Real Estate Lingo 101

Real estate industry jargon can be confusing and overwhelming, not only to first time home buyers, but also to seasoned buyers and sellers as well. To help you navigate this process, we've compiled a list of the top 20 terms and phrases used in real estate transactions. Here’s your chance to master the lingo!

Appraisal - Written explanation of a property's fair market value, often based on comparable home sales in the area.

Appreciation - The increase in the value of a home based mostly on inflation and market conditions.

Buyer's Market - A market with more sellers than buyers; too many homes on the market without enough buyers causes lower prices because homes are harder to sell.

Conventional Loan - A loan not insured or guaranteed by the government.

Deed - A written document for a title to real estate to be conveyed from one party to another.

Due Diligence - Taking care before signing a contract to research, analyze, and gather information about a property.

Earnest Money - Money you give to the seller (or seller's agent) to show your good faith when making an offer to purchase.

Escrow - A bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled.

FHA Loan - Federal Housing Administration mortgage insurance which is provided by an FHA-approved lender. Enables qualifying Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.

HOA - An HOA is the abbreviation for Home Owners Association.

HOA Dues - Fees paid to your Home Owners Association to cover the cost of yard maintenance, disaster insurance, and neighborhood-wide amenities.

Home Inspection - A limited observation of a home made prior to purchasing that includes any areas needing improvement or attention before closing.

Homeowners Insurance - Type of property insurance covering a private residence

Mortgage - A legal document promising a property to the lender as collateral for payment of a debt.

Multiple Listing Service (MLS) - Database of current homes on the market used by real estate professionals.

PITI - The abbreviation for principal, interest, taxes and insurance; usually a monthly payment on a mortgage to a lender. Also used to pre-qualify a buyer.

Points - An fee paid up front to the lender at closing to lower the interest rate over the life of the loan. Also known as discount points or purchase points.

Realtor - A member of the National Association of REALTORS® who acts as an agent for the sale and purchase of buildings and land; a real estate agent.

Staging - Preparing a home for sale by improving the property's appeal for potential buyers.

VA Loan - A mortgage loan issued by qualified lenders guaranteed by the U.S. Department of Veterans Affairs.

We’re Here to Partner With You

Real estate transactions can be challenging! Whether buying your dream home or selling your current property for an upgrade, you’ll want an experienced and knowledgeable real estate team at your side. At Crye-Leike, REALTORS® of Chattanooga we have the experience and industry-leading resources to help you reach your real estate goals. Contact my cell at 423-304-5227 and let us get to work exceeding your expectations.