Common real estate terms and definitions.

Thinking of selling your home? Don’t get lost in the real estate lingo, learn these common terms and definitions beforehand!

Offer - the amount of money an individual or company is willing to pay for your home, as well as the contingencies they have on the purchase

Contract - the legally binding document that will need to be signed by a Seller and Buyer in order for a sale to begin

Real Estate Agent - a person with a professional state license to assist with buying or selling real estate. It is common to have a real estate agent represent either the buyer or seller in a transaction. 

Home-Buying Company - a business that specializes in purchasing real estate. They usually purchase the home from you directly, without a real estate agent involved

Repairs - improvements to the house that may be requested by either an agent or a buyer. Most home-buying companies won’t require you to make repairs

Title company - a third-party business that coordinates the sale of the property. They reach out to all mortgage or lien holders for payoffs, make the closing statement, and generally ensure a smooth transaction. This is where you will meet (either in person or virtually) to sign documents for the sale of your home, and they will give you the money on closing day. 

Closing costs - the fees that are charged by the title company and state to sell your house. The common range is 2% to 5% of the home's purchase price and doesn’t include agent’s commission. Most home-buying companies will cover closing costs and don’t charge agent commission. 

Closing - the day your house is officially transferred and you get the money from the sale. This is usually within 21-28 days if you’re working with a home-buying company.