Real estate terms can be difficult to understand, especially for a home seller or home buyer. Terms like “Comps” and “Short Sale” can add to the stress of selling your home. To help any future home sellers, we compiled a long list of home seller real estate terms you need to know.
Knowing more means less stress for a home seller. Let’s get right into the essential home seller real estate glossary!
29 Home Seller Real Estate Terms You Need To Know
1. Appraisal – A very in-depth, impartial opinion of the value of your home. An appraisal is completed by a licensed, certified appraiser whom bases the home value on comparable homes in your city and area, as well as a home walkthrough.
2. Appraisal Management Company – An appraisal management company (AMC) is an independent organization that orders home appraisals once a lender notifies the AMC.
3. Approved for Short Sale – Term used when a home seller’s financial institution has approved a reduced home value listing, and the home is approved to be resold.
4. Attorney State – A state that requires a real estate attorney be responsible for the closing of a home sale.
5. Buyer’s Market – A time in the real estate market when there are more homes for sale than buyers. This causes asking prices to drop and home sellers wait a long time to sell their homes.
6. Cancellation of Escrow – When a home buyer backs out of the sale of a home. Not good for a home seller.
7. Capacity – Amount of money a home buyer can borrow.
8. Closing – A meeting when the actual ownership of a home is transferred from home seller to home buyer. Lenders and real estate agents are also present at the closing.
9. Closing Costs – Fees when a home is purchased, and due at closing. Closing costs may include title search, pest inspection, home inspection, appraisal costs, and more. Buyers normally cover closing costs based on a percentage of the home’s purchase price.
10. Closing Disclosure – The closing disclosure (CD) is a multi-page document a home buyer receives three days prior to closing.
11. Closing Escrow – Final transfer of property from home seller to home buyer with paperwork delivered to all involved parties. This often falls on the escrow agent.
12. Comparative Market Analysis – A comparative market analysis (CMA) is a very detailed analysis of your home, calculating your home’s value based on home similar to yours in the same area. Condition, age, size, and location are all key CMA factors.
13. Comps – Comps are comparable home sales in your city or area within the last six months. Comps give home real estate agents, direct buyers, and home sellers an estimate of a home’s value.
14. Conventional Loan – Home loan that is not guaranteed by the government, like a VA or FHA loan.
15. Day On Market (DOM) – this is the length of time a home is actively listed on the real estate market for. Average DOM is two months, according to the National Association of Realtors.
16. Earnest Money – This is a security deposit a home buyer makes to assure the home seller that there is serious intent to purchase the home.
17. Equity – The home value percentage a homeowner actually owns.
18. Foreclosure – A foreclosure is when a bank repossesses a home due to failure to pay mortgage payments over a period of time.
19. Home Inspection – An inspection of a home, normally occurring when a home is under contract or in escrow.
20. In Escrow – Length of time, typically 30 days after a home buyer makes an offer on a home that a home seller has accepted. This is when a home inspection and appraisal occurs.
21. Listing Price – Price of a home listed on the real estate market by the home seller.
22. Multiple Listing Service – A multiple listing service (MLS) is a database of listed properties listed on the real estate market.
23. Sellers Market – When market conditions present more home buyers than homes for sale.
24. Short Sale – When a home seller owes more on his or her home than the home is worth. This is also known as being upside down or underwater on a home.
25. Transfer Stamps – Form that shows the home buyer has paid transfers taxes.
26. Transfer Taxes – Taxes by the state or county when there is a home sale and a transfer of title is made.
27. Underwriting – A lender’s process when assessing a home buyer’s income, credit, and all risk involved prior to approving a home mortgage.
28. Walkthrough – The final home inspection of a home buyer prior to closing.
29. Water Certificate – Certificate of proof that water account for a home has been paid, per the home seller’s responsibility.
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The above home seller real estate terms are always great to know when selling a home. There are more terms you may hear, but these 29 are among the most common.
You can also skip the terminology. Instead, get a cash offer on your home within 24 hours. DealHouse makes selling a home easy. No real estate agents, no commissions, no stress, and no unfamiliar terms to learn.