When selling a home, you will encounter various terms that are essential to understand. We have listed some common home seller vocabulary words below to help you:
General Terms
- Appraisal: An evaluation of a property’s value, usually conducted by a licensed appraiser.
- As-Is Condition: Selling a property in its current state without agreeing to make repairs or improvements.
- CMA (Comparative Market Analysis): A report that compares your home to similar properties in your area to estimate its market value.
- Closing: The final step in a real estate transaction, where ownership of the property is transferred from seller to buyer.
- Closing Costs: Fees and expenses, including title insurance, escrow fees, and recording fees, that are due at the closing.
- Commission: The fee paid to a real estate agent for their services, typically a percentage of the sale price.
- Contingency: A condition in a purchase agreement that must be met before the sale can be completed, such as a satisfactory home inspection or securing financing.
Financing Terms
- Equity: The difference between the market value of your home and the outstanding balance of any loans or mortgages.
- Mortgage Payoff: The amount of money required to fully pay off the mortgage on the home being sold.
- Pre-Approval: A lender’s preliminary approval of a buyer’s loan, giving an estimate of how much they can borrow.
Legal and Contractual Terms
- Earnest Money: A deposit made by a buyer to show good faith in their offer to purchase the property.
- Escrow: A third-party service that holds money and documents during the home sale process to ensure all terms of the agreement are met.
- Fiduciary Duty: The legal obligation of a real estate agent to act in the best interest of their client.
- Inspection: A thorough evaluation of the home’s condition, usually requested by the buyer.
- Listing Agreement: A contract between a seller and a real estate agent that gives the agent the right to sell the property.
Marketing and Pricing Terms
- FSBO (For Sale By Owner): Selling a home without the assistance of a real estate agent.
- List Price: The price at which the property is advertised for sale.
- Staging: Preparing a home for sale by decluttering, rearranging furniture, and making the home more appealing to potential buyers.
After the Sale
- Deed: A legal document that transfers ownership of a property from one party to another.
- Title: Legal ownership of the property. The title must be “clear” of any liens or disputes to transfer ownership.
Understanding these terms can make the home selling process smoother and less confusing.