Real Estate Terms Every Buyer and Seller Should Know

Buying or selling a home comes with a lot of new vocabulary. If you're hearing terms you've never heard before, don't worry because you're not alone! Real estate has its own language, and understanding a few common terms can help you feel more confident throughout the process.

Here are some of the most common real estate terms you'll hear.

Pre-Approval

A pre-approval is a letter from a lender showing how much you may be able to borrow for a home. It gives you a clear budget and lets sellers know you're a serious buyer.

Earnest Money

Earnest money is a deposit a buyer makes after an offer is accepted. It shows the seller you're committed to purchasing the home and is typically applied toward your closing costs or down payment.

Contingency

A contingency is a condition that must be met before the sale can move forward. Common contingencies include:

• Home inspection
• Financing approval
• Home appraisal
• Sale of the buyer's current home

Appraisal

An appraisal is an estimate of a home's value completed by a licensed appraiser. Lenders use this to ensure the home's value supports the loan amount.

Home Inspection

A home inspection is a professional evaluation of the property's condition. The inspector checks major systems and identifies any potential issues before closing.

Closing Costs

Closing costs are the fees paid at the end of the transaction. They can include lender fees, title fees, recording fees, prepaid taxes, homeowners insurance, and other transaction-related expenses.

Equity

Equity is the difference between what your home is worth and what you still owe on your mortgage. As your home's value increases or you pay down your loan, your equity grows.

Escrow

Escrow is a secure account where money or important documents are held until all parts of the real estate transaction have been completed.

Multiple Listing Service (MLS)

The MLS is the database real estate professionals use to list and search for homes. It gives buyers the most up-to-date information on properties for sale.

Offer

An offer is a buyer's proposal to purchase a home. It includes the purchase price, financing details, contingencies, requested closing date, and other important terms.

Closing

Closing is the final step in the home-buying or selling process. This is when all documents are signed, funds are transferred, and ownership of the home officially changes hands.

Days on Market (DOM)

Days on Market, often called DOM, refers to how long a property has been listed for sale. This can help buyers understand how long a home has been available.

Comparable Sales (Comps)

Comparable sales, or comps, are recently sold homes that are similar in size, location, and features. Realtors use comps to help determine a home's market value.

Don't Be Afraid to Ask Questions

Real estate can seem overwhelming at first, but that's exactly why we're here. No question is too small, and understanding the process helps you make confident decisions.

At The Mateyoke Group, we believe an informed client is an empowered client. Whether you're buying your first home, selling your current one, or just starting to explore your options, we'll help explain every step along the way—without the confusing jargon.

Real estate doesn't have to be complicated when you have the right team by your side.