Glossary of Terms
Understanding real estate terms can make the process of buying or selling a home much less overwhelming. Whether you're reviewing a contract, talking with professionals, or browsing listings, you're likely to come across terms that aren't part of everyday language. This glossary is here to help you quickly find clear, simple definitions so you can feel more confident and informed every step of the way.
Appraisal: An evaluation of a property's value, typically performed by a licensed appraiser. The appraisal considers factors like the property's condition, location, and recent sales of similar properties.
Assessment: The valuation of a property for the purpose of determining property taxes. Local government assessors evaluate properties periodically to update their tax value.
Appreciation: The increase in a property's value over time due to market conditions, improvements, or other factors.
Balloon Mortgage: A type of loan that requires a large payment at the end of the loan term after smaller, regular payments. This payment is significantly larger than the earlier installments and is known as the "balloon" payment.
Broker: A licensed individual or firm that arranges transactions between buyers and sellers, typically earning a commission once the deal is complete. Brokers are responsible for bringing together the parties involved in a real estate transaction.
Buyer's Market: A market condition where there are more homes available for sale than there are buyers. This typically results in lower home prices and gives buyers more negotiation power.
Closing: The final step in a real estate transaction, where the buyer takes possession of the property, funds are transferred, and all legal documents are signed.
Condominium: A type of property ownership where individuals own a unit within a building or complex but share common areas, such as the hallways, pool, or gym, with other owners.