Real Estate Lingo 101
Common real estate words & what they mean
Entering the real estate market for the first time? Be ready to jump into your home search by brushing up on some commonly used words and phrases. From Realtor lingo to financial phraseology, here’s an A to Z quick reference guide to get you started, whether you’re selling, buying, or thinking about either. And of course, if you have questions, we’re here 24/7 to help. Give us a call, send a chat, or email info@roohanrealty.com to get #MovingWithRoohan ;)
Addendum
Additional documents included in a homebuyer’s Purchase and Sale Agreement. Addenda (plural for addendum) may include contingencies, as-is addenda (home is sold as-is) or financing addenda (sale is contingent upon Buyer securing a loan).
Backup offers
When a Seller has already accepted one offer, but continues to accept other offers from potential Buyers in case the initial offer falls through.
BR
Bedroom.
Closing
A meeting where all paperwork is finalized, documents signed, and checks cut. Usually attended by the Buyer(s), their real estate agents, and the Buyer(s) and Seller(s) attorneys.
Closing costs
All charges (aside from the actual cost of the property) that Buyers or Sellers must pay when the property is transferred. Closing costs typically include lender’s fees and points or prepaid interest, a prorated share of the property taxes, transfer taxes, credit check fees, homeowners’ and title insurance premiums, deed filing fees, real estate agent commissions, inspection and appraisal fees, and attorneys’ fees. Some closing costs are tax-deductible.
CMA
A comparative market analysis or competitive market analysis. This is a report that helps show a subject property’s potential value based on comparable homes in the area – ones that have sold, haven’t sold, or are pending with similar features.
Co-listing agent
A secondary listing agent assigned to help market and sell a subject property.
Concessions
A benefit/discount (can be made by both Buyers and/or Sellers) negotiated to help close a deal. Examples include covering the costs to replace appliances, moving expenses, or repairs to the home. Concessions are usually included in the closing costs.
Contingency
A provision in a contract stating that some (or all) of the terms of the contract will be altered/voided by the occurrence of a specific event, usually outlined using specific dates.
Deed
A legal document filed with the county showing transfer of real property. It is signed by the Buyer(s) at closing and kept at the county clerk’s office; the Buyers will receive a copy. A quitclaim deed is a deed that transfers property rights without validation of any ownership; it i usually used between spouses and family members.
DOM
Days on market.
Down payment
A percentage of the property’s purchase price (usually between 5-20%) paid up front.
DR
Dining room.
Easement
A legal right to use another’s land for a specific limited purpose. In other words, when someone is granted an easement, he is granted the legal right to use the property, but the legal title to the land itself remains with the owner of the land.
Encroachment
A situation where a property owner violates the property rights of his neighbor by building something on the neighbor’s land or by allowing something to hang over onto the neighbor’s property.
Escrow
The holding of funds or documents by a neutral third party prior to a closing.
Expired
When a property that was listed for sale passes a date agreed upon in the listing agreement (usually 6-12 months from signing) without having been successfully sold or the listing agreement renewed.
FHA
Federal Housing Administration. A government agency that insures loans designated for lot-to-moderate income borrowers.
FP
Fireplace.
FR
Family room.
Frontage
The amount of surface area a property shares with a bordering feature; usually referring to a road or body of water.
FSBO
For sale by owner. While this is an option for sellers, it’s not one we recommend. See why it’s better to choose Roohan.
HOA
Homeowners’ Association. A management organization created to govern a community/subdivision/neighborhood/condominium complex by collecting periodic dues (monthly, quarterly or annually) and maintaining the rules and regulations as set forth by the association. Many HOA’s also include services like road maintenance, lawn care for common areas and general community upkeep.
HW
Hardwood.
Inspection
An investigation conducted by a licensed inspector to discover any issues or repairs that need to be made before buying the home. Inspections usually cover plumbing, electrical, foundation, walls, doors, windows, ceilings, floors, water heater, heating and cooling units, and appliances. Additional inspections may be requested for roofing, sewage system, mold, radon and lead based paint.
Listing
A contract between a real estate Broker and homeowner outlining an agreement to market and sell a property. The term “listing” can also refer to the property itself.
Lockbox
A small box affixed to a property for sale that allows real estate professionals to access the key(s) after entering a security code.
LR
Living room.
MLS
Multiple Listing Service. MLS organizations collect, compile and distribute information about homes listed for sale by its members,who are real estate Brokers.
OH
Open house. An event hosted by the listing broker/agent to showcase a home to potential buyers.
Pending
A status given to properties in the MLS that are listed for sale, but have accepted an offer and waiting to close.
PITI
Abbreviation for the major expenses that make up a mortgage payment: principal (the amount borrowed), interest, (property) taxes, and (homeowners’) insurance.
ROW
Right of way, meaning the right to cross another’s property to go to and from another parcel of land.
SEO
Search Engine Optimization. The process of getting website traffic from searches on search engines like Google.
SF
Single family. Can also sometimes be used as an abbreviation for square feet.
Short sale
A home that is listed for sale at a price lower than the amount owed on the mortgage. Homeowners hope to sell their home as a short sale to avoid going into foreclosure. What can make it difficult to buy a short sale is that there are often two mortgages on the home and both lenders must approve the sale.
Spec home
A home that is built based on speculation of what home buyers are looking for.
SQFT
Square feet.
SS
Stainless steel.
Survey
An assessment done by a surveyor who determines the exact amount of land associated with a subject property and document boundary lines, easements and encroachments.
STAR
The School Tax Relief (STAR) exemption provides a partial exemption from school taxes for most owner-occupied, primary residences. It was signed it into law on August 7, 1997. Learn more about STAR deadlines and procedures here.
Title
A legal document identifying the right to ownership of real property.
Walk-through
A final inspection conducted before the closing.
W/D
Washer/dryer
WIC
Walk in closet.
Zestimate
Zillow’s estimated market value. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data. There’s a lot more we can tell you about Zillow and Zestimates (like how during 2016, our company sold area homes for an average of $114K higher than their quoted Zillow Zestimate values…!) so if you have a question, PLEASE contact us. We want you to be informed.
Computers are convenient, but let a human determine your home’s value!
Zillow
A media company (which now also owns former competitor, Trulia) with popular, consumer-facing brands of websites/apps featuring real estate data pulled from MLS’s, county websites, public records, and information inputted from people like you.
The key here is the word “media.” Zillow Group has even admitted themselves that they are a media company, not a real estate company. Their technology and tools are helpful from homeowners, but by no means the end-all-be-all when it comes to the process of buying or selling a home.
A Word to the Wise
This list is only meant to help you get started on your real estate acumen, it’s not exhaustive. There is more to learn, and we have a team that is always ready to answer your questions; and when needed, do some translating. Come by the office or give us a call anytime to speak with a real estate expert.