A​

• Appraisal: An assessment of a property’s value by a licensed appraiser, often required by lenders to ensure the home is worth the loan amount.

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• As-Is Condition: A property being sold in its current state, with no repairs or improvements made by the seller.

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• Amortization: The process of paying off a loan in regular installments over time, with each payment covering interest and principal.

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B​

• Broker: A licensed real estate professional who can manage their own business and employ other agents.

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• Buyer’s Agent: A real estate professional representing the buyer’s interests in a transaction.

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• Bridge Loan: A short-term loan used to bridge the gap between buying a new home and selling your current one.

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C​

• Closing: The final step in a real estate transaction when the title is transferred, and the buyer takes ownership.

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• Closing Costs: Fees and expenses paid at the closing, including lender fees, title insurance, and taxes.

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• Comparative Market Analysis (CMA): A report prepared by a real estate agent to estimate a property’s value based on recent sales of similar homes.

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• Contingency: A condition in a contract that must be met for the deal to proceed (e.g., inspection, financing).

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D

• Deed: A legal document that transfers ownership of property from one party to another.

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• Down Payment: The portion of the purchase price paid upfront, typically ranging from 3% to 20%.

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• Dual Agency: When a single agent represents both the buyer and seller in the same transaction.

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E

• Earnest Money Deposit: A deposit made by the buyer to show serious intent to purchase a property, typically applied to the down payment or closing costs.

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• Equity: The difference between the market value of a property and the outstanding mortgage balance.

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• Escrow: A neutral third party that holds funds or documents until the conditions of a contract are met.

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F

• Fixed-Rate Mortgage: A mortgage with a consistent interest rate throughout the loan term.

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• Foreclosure: A legal process where the lender takes possession of a property due to nonpayment of the mortgage.

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• FSBO (For Sale By Owner): A property being sold directly by the owner without the use of a real estate agent.

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H

• Homeowners Association (HOA): An organization in a planned community or condominium that enforces rules and collects fees for maintenance and amenities.

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• Home Inspection: An evaluation of a property’s condition by a professional inspector, often a contingency in purchase contracts.

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I

• Interest Rate: The percentage charged by a lender for borrowing money, expressed as an annual percentage.

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• Investment Property: A property purchased to generate income or profit, not as a primary residence.

L

• Listing Agent: A real estate agent representing the seller in a transaction.

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• Loan-to-Value Ratio (LTV): A percentage expressing the ratio of a loan amount to the property’s appraised value or purchase price.

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M

• Multiple Listing Service (MLS): A database where real estate agents list properties for sale and share information with other agents.

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• Mortgage: A loan used to purchase a property, with the property serving as collateral.

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O

• Offer: A formal proposal to purchase a property, including terms and price.

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• Open House: A scheduled time when a property for sale is open to potential buyers without an appointment.
   

P

• Pre-Approval: A lender’s conditional agreement to provide a mortgage up to a specific amount based on a borrower’s financial situation.

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• Principal: The original loan amount or the remaining balance of a loan, not including interest.

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• Private Mortgage Insurance (PMI): Insurance required by lenders for loans with less than a 20% down payment, protecting the lender in case of default.

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R

• Real Estate Owned (REO): A property owned by a lender after an unsuccessful foreclosure auction.

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• Refinance: The process of replacing an existing mortgage with a new one, often to obtain better terms.

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• Right of First Refusal: The right of a party to match an offer before the seller accepts another buyer’s offer.

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S

• Short Sale: A sale where the property sells for less than the outstanding mortgage balance, requiring lender approval.

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• Survey: A professional assessment of a property’s boundaries and structures.

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T

• Title: Legal ownership of a property, documented by a deed.

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• Title Insurance: Insurance that protects against financial loss due to title defects or disputes.

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• Transfer Tax: A tax imposed on the transfer of property ownership, often paid at closing.

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Z

• Zoning: Laws that regulate land use and property development within a specific area.