Glossary

SALES COMPARISON APPROACH: An appraisal practice used by both real estate agents and appraisers which estimates the value of a property by comparing it to comparable properties which have sold recently.

SCARCITY: An economic principal that dictates the price of a good or service through the interaction of supply and demand. When an item is scarce, its price tends to rise, given a constant demand. Real Estate is a classic example of scarcity.

SECOND MORTGAGE: This is a loan secured by the equity in a home, when a primary mortgage already exists and is recorded in secondary position.

SECONDARY MORTGAGE MARKET: This is an economic marketplace where mortgage bankers buy and sell existing mortgages.

SECURED LOAN: Clearly defined, this is a loan which is backed by collateral. In the case of a mortgage loan, the collateral is the house.

SECURITY: This is a piece of property used as collateral for a loan.

SEMIDETACHED HOUSING:   The definition of two residences which share a common wall.

SERVICER: This is a financial institution which collects mortgage payments from borrowers and applies the appropriate portions to principal, interest and any escrow accounts.

SERVICING: Typically, this service is carried out by the company you make payments to. The processing includes payments, mailing of monthly statements, management and disbursement of escrow funds, etc.

SHEATHING: The covering on outside walls beneath the siding or exterior finish such as stucco on property.

SHEETROCK: Also called drywall, the gypsum board which is commonly used on interior walls.

SILL PLATE: This is the lumber used around the foundation to support exterior wall framing.

SILL COCK: This is a garden hose pipe connection.

SINGLE-FAMILY PROPERTY: This is a property designed and built to support the habitation of one family.

SOFFIT: It is the underside of a cornice at the eaves.

STUCCO:  A Type of textured plaster exterior (and occasionally interior) wall finish.

STUD: This is a vertical framing piece in a wall, generally 2x4 lumber in interior walls.

SUBDIVISION: This is a residential development that is created from a piece of land which has been subdivided into individual lots.

SUBJECT PROPERTY: This is a term used when a property is indicated in a real estate contract and also used for appraisals.

SUMP: This is a basin into which water drains and from which the water is pumped out. Sump Pumps are what are generally used to accomplish this task.

SURVEY: A specific map performed by a Surveyor on a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements.

SWEAT EQUITY: This is a method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built.