The world of real estate can be filled with complex terminology and jargon that may seem overwhelming to those who are not familiar with the industry. Whether you are a first-time home buyer or a seasoned investor, it is essential to understand the key terms used in real estate transactions. In this glossary, we will cover some of the most commonly used terms in home buying and selling.

• Appraisal: An assessment of a property’s value conducted by a qualified appraiser to determine its fair market value.
• Closing Costs: The fees and expenses incurred during the transfer of property ownership, including title insurance, attorney fees and taxes.
• Comparative Market Analysis (CMA): A report prepared by a real estate agent that analyzes recent sales of similar properties to determine a fair listing price for a home.
• Contingency: A condition that must be met before a real estate contract becomes legally binding. Common contingencies include financing, home inspections and appraisals.
• Equity: The difference between the market value of a property and the outstanding balance of any loans or mortgages on the property.
• Escrow: A neutral third-party account where funds and documents are held during a real estate transaction until all conditions are met.
• Fixed-Rate Mortgage: A mortgage loan with an interest rate that remains constant throughout the term of the loan.
• Home Inspection: A professional assessment of a property’s condition, including its structure, systems and components, to identify any potential issues or defects.
• Listing Agent: The real estate agent who represents the seller in a home sale and is responsible for marketing the property and negotiating offers.
• Multiple Listing Service (MLS): A database used by real estate agents to share property listings with other agents, allowing for increased exposure and cooperation in the market.
• Pre-Approval: A lender’s commitment to provide a mortgage loan based on a borrower’s financial information and creditworthiness.
• Title Insurance: Insurance that protects against any defects or claims on the title of a property, providing financial compensation in case of any unforeseen issues.
• Under Contract: The stage in a real estate transaction when the seller has accepted an offer from a buyer and the necessary contingencies are being fulfilled.
• Walk-Through: A final inspection of a property conducted by the buyer before the closing to ensure that the property is in the agreed-upon condition.
• Zoning: Regulations and restrictions imposed by local government authorities that control the use of land and buildings in a specific area.

Understanding these terms can empower home buyers and sellers to navigate the real estate process more confidently. However, it is important to note that this glossary provides a general overview and specific terms and practices may vary depending on the location and jurisdiction. Real estate professionals, such as agents and attorneys, can provide further guidance and clarification on any specific terms or questions that may arise during a transaction.