Real Estate Vocabulary

Real estate vocabulary covers terms for property, people, and processes, including Appraisal (property valuation), Equity (owner's stake), Escrow (third-party funds holding), Mortgage (home loan types like Fixed/ARM), Contingency (conditions for sale), Closing (final transaction), and roles like Agent, Broker, and Landlord. Key concepts involve Title (ownership proof), Down Payment (initial cash), Amortization (loan repayment), and market terms like MLS (Multiple Listing Service) and FSBO (For Sale By Owner).

Key People & Roles

• Agent/Broker: Licensed professional helping with transactions.
• Appraiser: Estimates property value.
• Landlord/Tenant: Owner who rents out property/person who rents it.
• Buyer/Seller/Purchaser: Parties in a transaction.

Property & Value

• Appreciation/Depreciation: Value increase/decrease over time.
• Assessed Value: Value for tax purposes.
• Equity: What you own in your home (Value - Debt).
• Fair Market Value: What a property would sell for.
• MLS (Multiple Listing Service): Database for agents.

Buying & Selling Process

• Closing: Final steps of a sale.
• Closing Costs: Fees paid at closing.
• Contingency: Condition that must be met (e.g., inspection, financing).
• Down Payment: Initial cash payment.
• Earnest Money: Deposit showing serious intent.
• Offer/Counteroffer: Proposal/rejection with new terms.
• Title: Legal document proving ownership.

Financing & Loans

• Mortgage: Loan for property purchase.
• Fixed-Rate Mortgage: Interest rate stays the same.
• Adjustable-Rate Mortgage (ARM): Interest rate changes periodically.
• Amortization: Paying principal & interest over time.
• APR (Annual Percentage Rate): Total yearly cost of loan.
• FHA/VA Loans: Government-insured loans.

Key Terms & Concepts

• As-is: Property sold without repairs.
• Escrow: Neutral third party holding funds/documents.
• Foreclosure: Lender taking property for non-payment.
• Zoning: Local laws on property use.

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