Real estate terms, in plain English

A licensed appraiser's professional estimate of a home's market value, usually required by a lender before it will fund a mortgage.

The increase in a property's value over time.

Adjustable-Rate Mortgage — a loan whose interest rate can change over time based on a benchmark, after an initial fixed period.

A property sold in its current condition, where the seller won't make repairs. Buyers can usually still inspect.

The agent representing the buyer's interests in a transaction.

The final step of a transaction where documents are signed, funds change hands, and ownership transfers.

Fees paid at closing beyond the purchase price — lender fees, title, escrow, taxes, insurance, and more. Often 2–5% of the price.

Comparative Market Analysis — an agent's estimate of value based on recent comparable sales ("comps").

Comparable recent sales used to estimate a home's value.

A condition in a contract that must be met for the sale to proceed — common ones cover financing, inspection, and appraisal.

A listing marketed before it's fully active on the market, to build buyer interest early.

A mortgage not backed by a government program (unlike FHA or VA loans).

How long a listing has been for sale — a key signal of demand and pricing.

The upfront cash a buyer pays toward the price; the rest is typically financed.

A good-faith deposit a buyer makes to show they're serious; credited toward the purchase at closing.

The share of a home you actually own — its value minus what you still owe.

A neutral third party that holds funds and documents until all conditions of the sale are met.

A government-backed mortgage with lower down-payment requirements, popular with first-time buyers.

A loan whose interest rate stays the same for its entire term.

A professional evaluation of a home's condition, typically done during a buyer's contingency period.

Homeowners Association — an organization in some communities that maintains shared areas and charges dues.

The agent representing the seller.

Multiple Listing Service — the regional databases agents use to share listings.

A loan used to buy real estate, secured by the property itself.

A lender's conditional commitment to lend up to a certain amount, based on a review of your finances — stronger than a pre-qualification.

Private Mortgage Insurance — usually required when a buyer puts down less than 20%; protects the lender, paid by the borrower.

Optional upfront fees paid to a lender to lower your interest rate (each point is 1% of the loan).

The amount of money borrowed (or still owed), separate from interest.

Homes available before or without a public MLS listing.

Replacing an existing mortgage with a new one, often to get a lower rate or tap equity.

Legal ownership of a property; "clear title" means no liens or disputes.

Protects the buyer and lender against defects in the title (e.g., an undiscovered lien).

A home with an accepted offer that hasn't closed yet.

The lender's process of verifying a borrower's finances and the property before approving a loan.

A mortgage guaranteed by the Department of Veterans Affairs for eligible service members and veterans, often with no down payment.

A buyer's final check of the property just before closing to confirm its condition.