Talk Like a Pro: Real Estate Terms You Should Know

Let’s be honest—real estate sometimes feels like it has its own secret language. Between acronyms, contracts, and terms you’ve probably never used before, it can get overwhelming fast. But here’s the good news: once you know the basics, everything feels a lot less intimidating. So grab a coffee, and let’s break down some of the most common real estate terms you’ll hear whether you’re buying or selling.

Appraisal

This is an evaluation of a home’s value, done by a licensed appraiser. Lenders require it to make sure the loan amount lines up with the property’s actual worth. Think of it as a reality check, based on condition, location, and recent sales nearby.

Closing Costs

These are the fees and expenses you pay when the sale officially wraps up and the property changes hands. Closing costs often include attorney fees, title insurance, loan origination fees, and more. Basically, it’s the price tag of finalizing the deal.

Contingency

A contingency is like a safety net in the contract. It’s a condition that has to be met for the sale to move forward—like the home inspection, financing approval, or appraisal. If something falls through, contingencies give the buyer a way out without penalty.

Equity

Equity is the difference between what your home is worth and what you still owe on the mortgage. As you pay down your loan—or if your home’s value increases—your equity grows. It’s like your home’s built-in savings account.

Escrow

Escrow is a third party that holds money or documents until both buyer and seller meet all the conditions of the sale. It’s there to protect both sides and keep things fair until the deal is done.

Fixed-Rate Mortgage

This type of loan keeps the same interest rate for the life of the mortgage. Translation: your monthly payment won’t change, making it easier to budget without surprises.

Home Inspection

A home inspection is when a professional checks out the property to see if there are any issues—like leaks, roof problems, or electrical concerns. It’s not about passing or failing—it’s about knowing what you’re walking into.

MLS (Multiple Listing Service)

The MLS is a giant database agents use to list and search homes for sale. It’s how your agent can quickly find properties that fit your budget, location, and wish list.

Pre-Approval

Getting pre-approved means a lender has already looked at your financial info and decided how much they’re willing to lend you. It gives you a solid budget to work with and shows sellers you’re serious.

Title Insurance

This protects you (and your lender) against legal issues with the property’s ownership—things like liens, disputes, or boundary problems. It’s peace of mind that the home you bought is really yours.

Final thoughts 

Understanding these terms can take a lot of the stress out of the process and make you feel more confident at every step. Real estate doesn’t have to feel like a foreign language—you just need the right guide to walk you through it.

📲 Thinking about buying or selling? Let’s chat. I’ll help translate all the jargon, walk you through every step, and make the process simple, clear, and stress-free.