Complete Real Estate Glossary for Homebuyers 2023

If you're a first-time homebuyer or even a seasoned homebuyer, the real estate world can be filled with confusing terminology and jargon. That's why we've created a comprehensive list of the top 30 real estate glossary terms that you should know before diving into the homebuying process.

Appraisal - A professional assessment of a property's value based on various factors like location, condition, and comparable properties in the area.

Closing Costs - The fees and expenses associated with purchasing a property, including title fees, loan origination fees, and prepaid expenses like property taxes and homeowners insurance.

Contingency - A condition in a purchase contract that must be satisfied before the transaction can be completed.

Deed - A legal document that transfers ownership of a property from the seller to the buyer.

Down Payment - The upfront payment made by a buyer when purchasing a property. Typically a percentage of the purchase price.

Equity - The value of the property minus the outstanding mortgage debt.

Home Inspection - A comprehensive examination of a property's condition conducted by a licensed inspector.

Homeowners Association (HOA) - A governing body responsible for maintaining common areas and enforcing neighborhood rules and regulations.

Interest Rate - The cost of borrowing money from a lender, expressed as a percentage of the loan amount.

Listing Agreement - A contract between a real estate agent and a property owner that outlines the terms of the sale.

Listing Agent - The real estate agent responsible for marketing and selling a property.

Mortgage - A loan used to purchase a property, with the property itself serving as collateral for the loan.

Pre-Approval - The process of getting approved for a mortgage before shopping for a property.

Property Tax - A tax levied by local governments on the assessed value of a property.

Purchase Agreement - A legally binding contract outlining the terms of the sale between the buyer and seller.

Refinancing - The process of replacing an existing mortgage with a new one, often to take advantage of a better interest rate or loan terms.

Title - The legal document that establishes ownership of a property.

Title Insurance - Insurance that protects the buyer and lender from potential losses related to issues with the property title.

Underwriting - The process of assessing the risk associated with a mortgage loan.

Final-Walk-Through - The final inspection of a property before closing to ensure that it's in the agreed-upon condition.

Zoning - The process of dividing land into different use categories, such as residential, commercial, and industrial.

Agent Commission - The fee paid to a real estate agent for their services in selling a property.

Amortization - The process of paying off a mortgage loan over time, with each payment consisting of both principal and interest.

Bridge Loan - A short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one.

Cash-Out Refinance - The process of refinancing a mortgage for more than the amount owed, allowing the borrower to receive cash at closing.

Earnest Money - The money paid by a buyer to show their commitment to purchasing a property.

Home Warranty - A service contract that covers the cost of repairs or replacement for certain home systems and appliances.