Real Estate Terminology Glossry

Appraisal: An evaluation of a property's value conducted by a licensed appraiser, typically required by lenders before approving a mortgage.

Assessed Value: The value assigned to a property by a public tax assessor for the purpose of determining property taxes.

Buyer’s Agent: A real estate agent who represents the interests of the buyer in a transaction, helping them find and negotiate the purchase of a property.

Closing: The final step in the home selling process where ownership of the property is transferred from the seller to the buyer, involving the signing of legal documents and payment of closing costs.

Closing Costs: Fees and expenses associated with the closing of a real estate transaction, which may include title insurance, appraisal fees, and attorney fees.

Comparative Market Analysis (CMA): A report that compares a property to similar properties in the area to determine its fair market value.

Contingency: A condition that must be met for a real estate contract to become legally binding, such as a home inspection or financing approval.

Contingent Offer: An offer made by a buyer that is dependent on certain conditions being met, such as the sale of their current home or a satisfactory home inspection.

Disclosure Statement: A legal document that outlines any known issues or defects with the property that the seller is required to disclose to potential buyers.Equity: The difference between the market value of a home and the amount still owed on the mortgage. It represents the homeowner's ownership stake in the property.

Escrow: A financial arrangement where a third party holds funds or documents on behalf of the buyer and seller until all conditions of the sale are met.

FSBO (For Sale By Owner): A method of selling a home without the assistance of a real estate agent, where the homeowner manages the entire selling process independently.

Home Inspection: A thorough examination of a property conducted by a professional inspector to assess its condition, identifying any structural or mechanical issues.

MLS (Multiple Listing Service): A database used by real estate agents to share information about properties for sale, which allows for greater exposure to potential buyers.

Offer: A formal proposal made by a buyer to purchase a property, which details the price and terms of the sale.

Pre-Approval: A process where a lender reviews a buyer's financial information and determines how much they are willing to lend before the buyer begins house hunting.

Listing Agreement: A contract between a seller and a real estate agent that outlines the terms and conditions under which the agent will market and sell the property.

Listing Price: The price at which a property is offered for sale, set by the seller based on market analysis and personal goals.

Open House: An event where a property is available for public viewing, allowing potential buyers to tour the home without an appointment.

Purchase Agreement: A legally binding contract between a buyer and seller that outlines the terms of the sale, including price, contingencies, and closing details.

Title: A legal document that establishes ownership of a property and outlines any claims or liens against it.

Under Contract: A status indicating that a seller has accepted an offer from a buyer, and the property is in the process of closing, pending any contingencies.

Walkthrough: A final inspection conducted by the buyer before closing to ensure the property is in the agreed-upon condition and that any requested repairs have been completed.