A:
Acceptance: Acceptance is a written statement from the seller that confirms approval of a buyer's offer.
Acre: An acre is a unit of land measurement in the U.S. customary measurement system. It is usually used to measure large areas of land such as a farm, a large residential home site, or a park.
Addendum: An addendum is a modification or addition attached to a real estate contract. It outlines terms that were not included in the original purchase or sale agreement.
Agency: Agency is the relationship between a real estate agent and a buyer or seller.
Amortization: Amortization is the schedule that is used to determine your monthly payment for a loan.
Appraisal: An appraisal is an assessment of a property's value at a specific point in time. The goal of the appraisal process is to determine the property's market value.
Assessed Value: The value assigned to a property by a public tax assessor for the purposes of taxation.
B
Broker: A licensed professional who negotiates and arranges real estate transactions.
Buyer's Agent: A real estate agent who represents the buyer's interests in a transaction.
Bylaws: Rules and regulations established by an organization, such as a homeowners association, to govern its operations.
C
Closing: The final step in a real estate transaction where ownership of the property is transferred from the seller to the buyer.
Closing Costs: Expenses incurred during the closing process, including fees for appraisal, title insurance, and legal services.
Commission: The fee paid to a real estate agent or broker for their services, typically a percentage of the sale price.
D
Deed: A legal document that transfers ownership of property from one person to another.
Down Payment: An upfront payment made by the buyer as a portion of the purchase price, typically expressed as a percentage.
E
Earnest Money: A deposit made by the buyer to show their serious intent to purchase the property, held in escrow until closing.
Equity: The difference between the market value of a property and the outstanding mortgage balance.
F
Foreclosure: The legal process by which a lender takes possession of a property due to the borrower's failure to make mortgage payments.
Fixed-Rate Mortgage: A mortgage with a fixed interest rate that remains the same for the entire term of the loan.
H
Homeowners Association (HOA): An organization that enforces rules and maintains common areas in a residential community.
Home Inspection: An examination of a property's condition by a licensed inspector before the sale is finalized.
I
Interest Rate: The percentage charged by a lender for borrowing money, expressed as an annual percentage of the loan amount.
Investment Property: Real estate purchased for the purpose of generating income or profit.
L
Lien: A legal claim against a property for unpaid debts, such as taxes or mortgage payments.
Listing: A property that is for sale and has been entered into a real estate database by a real estate agent.
M
MLS (Multiple Listing Service): A database of properties for sale, accessible to real estate agents and brokers.
Mortgage: A loan used to purchase real estate, secured by the property itself.
O
Offer: A formal proposal to purchase a property at a specified price and terms.
Open House: An event where a property for sale is open to potential buyers for viewing.
P
Pre-Approval: A lender's conditional approval of a loan amount based on a preliminary review of the buyer's financial situation.
Principal: The original amount of money borrowed on a mortgage, excluding interest.
R
Refinance: The process of obtaining a new mortgage to replace an existing one, often to secure a better interest rate or terms.
REALTOR®: A licensed real estate professional who is a member of the National Association of REALTORS®.
S
Short Sale: A sale of a property in which the proceeds are less than the amount owed on the mortgage, requiring lender approval.
Survey: A detailed map and measurements of a property's boundaries and features.
T
Title: Legal ownership of a property, documented by a deed.
Title Insurance: Insurance that protects against losses resulting from defects in the title.
U
Underwriting: The process by which a lender evaluates a loan application to determine the risk of lending money to the borrower.
V
Variable-Rate Mortgage: A mortgage with an interest rate that can change periodically based on market conditions.
W
Walk-Through: A final inspection of the property by the buyer before closing to ensure it is in the agreed-upon condition.
This glossary covers many of the essential terms used in real estate transactions and can serve as a helpful reference for anyone involved in buying, selling, or investing in property.