Appraised value: An estimate of the value placed on a property or piece of real estate by a qualified appraiser.
Assessed value: The value of a property or piece of real estate used for taxation purposes.
Closing: The final step in a real estate transaction when the property is officially transferred to the buyer.
Closing costs: Fees that must be paid by either the buyer or seller during a property’s closing. These costs can either be lawyer fees, recording costs, mortgage application fees, appraisal fees and/or transfer taxes.
Contingency: Certain conditions that must be met before a home contract becomes official. A contract may be contingent until the buyer obtains an acceptable home inspection report.
Curb Appeal: The charm a home or business has to someone looking at its exterior from the “curb.”
Escrow: A neutral party that holds the official deed during the closing process until the buyer pays the sale price in full.
Fair Market Value: The price of a property that a knowledgeable, willing buyer would pay to a seller in an unpressured situation.
Foreclosure: When a lender seizes a property, as collateral, that owner failed to maintain consistent payments on it.
FSBO (For Sale by Owner): Any home that is being sold without the use of a real estate agent.
Home inspection: An inspection of a home’s structural condition and electrical wiring that is usually done before a sale becomes official.
Home staging: Making a house appealing to the masses before it hits the market. This can be done by landscaping, painting or simply changing the décor or decluttering a home so it makes a good first impression to potential buyers.
Mortgage: A loan a lender gives to a home buyer that pledges the property as security if the debt is not paid.
Paying Points: A way of lowering your interest rate by paying more upfront to your lender.
Pre-qualification of a mortgage: When a lender estimates how much you can realistically spend on a home purchase.
Pre-approval of a mortgage: When a lender checks your credit and verifies, in writing, the exact loan amount you are eligible to receive.