Real Estate Dictionary

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The process of gradually paying off a loan over time. 

Example: A 30-year mortgage amortizes through monthly payments.

A professional estimate of a property's value. 

Example: The lender required an appraisal before approving the mortgage.

When there are more homes for sale than buyers, leading to lower prices. 

Example: Home prices dropped due to a buyer’s market.

Fees paid at the end of a real estate transaction.

 Example: The buyer budgeted for closing costs like loan fees and title insurance.

A report that helps determine a property’s market value based on recent sales. Example: The agent provided a CMA to price the home competitively. A report that helps determine a property’s market value based on recent sales. 

Example: The agent provided a CMA to price the home competitively.

The initial upfront payment made when purchasing a home. 

Example: The buyer put down 20% as a down payment.

The difference between a home's market value and the amount owed on it. 

Example: The homeowner gained equity as property values increased.

A home loan with an interest rate that stays the same. Example: The buyer chose a fixed-rate mortgage for predictable payments.

An evaluation of a property’s condition before purchase. Example: The home inspection revealed plumbing issues.

The percentage charged by lenders for borrowing money. 

Example: The mortgage had a 5% interest rate.

 A loan used to purchase a home. 

Example: The buyer secured a 30-year mortgage.

 A lender’s confirmation of how much a buyer can borrow. 

Example: The buyers got a pre-approval letter before house hunting.

A condition that must be met for a real estate contract to move forward. 

Example: The buyer included a financing contingency in their offer.

A neutral third party that holds money or documents until contract conditions are met. Example: The buyer’s deposit was placed in escrow until closing.

A legal document that transfers ownership of a property. 

Example: The deed was signed at closing.

A licensed professional who helps buy or sell homes. 

Example: The real estate agent negotiated the deal for the seller..

When there are more buyers than homes for sale, leading to higher prices. 

Example: Homes sold quickly due to a seller’s market.

A legal document proving property ownership. 

Example: The title was transferred to the new owner at closing.

The legal process where a lender takes ownership of a property due to unpaid debt. Example: The homeowner faced foreclosure after missing several mortgage payments.

Real estate purchased to generate rental income or resale profit. 

Example: The investor bought a duplex as an investment property.

A database of properties for sale used by real estate professionals. 

Example: The agent listed the home on the MLS to attract buyers.

Laws that regulate land use in specific areas. 

Example: The zoning laws prevented a commercial building in the neighborhood.