Real Estate Terminology

The real estate world is full of terminology. We are here to help you learn some lingo that can get you one step closer to buying or selling your home. 🏠

Home Inspection

An examination of the property intended to check and evaluate the overall condition of a home. An inspection is important because it helps the buyers to determine if a home may need costly repairs.

Mortgage

A type of loan you can use to purchase or refinance a home. As a borrower, your monthly payments will go towards paying off the mortgage balance and interest on the loan.

Appraisal

A home appraisal is an unbiased, professional estimate of the value of a home and is used whenever a mortgage is involved in the buying, refinancing, or selling of the property.

Down Payment

A percentage of your home’s purchase price that is paid upfront when you close your home loan, and is apart of the mortgage.

CMA

A competitive market analysis (or CMA) is a tool used to estimate the value of your home by looking at recently sold, similar properties in your area. Your real estate agent will be able to put together a CMA report to help you set your listing price correctly and competitively!

FSBO

For sale by owner (or FSBO) homes are listed by the owner without using a real estate agent.

TITLE

A title is a document that provides current legal ownership of real estate or property. This is shown by a deed recorded in the county land records office.

EARNEST MONEY

A deposit made to a seller representing a buyers good faith to buy a home. This shows the sellers you’re serious about purchasing.

CONTINGENCY

When a listing appears to be “contingent”, this means that the sellers have accepted an offer, but there are certain conditions that need to be met (by either the buyer or seller) in order to continue the next step in the contract.

CLOSING DAY

When the new title to the property is signed over and the ownership of the home is transferred to the buyers.