Speak like a pro: must-know terms every realtor should master
If you’re getting started in real estate, there are some key terms you’ll come across in your daily life. We’ve created a glossary of every term you should know, so you can hit the ground running in your new career as a realtor.
Glossary of terms for realtors
Appraisal
An unbiased estimate of a property’s value, typically conducted by a licensed appraiser, used for mortgage approval or property sales.
Broker
A real estate professional who has passed the state broker exam and may operate independently or employ agents.
Buyer’s agent
A real estate agent who represents the buyer in a property transaction, negotiating on their behalf.
Closing
The final stage of a real estate transaction where all legal documents are signed, and ownership of the property is transferred.
Closing costs
The fees and expenses (beyond the purchase price) incurred by buyers and sellers during the property transaction, such as taxes, title insurance, and escrow fees.
Comparative Market Analysis
A report used to determine a property’s value based on similar recently sold properties in the area. This is usually shortened to CMA.
Contingency
A condition included in a real estate contract that must be met for the transaction to proceed (e.g., inspection or financing contingencies).
Counteroffer
A response to an initial offer, proposing changes to the terms or price before an agreement is reached.
Deed
A legal document that transfers ownership of a property from the seller to the buyer.
Dual agency
A situation where one real estate agent or brokerage represents both the buyer and seller in a transaction.
Earnest money
A deposit made by a buyer to demonstrate their serious intent to purchase a property, held in escrow until closing.
Escrow
A neutral third party that holds funds or documents until the terms of a property transaction are met.
For sale by owner
You’ll usually see this shortened to FSBO. A property listed for sale directly by the owner, without representation by a real estate agent.
Home inspection
A professional evaluation of a property’s condition to identify potential issues before the sale is finalised.
Homeowners Association
You’ll probably already know this as a HOA. An organisation that manages common areas and enforces rules for properties within a specific community or building.
Listing agent
A real estate agent who represents the seller in a property transaction.
Multiple Listing Service
This is usually called an MLS by realtors. A database where real estate professionals list properties available for sale and share information with other agents.
Offer
A formal proposal by a buyer to purchase a property, including price and terms.
Pre-approval
A preliminary evaluation by a lender indicating the amount a buyer can borrow based on their financial situation.
Principal
The original loan amount borrowed, or the main party in a real estate transaction (e.g., buyer or seller).
Real estate investment trust
Usually written as REIT. A company that owns, operates, or finances income-generating real estate.
REALTOR®
A real estate professional who is a member of the National Association of REALTORS® and adheres to its Code of Ethics.
Short sale
The sale of a property for less than the outstanding mortgage balance, usually requiring lender approval.
Staging
Preparing a property for sale by arranging furniture and décor to enhance its appeal to potential buyers.
Title
A legal document proving ownership of a property.
Title insurance
A policy that protects against financial loss due to defects or disputes in the property’s title.
Under contract
A property that has an accepted offer but has not yet closed.
Zoning
Local government regulations that control land use and determine how properties in certain areas can be used.
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