Real Estate Terms Every Buyer and Seller Should Know

Real estate is full of jargon that can get confusing fast. To help you navigate the process with confidence, here are some essential terms every buyer and seller should know.

Key Terms:

• Appraisal: An expert’s estimate of a property’s market value, often required by lenders.

• Contingency: Conditions that must be met for a sale to proceed (e.g., inspection contingency).

• Earnest Money: A deposit showing your commitment to buy the home.

• Escrow: A neutral third party holding funds/documents until sale conditions are met.

• Closing Costs: Fees and expenses paid at the closing of a real estate transaction.

• Title: Legal ownership of the property. Title insurance protects against ownership disputes.

• Inspection: An examination of the property’s condition, usually by a licensed professional.

• MLS (Multiple Listing Service): The database real estate agents use to share listings.

• Down Payment: The upfront amount paid by the buyer toward the purchase price.

Knowing these terms will empower you to make informed decisions and avoid surprises during your home journey.