Real Estate Terminology

Here's a glossary of common real estate terms that'll help our clients at 57 Realty navigate their buying and selling journey with confidence. Remember, we're here to demystify the process. 

A

  • Appraisal: An expert estimate of a property's market value. It's like getting a price tag that lenders nod to before they agree to hand over the mortgage cash.
  • Asking Price: What the seller hopes to get for their property. Think of it as their opening offer to the world.

B

  • Buyer’s Agent: A real estate pro focused on the buyer's corner, helping you snag your dream spot.
  • Broker: A real estate heavyweight licensed to run their own firm. Brokers can work solo or have agents working under them.

C

  • Closing: The grand finale of the home buying process where the deal is sealed, and keys are passed over. High-five moment!
  • Contingency: A condition that must be met before a deal goes through. Think of it as a "but only if..." clause in your offer.

D

  • Deed: A document that officially transfers ownership of property from seller to buyer. It’s your “I own this” paper.
  • Down Payment: The chunk of change buyers pay upfront for their new home. It's a show of commitment to the lender.

E

  • Equity: The difference between your home's value and what you owe on it. It’s like your property’s piggy bank.
  • Escrow: A neutral third party holds onto all the important stuff (like money and the deed) until everyone fulfills their end of the bargain.

F

  • Fixed-Rate Mortgage: A mortgage with an interest rate that stays the same through the life of the loan. No surprises here!
  • Foreclosure: When a homeowner can't pay their mortgage, the lender takes back the property. It’s a tough spot to be in.

G

  • Gross Income: Your total income before taxes. Lenders use this to see if you can afford a mortgage.

H

  • Home Inspection: A thorough check-up of a property before buying. It’s like a physical exam for your future home.
  • Homeowners Association (HOA): A group that manages a residential community. They’re the neighborhood rule-keepers.

I

  • Interest: The cost of borrowing money for your mortgage. Think of it as the rental fee for the borrowed cash.

L

  • Listing: A property up for sale. It’s your menu of options for new homes.
  • Loan-to-Value Ratio (LTV): A comparison of your loan amount to the value of your home. Lenders use it to assess risk.

M

  • Mortgage: A loan specifically for buying property. It’s the magic wand that turns renters into homeowners.

P

  • Pre-approval: A lender’s initial thumbs-up, saying you’re likely good for a mortgage up to a certain amount. It’s your shopping budget.
  • Principal: The base amount of your loan, not counting interest. It’s the core of what you owe.

R

  • Real Estate Agent: Your guide through the buying or selling process. At 57 Realty, we're your dedicated navigators.
  • Refinancing: Replacing your existing mortgage with a new one, usually to get a better interest rate or terms.

S

  • Seller’s Agent: A real estate pro dedicated to the seller’s side, making sure they get the best deal possible.
  • Survey: A detailed map of your property’s boundaries. It’s like drawing the lines in the sand of what’s yours.

This glossary should help make the real estate process a bit more approachable. Remember, we at 57 Realty are always here to help decode any part of the buying or selling journey for you. Let's bring you home!