Do real estate conversations ever feel like they’re in a foreign language? With terms like APS, NOF, CMA, and BRA constantly being thrown around, it’s no wonder many people just nod along, hoping it all makes sense eventually.
If that sounds familiar, you're not alone, and you’re in the right place. Every industry has its own jargon, and real estate is no different. This blog post breaks down the most common real estate terms in plain English so you can navigate your next transaction with clarity and confidence.
🏡 Homebuyer Terms You Should Know
1. Pre-qualification vs. Pre-approval
Pre-qualification is a quick estimate of how much you can afford—often done with online calculators.
Pre-approval goes deeper. It involves submitting documents like T4s, bank statements, and letters of employment, so a mortgage broker can determine how much you can borrow.
2. APS, Conditional Offer, and Firm Offer
APS stands for Agreement of Purchase and Sale, your formal offer to buy a home.
A conditional offer includes requirements, like financing approval or a home inspection.
A firm offer has no conditions. Once accepted, the deal is final.
3. Deposit vs. Down Payment
A deposit is money you submit with your offer to show you're serious.
The down payment is the portion of the home's price you pay upfront, with the rest covered by your mortgage.
4. Closing Costs
These are additional fees due on closing day, including legal fees, land transfer tax, and title insurance. Budget about 1.5% to 4% of the home's price.
5. Title Search and Title Insurance
A title search confirms the seller owns the home and that there are no liens.
Title insurance protects you from future legal issues related to the property's ownership.
6. Amendments
If details like the closing date or buyer/seller names need to change after an offer is accepted, an amendment is used, so long as both parties agree.
🏠 Common Terms for Home Sellers
1. Listing Agreement
This contract allows your real estate agent to sell your home. It outlines details like listing dates, price, and commission.
2. CMA (Comparative Market Analysis)
Your agent will research similar homes that have sold, are currently listed, or have expired to help you price your home accurately.
3. Staging
This is the process of preparing your home to appeal to buyers through decluttering, rearranging furniture, or even renting decor. First impressions matter!
4. Days on Market (DOM)
This shows how long a property has been listed. A long DOM can suggest a problem, like overpricing or condition issues.
5. Conditional Sale / Under Contract
These terms mean the seller has accepted an offer that still has conditions (e.g., financing or inspection). Once fulfilled, the deal becomes firm.
6. NOF (Notice of Fulfillment)
This is the official paperwork confirming all conditions in an offer have been met, meaning the house is officially sold.
🏘️ General Real Estate Terms Everyone Should Understand
1. MLS (Multiple Listing Service)
The MLS is the database that powers platforms like Realtor.ca. It’s where all active property listings are found.
2. Appraisal
An unbiased valuation of a property, often required by lenders to ensure the agreed price matches the home's value.
3. Home Inspection
A thorough check of the home’s structure and systems (roof, plumbing, electrical, etc.) to uncover any hidden problems before closing the deal.
4. Trust Account
A third-party account (usually held by the brokerage or lawyer) that safely holds money like deposits until the transaction is finalized.
5. Closing/Possession Date
This is the day the sale is completed. The buyer gets the keys, the seller gets paid, and the home officially changes hands.
Understanding real estate terms can take the confusion out of buying or selling a home. When you're confident in the language, the whole process feels much less intimidating. Partnering with a trusted realtor can help you navigate every step with ease.
If you’re thinking about buying, selling, or investing, or just have questions, don’t hesitate to reach out. And for more straightforward real estate tips, be sure to subscribe to the YouTube channel and check out the linked videos for deeper dives into these topics.
Now you’re ready to take on your next real estate move with confidence ... no jargon required, only Straight Talk on Real Estate.
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