The ABC's of Real Estate

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An estimation of a home's market value by a licenses appraiser based on comparable recent sales of nearby homes.

An offer on a home under contract that becomes active if the primary contract falls through

An offer that is accepted by the seller but certain conditions must be met before the sale is final

The percentage of the home purchase price that is paid upfront from the buyer. Typically an attorney will hold this in an escrow account. Minimum is typically 3.5% of the purchase price down. 

A neutral third party that holds funds from the buyer and distributes them when all conditions have been met based on the contract.

The government agency that insures loans designed for low to moderate income borrowers. This is common for many first time home buyers as the minimum down payment is only 3.5%.

 GreatSchools’ trusted ratings and school information helps parents find the right school for their family and improve schools in their communities. 

A management organization within a community, subdivision, or neighborhood that creates and enforces rules for homes within its area. It commonly has a monthly fee that ranges from small to large.

An examination of a property and its systems performed by a qualified professional, usually follows the conclusion of attorney review. 

A loan whose principal value exceeds the standard limits. This type of loan commonly used for luxury homes. 

 An interest rate that determines bank lending rates and the cost of credit for borrowers. 

The price of a home for sale set by the seller and his/her listing agent. Real estate agents help set the price of the home right by doing a Comparative Market Analysis (CMA) to provide an accurate home valuation.  

A database for real estate agents to list and market homes for sale. Only licensed real estate agents & brokers can list homes on the regional MLS. 

The amount of money a seller takes away from selling a home, after taking into account the brokerage commissions and other closing costs. 

An event where a house or property is open for viewing to potential buyers for a scheduled period of time. Many open houses occur on weekends, especially on Sundays. 

An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan. During the process, a lender will evaluate the income & expenses of the borrower, including taking a thorough look at the borrower’s credit report & score. This is required for most offers. 

A legal document that transfers ownership of a home from one party to another, but does not give any guarantee as to what is being transferred. It simply transfers whatever interest the homeowner has in the property to his/her recipient.

A repossessed property owner by a lender after an unsuccessful sale at auction. The lender  takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan. 

A document completed by the seller disclosing the property's history, condition, and defects that are known to the best of the sellers ability.

The right to ownership of a specific real estate property. Once the transaction closes, the buyer will receive a final title policy recording their names as the new legal owners, along with the amount of title insurance.

A buyer has submitted an offer and the seller has accepted but the closing is not final. This happens after the attorney review period. 

This is a unique mortgage option for current & former members of the military. It's made by lenders but guaranteed by the U.S. government. 

A final inspection of a home before closing. Buyers should complete a final walkthrough with their real estate agent to make sure any agreement to make repairs on the property have been fulfilled before the closing papers are signed. Typically happens a day or two before closing. 

The final signature needed to official close on your dream home. 

This is the compensation a lender pays a mortgage broker to sell a loan with a higher interest rate. The YSP is listed on the loan estimate and closing disclosure. 

A building that comes to the very edge of the property line on at least one side. Units may be attached to one another in a zero-lot-line housing development, leaving no room for a yard. Many townhouse developments are built on zero-lot-lines.