Important terms you should know.
Asking price
The price that the seller has agreed to list their property for. The asking price is different from the selling price, which is the final price that has been agreed upon by the buyer and seller.
Balanced market
There is an equal balance of buyers and sellers in the market, which means reasonable offers are often accepted by sellers, and homes sell within a reasonable amount of time and prices remain stable.
Bridge financing
A short-term loan designed to “bridge” the gap for homebuyers who have purchased their new home before selling their existing home. This type of financing is common in a seller's market, allowing homebuyers to purchase without having to sell first.
Buyer's market
There are more homes on the market than there are buyers, giving the limited number of buyers more choice and greater negotiating power. Homes may stay on the market longer, and prices can be stable or dropping.
Chattels
Unattached items in the home that can be removed without doing any damage to the property, such as curtains, but not the curtain rods since they are physically attached to the home. Chattels are usually not included with the home purchase, unless specified in the Agreement of Purchase and Sale.
Closing
This is the final step in the home selling process. Once all offer conditions outlined in the Agreement of Purchase and Sale have been met, at the end of the closing period, ownership of the property is transferred to the buyer and the keys are exchanged on the closing date outlined in the offer. Dates vary by location. Be sure to ask your real estate agent.
Contingencies
When the sale of the home hinges on predetermined conditions, such as “conditional on financing” or “conditional on a satisfactory home inspection.” If the conditions are not met, the buyer can back out of the deal.
Counter offer
When the original offer to purchase a home is rejected by the seller, the seller can counteroffer with adjustments, usually to the price or terms of the purchase, such as the closing date.
Curb appeal
The appeal of a home when viewed from the curb. Curb appeal includes the home's exterior, front yard and anything else that's visible from the street.
Current market assessment (CMA)
This is provided by your real estate agent during the listing process and assists with determining the asking price of the home. The assessment uses current housing market information such as supply and demand, seasonality, home information like location, age, square footage and more.
Fixtures
Items that are physically attached to the home and require tools to remove. Fixtures are included as part of the purchase. Examples of fixtures include ceiling lights, cabinet hardware and appliances. If the seller plans to take any fixtures with them when they move, either remove them prior to listing the home, or be sure to specify the fixtures in the Agreement of Purchase and Sale.
FSBO
Acronym for “For Sale By Owner,” meaning the seller hasn't retained the services of a licensed real estate agent or broker to assist with the sale of their home.
Home value estimator
A home value estimator is a tool, typically found online, that helps home sellers estimate the value of their property. The result is an estimate and different from a detailed CMA provided by a real estate agent.
MLS
The Multiple Listing Service, commonly referred to as MLS, is a database established by cooperating real estate brokers to provide data about properties for sale.
Offer
An offer is a legal agreement to purchase a home. An offer can be conditional on a number of factors, commonly conditional on financing and a home inspection. If the conditions are not met, the buyer can cancel their offer.
Seller's market
In a seller's market, there are more buyers than there are homes for sale. With fewer homes on the market and more buyers, homes sell quickly in a seller's market. Prices of homes are likely to increase, and there are more likely to be multiple offers on a home. Multiple offers give the seller negotiating power and conditional offers may be rejected.
Staging
Preparing a home for sale to appeal to a wide range of homebuyers. The staging process often includes decluttering, depersonalizing, deep-cleaning and minor updates such as painting and rearranging furniture.
Each office independently owned and operated. The information contained in this guide is for informational and educational purposes only, and is not legal, business, or real estate advice. Even though we have taken every reasonable effort to attempt to make sure that the information presented is accurate, up-to-date, and useful, we can not guarantee that it is complete, correct, or current. This guide is not a substitute for professional advice. Real estate laws, regulations, and practices may vary from market to market. Consult with local professionals for specific advice.