Vocabulary

Here are some Real Estate terms you may come across

• As-Is Sale:
  Selling a property in its current condition, without the seller making repairs or improvements before the sale. The buyer accepts the home "as-is."

• Closing Costs:
  Fees and expenses paid at the end of a real estate transaction, covering things like title insurance, appraisal fees, and attorney fees. These can range from 2-5% of the sale price.

• Cash Offer:
  An offer to buy a property without the need for financing (like a mortgage). This usually speeds up the selling process and avoids delays related to loan approval.

• Equity:
  The difference between the current market value of a property and the amount still owed on the mortgage. If a home is worth $200,000 and the owner owes $150,000, the equity is $50,000.

• Foreclosure:
  When a homeowner stops making mortgage payments, the lender can take ownership of the property through a legal process. The homeowner often loses the house as a result.

• Market Value:
  The price a property would likely sell for in the current real estate market, based on factors like location, condition, and recent sales of similar properties.

• Contingency:
  A condition that must be met for a real estate contract to move forward. Common contingencies include home inspections, appraisals, and financing approval.

• Title:
  A legal document that shows who owns the property. Before selling, the title must be clear, meaning no one else has a claim to the property. aka 'Deed'

• Offer:
  A formal proposal from a buyer to a seller, stating the price and terms they are willing to pay for the property. The seller can accept, reject, or negotiate the offer. aka Deed.

• Appraisal:
  A professional estimate of a property’s value, usually required by lenders before approving a mortgage to ensure the home is worth the loan amount.

• Inspection:
  A professional examination of a home’s condition, typically conducted by the buyer before finalizing the purchase, to identify any issues like repairs or structural damage.

• Escrow Period:
  The time between when the buyer and seller sign the contract and when the property officially changes ownership. During this time, inspections, appraisals, and other steps are completed.

• Earnest Money:
  A deposit made by a buyer to show they are serious about purchasing the property. If the sale goes through, the earnest money is applied to the purchase; if not, it may be forfeited.

• Vacant Property:
  A home or building that is currently unoccupied, which can be a factor in why a homeowner may want to sell quickly.

• Tired Landlord:
  A property owner who is worn out from managing rental properties, often dealing with difficult tenants or ongoing maintenance, and may be motivated to sell.

• Probate Sale:
  A sale that occurs when someone passes away, and their property is sold to divide assets among heirs or settle debts.

• Liens:
  Legal claims against a property, usually for unpaid debts (like taxes or contractor fees). Liens must be cleared before a property can be sold.

• ARV (After Repair Value):
  The estimated value of a property after it has been repaired or renovated. This is important for investors to determine potential profit.

• Real Estate Investor:
  Someone who buys properties with the intent to sell for a profit, rent, or hold for future value increases.

• Wholesaling:
  A real estate strategy where an investor secures a contract to buy a property and then sells that contract to another buyer for a profit, without actually purchasing the property themselves.

• Rehab:
  Short for rehabilitation, this refers to making repairs or renovations to a property to increase its value before selling it.

• FSBO (For Sale By Owner):
  When a homeowner chooses to sell their property without using a real estate agent, handling all aspects of the sale themselves.

• CMA (Comparative Market Analysis):
  A report that compares a property to similar homes in the area to estimate its market value, usually performed by real estate agents to help sellers set the right price.

• Property Taxes:
  Annual taxes paid by property owners to local governments, based on the assessed value of the home.

• Distressed Property:
  A home that is in poor condition or facing foreclosure, often sold at a discount because the owner is motivated to sell quickly.

• Lockbox:
  A secure box placed on a property that holds the key, allowing real estate agents to access the home for showings.

• Title Search:
  A process where records are examined to ensure the current owner has a clear title, free of any liens or claims, before selling the property.

• Motivated Seller:
  A homeowner who is eager to sell quickly, often due to financial hardship, a life event, or property issues. Motivated sellers may be more flexible on price and terms.