Maximizing Your Investment: How to Flip Houses Successfully

June 07, 2022

Below is a list of commonly used abbreviations and terminologies by Estate Agents and Property Experts.

7 day notice

Notice period required by the banks before exchange of contracts on a repossessed property.

Best and final

When a property has more than one interested party, and negotiations are going back and forth with both parties increasing, a situation may occur where sealed bids are offered. “Best and final” is the agents’ term for
this.

BMV

Below market value (don’t use this! They may not know what it means)

Broker

Mortgage broker who offers finance

Deposit

Amount of deposit you have to put down against the purchase price minus the mortgage

DIP, AIP

Decision In Principle and Agreement In Principle (for a mortgage)

Downval

A valuation that was lower than needed for the mortgage application

Freehold

You own the land that the property sits on

Freeholder

The person who owns the land that the property lists on

FTB Property

First time buyer – Gazumping – to be out-bid on the property you are buying by another buyer

Gazundering

To have an offer reduced at the eleventh hour

Guide Price

This is to give an estimate of price but offers could be under or over this

HMO

House of multiple occupancy, also known as multi-let

Leasehold

A property where the land it stands on is owned by someone else (such as a flat)

Lister or Valuer

The agent who values the properties before they get put on the market

Lease option

LTV

Loan to Value – the amount of loan that is loaned by a bank in relation to the property value

Mortgage offer [written term]

Mtg

Mortgage

Neg

Negotiator: the agent who sells the properties

Offers Over

Same as OIEO

OFF MKT

Not on the Open Market

OMV

over market value

OIEO

Offers in Excess of – This means that they want offers in excess of the price advertised

OIRO

Offers in Region Of– This is like a guide price and offers could be over or under this

Part Exchange

A property that is taken in as part payment for a property, usually a new home

Probate

A property sale handled by sols or family members that is being sold due to a death

Peppercorn rent

This relates to a ground rent or service charge of a leasehold property and is usually very little but needs to be in effect for the lease to be active

Reneg

Renegotiate the price (don’t use this one!)

Repo

Repossessed property

Reval

Revaluing (re-instructing a surveyor) after a downval or on a remortage

Sealed Bids

Same as best and final above

Shared Ownership

A percentage of the property is retained by the builder or a housing association and rent is paid for this share, theoretically less than the other % mtg

Sols

(written down only) – solicitor

STPP

Subject to planning permission- A property may be sold advertising that you ‘could’ extend, STPP would be the disclaimer the agent would put after in case PP isn’t offered

STS

Subject to survey (usually with Land) – This would be a estimation of land size with a property

STS

Subject to sale- The property has been offered on by someone who has got a property to sell (therefore it is subject to the sale of another property)

SSTC (Sold STC)

Sold Subject to contract- This is the same as under offer and means that the vendor has opted to not have any more viewings

Tied-up

The offer on the property has been accepted by the vendor (more of an informal term)

Under Offer

There has been an offer on the property but that hasn’t necessarily been tied up yet (it is still in negotiation)

Vendor

The seller of a property