Real Estate Terms Explained

Buying or selling a home comes with a lot of lingo. Here's a quick guide to help you understand some key real estate terms that you might hear throughout the process:

Appraisal – A professional opinion of your home’s value, usually required by the lender before finalizing a mortgage.

Closing Costs – Fees paid at the end of a real estate transaction (think: loan fees, title insurance, etc.).

Contingency – A condition that must be met for the deal to move forward (like a buyer needing to sell their current home first).

Escrow – A neutral third party holds funds and documents during the transaction until everything is finalized.

Equity – The difference between what your home is worth and what you owe on your mortgage.

Earnest Money – A deposit from the buyer that shows they’re serious. It goes toward the purchase price if the deal goes through.

Inspection – A check-up on the home’s condition to catch potential issues before closing.

Listing – A home that’s officially for sale and being marketed by an agent.

MLS (Multiple Listing Service) – A private database where agents share listings so buyers can find them.

Pre-Approval – When a lender checks your finances and says you’re approved to borrow a certain amount.

Title – A legal document proving who owns the property.

Title Insurance – Protects buyers and lenders if any issues come up with the property’s ownership history.

Under Contract – When a buyer and seller have agreed on terms, but the sale isn’t finalized yet.

Closing – The final step when paperwork is signed, money is transferred, and ownership officially changes.

Zoning – Local laws that dictate how land and buildings can be used (residential, commercial, agricultural, etc.).

Real estate doesn’t have to be confusing! I’m here to guide you through every term, step, and signature. Have questions? Just reply to this email or reach out anytime!