Home-Selling Glossary
Every term a seller is likely to hear, defined the way a friend would explain it. Guides link here whenever jargon first appears.
- Appraisal
- A professional, independent estimate of a home's value, usually ordered by the buyer's lender to confirm the property is worth the loan amount. If the appraisal comes in below the contract price, the deal often gets renegotiated. CMA vs. appraisal →
- As-is
- A sale in which the seller will not make repairs or offer credits for the property's condition. Selling as-is does not remove the seller's legal duty to disclose known defects — it only means the seller won't fix them. Traditional vs. as-is vs. cash offers →
- Closing costs
- The fees and charges paid at the end of a sale, beyond the price itself — title and escrow fees, transfer taxes, prorated property taxes, lender fees, and more. Both buyer and seller pay their own set, itemized on the settlement statement. Escrow and closing costs →
- CMA (comparative market analysis)
- An estimate of a home's likely sale price based on recent sales of similar nearby properties, adjusted for differences in size, condition, and features. Agents typically prepare a CMA when helping a seller set a list price. CMA vs. appraisal →
- Contingency
- A condition written into a purchase contract that must be met for the sale to close — commonly inspection, financing, and appraisal contingencies. If a contingency fails, the buyer can usually cancel and recover their earnest money. Contingencies explained →
- Disclosure
- The seller's written statement of known material facts and defects about the property, usually on a state-required form. Honest, complete disclosure protects sellers from the most common source of post-sale disputes. Seller disclosures →
- Earnest money
- A deposit the buyer puts into escrow after an offer is accepted to show they're serious — often somewhere around 1-3% of the price, though it varies. If the buyer backs out without a contractual reason, the seller may keep it. How to read an offer →
- Equity
- The portion of the home's value you actually own: the market value minus everything you owe on it. Equity, not the sale price, is what determines how much money you walk away with. Estimating your net proceeds →
- Escrow
- A neutral third party that holds money and documents while a sale is in progress, releasing them only when both sides have met the contract's conditions. In many states the escrow or title company also runs the closing itself. Escrow and closing costs →
- FSBO (for sale by owner)
- Selling your home without a listing agent, handling pricing, marketing, showings, and negotiation yourself. It saves the listing commission but puts the agent's entire workload on the seller. Agent vs. FSBO vs. discount broker →
- iBuyer
- A company that makes quick, largely automated cash offers on homes, charging a service fee and typically buying below full market value in exchange for speed and certainty. Always compare an iBuyer offer to your likely open-market net. Traditional vs. as-is vs. cash offers →
- Inspection contingency
- A contract condition giving the buyer a set period to inspect the home and either accept it, request repairs or credits, or cancel. It's the point in most deals where the price and terms get renegotiated. Contingencies explained →
- Lien
- A legal claim against the property for an unpaid debt — a mortgage, unpaid taxes, contractor bills, or court judgments. Liens generally must be paid off or resolved before clear title can transfer to the buyer.
- Listing agreement
- The contract between a seller and a real estate brokerage that sets the list price, the commission, the length of the listing, and each side's duties. Read it carefully — it governs what you owe the agent and when. How to choose an agent →
- Net proceeds
- The money a seller actually keeps after the sale: the price minus the mortgage payoff, commissions, closing costs, repairs, and any buyer credits. It's the number that matters most when comparing selling options. Estimating your net proceeds →
- Payoff amount
- The exact sum required to fully satisfy your mortgage on a specific date, including remaining principal, accrued interest, and any fees. It's usually a bit higher than the balance on your statement, so request an official payoff quote from your lender. Estimating your net proceeds →
- Rent-back
- An arrangement where the seller stays in the home for a period after closing, paying rent to the new owner. It's a useful bridge when your next home isn't ready, and its terms should be written into the contract. Moving out →
- Title
- The legal right of ownership in the property. Before closing, a title company searches public records for liens, errors, and competing claims, and title insurance protects against problems the search missed. What happens at closing →
- Under contract / pending
- The stage after a seller accepts an offer but before the sale closes. "Under contract" (or "contingent") usually means contingencies are still open; "pending" often means they've been cleared and the deal is just waiting to close. How to read an offer →
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