Buyer & seller resources
Real estate glossary
Real estate has a language of its own. Here are the terms you'll hear most, explained in plain English.
- Appraisal
- A professional, unbiased estimate of a home's market value, usually required by a lender before approving a mortgage.
- Closing Costs
- Fees paid at the end of a real estate transaction — lender fees, title insurance, taxes and prepaid items — typically 2–5% of the purchase price.
- Contingency
- A condition that must be met for a contract to move forward, such as a satisfactory home inspection or the buyer securing financing.
- Earnest Money
- A good-faith deposit a buyer makes to show they're serious about purchasing a home. It's applied toward the purchase at closing.
- Equity
- The difference between what your home is worth and what you still owe on it — the portion of the home you truly own.
- Escrow
- A neutral third party holds funds and documents until all conditions of the sale are met, protecting both buyer and seller.
- MLS
- Multiple Listing Service — the shared database agents use to list homes for sale and find properties for their clients.
- Pre-Approval
- A lender's written commitment, based on your finances, stating how much they'll lend you — it makes your offer far stronger.
- Title Insurance
- Protects the buyer and lender against problems with a property's ownership history, like liens or disputed claims.
- Under Contract
- A seller has accepted a buyer's offer, but the sale hasn't closed yet — remaining contingencies are still being worked through.
Run into a term we didn't cover? Just ask — we're always happy to explain.