Whether you are a first time homebuyer or a seasoned veteran, it is important to become familiar with common real estate terms before you start your home buying process.
Agent | A person authorized to act on behalf of another. | |
Appraisal | A statement of value or estimation of the value of a property conducted by a third party person. | |
Assessment | The official valuation placed on a property for taxation or public improvements. | |
Buyer's Agent: | A real estate broker who represents a prospective purchaser in a real estate transaction. | |
Comparable Market Analysis (CMA) | A study of recently sold homes, properties that were withdrawn from the market, and currently listed properties that are similar to another home in terms of price, location, style and amenities. | |
Closing | All parties to a transaction conclude their details and transfer ownership of a house. | |
Contingencies | Conditions specified in purchase contract, such as a satisfactory home. | |
Earnest Money | A sum of money put up by a prospective buyer as evidence of intention when offering on real estate. | |
FSBO | A property on the market not listed by a real estate broker but instead is For Sale By Owner. | |
Foreclosure Property | A property in the legal process of the lender terminating the owner's right to it that was pledged as security for a debt. | |
Multiple Listing Service (MLS) | A system by which a number of real estate firms share information about homes that are for sale. | |
Principal | A main party in a real estate transaction such as a buyer, seller, owner, etc. | |
Property Tax | A government tax on privately owned property based on its market value. | |
Recording | The filing of a real estate transaction with the government. A transaction is considered final when it is recorded. | |
Title | A specific document which serves as proof of ownership. | |
Title Company | A corporation whose primary function is to insure titles to real estate. | |
Warranty | An affidavit given to specify the condition of a property. |