auction event.
Commercial
Properties that include office buildings, hotels, stores, apartment buildings, industrial spaces, and more. Commercial real estate is usually intended to generate profit, either from rental income or capital gains.
Condo
A residential building in which each unit is owned by an individual. Owners are responsible for their individual units, including maintenance and repairs.
Confidence Score
A score that represents the predictive value of the Xome Value® estimate. Higher confidence scores suggest greater probable accuracy for Xome's estimate of the property's market value, while lower scores suggest the opposite.
Credit Card Hold
A hold, or temporary deposit, placed on a credit or debit card in order to register for an online auction event. If you are not the winning bidder, the hold will be removed within 24 hours after the event ends. If you are the winning bidder, the hold will be removed within 24 hours of the escrow/closing company's receipt of your earnest money deposit. If you verify your identity, you don't have to worry about a credit card hold - nice, right?
CWCOT
The Claims Without Conveyance of Title (CWCOT), also referred to as 2nd Chance Foreclosure, program gives buyers a chance to purchase HUD-backed, cash-only foreclosure properties off market. These cash-only properties usually close quickly and are offered below the appraised value. While they can be a great deal, they are sold in 'as is' condition without warranties.
Due Diligence
We highly recommend doing your research before bidding on a property. This very important step may include looking up the estimated value, reviewing title reports, estimating any repair costs, and visiting the property and surrounding neighborhood (when possible).
Duplex
A residential building with two separate units. Each unit is designed for one household with a separate entrance.
Earnest Money Deposit
A deposit you make that lets the seller know that you are serious about buying the property. This deposit will be applied to the purchase of the property upon closing. The amount of deposit will vary by asset type and must be submitted within 48 hours of executing your purchase agreement.
Estimated Opening Bid
The approximate starting bid for an available property in an auction event.
Financing Available
Properties that allow you to pay for them over time, if you can get approved for a mortgage loan. The details of the mortgage are worked out between you and the lending institution.
Foreclosure Homes
A neutral third party who handles the foreclosure process in a non-judicial foreclosure. Depending on state law, a trustee might be an individual, like an attorney, or a business entity, like a bank or a title company. Often the lender chooses the trustee, who is usually affiliated with the lending institution.
Fourplex
A residential building with four separate units. Each unit is designed for one household with a separate entrance.
First Look Programs
First Look programs provide eligible buyers, typically owner-occupants, with exclusive early access to bid on select bank-owned (REO) properties. During a designated period, these buyers can submit offers before the properties are made available to all buyers. The goal of First Look programs is to encourage the purchase of REO homes as primary residences. In California, a specific First Look program is available for certain REO properties within the state. Eligible buyers include California-based owner-occupants, nonprofits, government entities, community land trusts, limited equity housing cooperatives, and the Regents of the University of California.
Home Buyer
A person who purchases a property to use as a primary residence. Often home buyers are looking for more space or a better location, a way to build their own equity, or a new place to start a family.
HUD
A mortgage loan funded by a lending institution that is insured by the US Department of Housing and Urban Development (HUD).
HUD-approved Nonprofit
A legal entity organized and operated for a collective, public, or social benefit as opposed to making a profit, having a minimum two years of relevant housing experience within the last five years, and appears on the list of HUD-approved Nonprofits.
Interior Access Available
The ability to see the inside of a property before bidding on it. Usually, this means that you can view photos of the property's interior on the Xome website before an auction event. A very helpful opportunity to learn more about the condition of the property you are about to bid on!
Investor
A person who purchases property as an investment to generate income rather than using it as a primary residence or business. Investors are usually focused on making the most profit from a property, whether it's benefitting from the numerous tax breaks and deductions or renovating a property to increase the monthly rental rate.
Land
Property or real estate, not including buildings or equipment. This refers to lots of land that are sold at an auction event.
Lending Partner
An outside company Xome partners with to provide special rates and financing options to our customers.
Log In
The process of typing the user name and password into the log in screen on Xome.com to access your account.
Log Out
The process of logging off your Xome.com account. It's a good habit to log out of your account after each use.
Manufactured Home
A home largely assembled in a factory and then transported to a site for use.
Mobile Home
A home built in a factory on a permanently attached chassis that is then transported to a site for use.
Mortgage
A loan typically used to buy or refinance a home or other piece of real estate. The property purchased is used as collateral against the loan.
Multi Family
A residential building with multiple separate housing units contained in one building or several buildings in one complex, like an apartment building. Units can be next to each other or stacked on top of each other.
No Buyer's Premium
Properties sold in certain online auctions that don't require the winning bidder to pay a premium (typically 5% of the winning bid or $2,500, whichever is greater). Note that buyer's premiums are a widely accepted pricing mechanism in real estate auctions. This can be a nice little savings to you! You can filter properties in your search to see those that don't have Buyer's Premiums.
Non-bank Owned
Properties available for purchase at an auction that are not owned by a bank or lender. The bank or lender has not assumed ownership, and is looking for a buyer, someone like you, to pay the balance of the loan.
Notifications
Message alerts that include important information about properties you are bidding on, events you are registered for, and the like. Stay in the know once your bidding begins and be alerted if you were outbid, won the auction, and more.
Occupied
A residential property where a person (e.g., former owner, or tenant) lives or maintains actual possession. Depending on your buying strategy, an existing tenant can mean quick income generation for investors. Get acquainted with local laws to ensure an occupied property is right for you.
Online Auction
An auction where bidding is conducted in an online event. These events are live, but they run a little differently than in-person events. For example, the registration processes and length of the events varies. Plus, you get to bid from the comfort of your own home or wherever you like.
