Real Estate Terms Explained Simply

Real estate comes with a lot of jargon. If you’re buying or selling a home, understanding these common terms can help you feel confident and avoid confusion. Here’s a plain-English guide to the most important real estate terms.

🏠 Listing

A home that’s officially for sale.

💰 Asking Price

The price the seller wants for the home (not always the final sale price).

📝 Offer

The price and terms a buyer proposes to purchase the home.

🤝 Counteroffer

The seller’s response to an offer with changes to price or terms.

🔍 Home Inspection

A professional check of the home’s condition, including structure, roof, plumbing, and electrical systems.

🧾 Appraisal

An independent estimate of the home’s market value, required by lenders.

💵 Down Payment

The upfront cash you pay toward the home purchase.

🏦 Mortgage

A loan used to buy a home, paid back over time with interest.

📄 Pre-Approval

A lender’s written estimate of how much they’re willing to lend you.

📊 Closing Costs

Fees paid at closing, including lender, title, insurance, and tax-related costs.

🔑 Closing

The final step where paperwork is signed and ownership officially transfers.

🏘️ HOA (Homeowners Association)

An organization that manages shared areas and enforces community rules. Members pay regular fees.

🛠️ Contingency

A condition that must be met for the sale to proceed (e.g., inspection or financing).

📉 Earnest Money

A deposit showing the buyer’s serious intent to purchase the home.

🧾 Title

Legal proof that shows who owns the property.

🛡️ Title Insurance

Protection against ownership disputes or errors in public records.

📅 Days on Market (DOM)

How long a property has been listed before selling.

🏷️ Sale-to-List Ratio

The percentage of the asking price that the home actually sells for.

🧠 Final Tip

Understanding these terms helps you:

• Communicate confidently

• Make informed decisions

• Avoid costly misunderstandings