Home-Buying Lingo You Should Know

Real Estate Broker/Owner with Clark Properties 603683

If you are a first time home buyer, or even a repeat buyer, you quickly realize that real estate has a language all its own. Understanding some of the lingo can help you navigate the process a little easier. By learning a few critical terms, you will be in a better position to ask the right questions and make the best decisions.

Buyer’s Market – A real estate climate where the amount of listings outnumber qualified buyers.

Seller’s Market – A real estate climate when there are very few desirable properties listed for sale.

• Contingencies – Specific conditions included in offer to protect the buyer against unexpected situations, such as inspection, loan approval and appraisal value.

• Earnest Money – Money deposited when the offer is accepted. Subject to any contingencies, this money protects the seller from a buyer who simply changes her mind.

• Escrow Agent – A neutral 3rd party who manages the paperwork in a state where attorneys are not used to conclude the contract.

• Closing Costs – Fees which must be paid by both buyers to conclude the sale.

Conforming Loan – A conforming loan is a loan limit by which the loan can be sold on the secondary market; a jumbo loan is one which is higher than this limit.

PMI – PMI, private mortgage insurance is a fee paid by the borrower of a loan that they obtained with less than a 20% down payment.

These are just a few of the common terms used in real estate.

If you are involved in a real estate transaction, learning a bit of the common lingo will help you understand the process better and make your home sale or purchase a smooth one.


Clark Properties Real Estate Blog

Comments (4)

Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Some good basics for people to know who are just getting into the real estate realm. Proud of you and your enthusiasm.

Oct 17, 2019 07:54 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Laura, we use many words that are familiar to US, but the public has no idea.   Great post.

Oct 23, 2019 08:55 AM