Real Estate Lingo From A-Z
Whether you’re buying a home or looking to sell yours, chances are you’ll come across your fair share of real estate jargon. Oftentimes realtors will use acronyms as part of their listings, and rather than having to look up every word, we wanted to bring the complete list of most-used terms to you! Check out our collection of real estate lingo so you look like a pro for your next move.
3B/2.5B - Three bedrooms and two and a half bathrooms. In order to be called a bedroom in our area, the room must be a sleeping area with a window and a closet. A full bath is a room with a toilet, sink and bathtub. A half bath otherwise known as powder room only has a toilet and a sink.
Appraisal - An appraisal is an unbiased professional opinion of a home's value. If you list your home for a certain amount and it ends up appraising for less, that could hinder the deal from going through.
Appreciation - An increase in the value of a property.
Buyer’s Agent - There are usually two agents involved when you buy a home; the “buyer’s agent,” who represents you, and the “listing agent,” who represents the home seller.
CMA - A CMA or a comparative market analysis is partially how the realtor will come up with the price of your home. The CMA is a report that shows the prices homes comparative to your home sold for and helps the realtor decide what the best price is that you can get in today’s market in your area.
Closing Costs - Closing costs are all of the expenses that must be paid by the buyer and seller at the closing table. These costs usually include commission, mortgage fees, title insurance, etc.
Contingency - This is a part of an agreement that keeps a contract from being binding until a certain condition is met. For example, if you make an offer on a home, most likely you will make that offer contingent on an inspection so you can get out of the contract in the event that you find something major wrong with the house during the inspection period.
Counter Offer - A new offer, made after a previous offer has been rejected by the owner.
Depreciation - A decrease in the value of a property over time.
Equity - The value an owner of a property has in the home above the debt owed.
Fixtures - These are items that are somehow fixed in a home that would cause damage if taken out. This would include carpets, built-ins, etc. These items are usually included in the sale of the home unless otherwise noted.
FSBO - For sale by owner
Interest - The amount paid by a borrower to a lender in addition to the main amount borrowed (the “principal”). The interest rate can be fixed or variable depending on your mortgage company and the type of loan.
Inspection - After you’ve made an offer on a home, you’ll need to schedule an inspection in which you’ll pay a profession to check the home and review things like the plumbing, electrical, foundation, walls, heating and appliances for potential problems.
Listing - Real estate agents frequently refer to homes for sale as “listings.” A “listing” on a website shows information about the home, like the price and number of bedrooms. If a home were FSBO, it would not be considered a listing.
Lockbox - This device is what holds the key to a for-sale home so that real estate professionals can open the home to show their clients. The lockbox can only be opened by a realtor with your permission, a special device and a unique code so that your home is safe during the list process.
MLS - The MLS or multiple listing service is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Our local MLS is not accessible to anyone, but a licensed realtor will be able to give you access to all of the homes listed there. This is the only up-to-date source for for-sale homes, whereas third party sites like Trulia and Zillow can have incorrect or outdated listings.
Pre-Approval Letter - Before you start looking at homes, many realtors will require you to have a pre-approval letter from the bank or mortgage company. This letter estimates how much they’re willing to loan you, and thus gives you an idea of what kind of home you can afford.
REALTOR®: A real estate broker or sales associate who is a member of the National Association of REALTORS®. Not all real estate agents are REALTORS®.
Reverse Mortgage - A type of mortgage, usually used by older homeowners, where repayments don’t need to be made until after the property is sold, or the last homeowner dies.
Zoning - An urban planning tool used by local governments to determined how land is to be used. You’ll want to look into what school a home is zoned for before you buy it. Even if you don’t have children and don’t plan to have children, homes in good school zones can sell much faster.