Own it Now
End bidding immediately, or purchase a property before the auction event begins, by confirming your offer in the amount of the seller's approved Own It Now price. The Own It Now option is offered at a seller's discretion and will be listed on the individual property's page, if available. A great option for anyone looking to beat the competition and skip the auction process!
Pending Sale
A property whose seller has accepted an offer from a buyer, but the deal has not yet closed. The property is placed in pending status once the contract is executed and is considered sold only after the deal is finalized. This is one of the five auction status types assigned to each of the properties listed on our website. Details about properties under this status type can still be viewed on the website.
Pre-Auction Offer
An offer made by a buyer in advance of the auction event start date. Pre-auction offers are no longer accepted within 48 hours of the start of an event. If the seller accepts the offer, the property is removed from the auction event when the purchase agreement is signed by all parties. Pre-auction offers can be a great way to reduce competition on a property you are interested in purchasing.
Purchase Agreement
A legally binding document that governs the purchase and sale of a property between you and a seller. It defines the terms of the transaction and the conditions under which a sale will be made.
Redemption Auction
An auction event where you bid on properties that are subject to the right of the former owner to redeem the property. This type of auction event is conducted during a state's redemption period. We strongly encourage you to investigate the applicable laws governing the right of redemption for the state the property is located in.
Reduced Reserve
A reduction in the lowest price a seller is willing to accept for a property. Note that a seller is not typically required to share this price with potential buyers.
Real Estate Owned (REO)
Also known as bank owned. A property owned by a lending institution that has not been successfully sold at a foreclosure auction (live in-person auction event). The property is re-valued at the amount it would cost to cover the loan and is sold by a real estate agent or through an auction. These kinds of properties are often sold "as is" at a discounted price, which is great for buyers like you. The lending institution wants a hassle-free process and is motivated to make a quick, seamless sale.
Reported Vacant
Properties that have been recently inspected and are thought to be vacant. Note that this is not a guarantee that the property will be vacant when the buyer assumes possession. It's best with these types of properties to see the inside of the property before bidding on it, if possible.
Reserve Price
The minimum price the seller is willing to accept for a property in an auction. Note that a seller is not typically required to share this price with potential buyers.
Residential
Properties containing one-to-four family dwelling units that include single-family homes, condominiums, multiplexes, townhouses, and more. Due to local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes.
Right of Redemption
The ability for a homeowner to stop a foreclosure sale from taking place by paying off the mortgage debt, or repurchase their property after it has been sold at auction. Most states have some type of redemption option and we encourage you to investigate the applicable laws associated with the property you are looking to bid on.
Rental Valuation Estimate
Our estimation of the average monthly rental price for a property. This is calculated based on the rental price of similar properties and does not include consideration for the property's specific condition or renovations.
Single Family
A residential building designed for one household or family.
Short Sale
A property being sold at a price lower than what the seller owes on the mortgage. The lender reviews and approves the purchase offers. This usually occurs when the seller is under financial distress and is unable to continue paying the mortgage loan. In this case, the seller is obligated to sell the property to a third party and use the profits to pay the lender. Short sales can often take up to a year to process because of the amount of paperwork involved.
Sold
Going once, going twice, SOLD! A property whose seller has accepted your offer, all contingencies have been removed, a contract has been signed, and the title has been transferred from the seller to you. This is one of the five auction status types assigned to each of the properties listed on our website.
Specialty Financing
Specialty financing provides investors options to obtain non-conventional loans. These are typically short-term loans with higher cash-out amounts. Options for this type of financing are: hard money, bridge, fix and flip, and rental.
Starting Bid
The opening bid price for an available property at an auction.
Seller Onboarding
The process all sellers must go through before they can list their properties in a Xome auction.
Title Search
A check for any debts or liens that may give a third party legal financial claim to a property. We encourage you to conduct an online title search before deciding to bid on or sell a property.
Townhouse
A residential building designed with multi-floor units that share one or two walls with adjacent properties but have their own entrances. Each unit is owned by an individual who is responsible for the maintenance and repairs.
Traditional Financing
Traditional financing includes both conventional loans through private lenders, such as banks, credit unions and mortgage companies, as well as loans secured or offered by a governmental agency. Options for this type of financing are: fixed-rate, adjustable-rate, conforming (FHFA), non-conforming, and government-issued (FHA, USDA, VA).
Triplex
A residential building with three separate units. Each unit is designed for one household with a separate entrance.
Vacant
Properties owned by a bank that have been recently inspected and confirmed to be vacant. These properties have gone through an inclusive inspection process that includes eviction, rekeying doors, and otherwise securing the property. Properties listed as "vacant" can be assumed to have gone through this rigorous process.
Vacancy Rate
The vacancy percentage for the location of a property based on the number of available rental properties in the area over the past 12 months. This is calculated based on similar properties and does not include consideration for the property's specific condition or renovations.
Xome Value®
The Xome Value®, shown on all listings in the Xome® real estate marketplace, is powered by Xome’s proprietary automated valuation model (XVM). It provides a data-driven estimate of a property’s value by analyzing key factors such as property characteristics, local market trends, and recent sales. While useful for research and investment planning, the Xome Value® is not a guarantee of a property’s actual market value. See our disclaimers for further information.
Xome.com
Our website that includes auction properties, traditional MLS listings, mortgage information, business solutions, professional guidance, and much more.
Xome.com Account
Your account on the Xome.com website. Log in to access your Auction Dashboard, see all your saved searches, favorites, profile information, and more.