All Things Real Estate

Have you ever heard a real estate agent talk but have no idea what they are talking about because they are using big and fancy real estate terms? Do not worry because we are here to help you learn the terminology, so when you hear someone talking about real estate, then you can contribute to the conversation! Below are some top terms used in real estate!

• Comps
  • Comparison of recent sales of similar properties in the area to establish a home’s value.
• Contingencies
  • Contracts include conditions that must be met to close, depending on the
• Conventional Loan
  • A loan not insured or guaranteed by the government but issued by a private lender which the insurance commonly paid by the borrower. 
• Days On Market (DOM)
  • The number of days a property has been on the market. Fewer offers are usually received when a property has been on the market for a longer period
• Down Payment
  • “Amount of money that a buyer has saved to help fund the purchase of a home” and in real estate “a common down payment amount is 20 percent, which means the buyer will be paying 20 percent of the total purchase price upfront.”
• Earnest Money
  • “A sum of money you put down to demonstrate your seriousness about buying a home,” is most often it's held in the listing broker's trust account and then disbursed at closing, and typically 1 - 3% of the value of the offer or more
• Escrow Account
  • “An easy way to manage property taxes and insurance premiums for your home because you don't have to save for them separately.”
• Federal Housing Administration (FHA) Loan
  • Loans from private lenders are in correspondence with the Federal Housing Administration. The FHA loans money to borrowers with lower credit scores and lower down payments.
• Lien
  • A legal term that allows a creditor to seize ownership of the property granted by a loan when the borrower fails their loan obligations of the property.
• Multiple Listing Service (MLS)
  • A website where real estate listings are posted so that other agents and brokers can view them.
• Title Insurance
  • “A way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy.”

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