Real Estate Glossary: A-Z

Real Estate Glossary: A to Z

Real estate is full of terms and buzzwords that get thrown around like everyone already knows what they mean. Here's a plain-English glossary you can jump to anytime a term trips you up.

A

Amortization

The process of paying off a loan through regular, scheduled payments that cover both principal and interest over time — usually 15 or 30 years for a mortgage.

Appraisal

A licensed professional's independent estimate of a home's value, required by most lenders before they'll fund a mortgage.

"As-Is"

A listing term meaning the seller won't make repairs or concessions based on inspection findings. You can still negotiate — but expect more resistance.

B

Bridge Loan

Short-term financing that lets a seller buy their next home before their current one sells, using equity in the old home as collateral.

Buyer's Agent

The REALTOR® who represents your interests as the buyer — typically at no direct cost to you, since the fee is usually built into the transaction.

C

Closing Costs

Fees paid at closing beyond the purchase price — typically 2-5% for buyers, covering things like loan origination, title insurance, and recording fees.

Comparative Market Analysis (CMA)

A report comparing a home to recently sold, similar properties nearby, used to help set an accurate listing price or make a competitive offer.

Contingency

A condition that must be met for a contract to move forward — common ones include financing, inspection, and appraisal contingencies.

Curb Appeal

How a home looks from the street. It's the first impression buyers form before they ever walk in the door, and it genuinely affects offers.

D

Due Diligence

The buyer's period to investigate a property — inspections, reviewing disclosures, researching flood zones — before contingencies are removed.

Down Payment

The portion of the purchase price paid upfront, not financed. VA loans can allow $0 down for eligible buyers; conventional loans often start around 3-20%.

Dual Agency

When one agent represents both the buyer and seller in the same transaction. Virginia allows it with informed consent, but it's worth understanding before you agree to it.

E

Earnest Money

A good-faith deposit made when you submit an offer, showing you're serious. It's credited toward your purchase at closing if the deal goes through.

Easement

A legal right for someone else (a utility company, neighbor, etc.) to use part of your property for a specific purpose, even though you own it.

Escrow

A neutral third party that holds funds and documents during a transaction until all conditions of the contract are satisfied.

F

FHA Loan

A mortgage insured by the Federal Housing Administration, popular with first-time buyers for its lower down payment and credit score requirements.

Fixer-Upper

A home that needs work — anything from cosmetic updates to major systems — usually priced below comparable move-in-ready homes to reflect it.

For Sale By Owner (FSBO)

A home being sold without a listing agent. It can mean more room to negotiate, but also more risk without professional guidance on your side.

G

Good Faith Estimate

An older term for the upfront breakdown of estimated loan costs a lender provides — largely replaced today by the Loan Estimate form.

Gross Living Area

The total finished, heated square footage of a home above grade — the number appraisers and agents use to compare homes apples-to-apples.

H

HOA (Homeowners Association)

An organization that manages shared community amenities and enforces rules in some neighborhoods, funded by mandatory dues. Always review the HOA docs before buying in one.

Home Inspection

A professional's top-to-bottom evaluation of a home's condition — roof, systems, structure — done during the due diligence period, before you're locked in.

Hard Money Loan

A short-term loan from a private lender, usually asset-based rather than credit-based, common for investors flipping properties fast.

I

Inspection Contingency

A contract clause letting the buyer back out or renegotiate based on what the home inspection turns up, within an agreed timeframe.

Interest Rate Lock

An agreement with your lender that freezes your interest rate for a set period, protecting you from rate increases while your loan closes.

J

Joint Tenancy

A way for two or more people to co-own property with equal shares and automatic right of survivorship if one owner passes away.

Jumbo Loan

A mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac, usually requiring stronger credit and a larger down payment.

K

Kick-Out Clause

A provision letting a seller keep marketing their home even after accepting a contingent offer, and 'kick out' that buyer if a better offer comes in and they can't remove their contingency in time.

L

Lien

A legal claim against a property, often for unpaid debt (like a mortgage or contractor bill), that must typically be resolved before the property can sell.

Listing Agent

The REALTOR® representing the seller, responsible for pricing, marketing, and negotiating on the seller's behalf.

Loan-to-Value (LTV) Ratio

The loan amount compared to the home's appraised value, expressed as a percentage — a key number lenders use to assess risk.

M

MLS (Multiple Listing Service)

The database REALTORS® use to list and search properties for sale — REIN is the regional MLS covering Hampton Roads.

Mortgage Pre-Approval

A lender's conditional commitment to loan you a specific amount, based on a real review of your financials — much stronger than a pre-qualification.

Motivated Seller

A seller under some pressure to sell quickly, which can sometimes mean more room to negotiate on price or terms.

N

Net Proceeds

What a seller actually walks away with after paying off the mortgage, agent commissions, closing costs, and any other fees.

Novation

A contract change that substitutes a new party or term in place of the original agreement, with all parties' consent.

O

Offer

A buyer's formal, written proposal to purchase a home — price, terms, contingencies, and timeline all included.

Open House

A scheduled window when a listed home is open for the public to walk through without an appointment.

Origination Fee

A fee a lender charges to process a new loan, usually a percentage of the loan amount, included in your closing costs.

P

PMI (Private Mortgage Insurance)

Insurance required on most conventional loans with less than 20% down, protecting the lender (not you) if you default — it can usually be removed once you hit 20% equity.

Pre-Qualification

An informal, unverified estimate of what you might be able to borrow, based on self-reported numbers — a good starting point, but not as strong as pre-approval.

Pocket Listing

A property marketed privately rather than on the MLS. It limits buyer competition, which usually isn't in the seller's best interest.

Q

Quitclaim Deed

A deed that transfers whatever interest someone has in a property without guaranteeing they actually have clear title — common between family members, rare in traditional sales.

R

Ratified Contract

A purchase agreement that's been signed by both buyer and seller — at that point, the deal is officially under contract.

Real Property

Land and anything permanently attached to it, including the home itself — as opposed to personal property, which can be removed.

Rate Lock

See Interest Rate Lock — freezing your mortgage rate for an agreed period while your loan processes.

S

Seller Concessions

Costs a seller agrees to cover for the buyer — often closing costs or repair credits — usually negotiated as part of the offer.

Survey

A professional measurement of a property's exact boundaries, useful for confirming fence lines, easements, and lot size before you buy.

Short Sale

A sale where the home sells for less than what's owed on the mortgage, requiring lender approval — these can move slowly and unpredictably.

T

Title Insurance

A one-time-purchase policy that protects you and your lender against future claims or disputes over property ownership.

Turnkey

A home that's fully move-in ready, with no immediate repairs or updates needed.

Title Search

A review of public records to confirm a seller has clear legal ownership and to uncover any liens or claims before closing.

U

Underwriting

The lender's in-depth review of your finances and the property to make the final call on approving your mortgage.

Under Contract

The status of a home once a ratified contract is in place — it's no longer actively for sale, though some contingencies may still be pending.

V

VA Loan

A mortgage backed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and some surviving spouses — often $0 down with no PMI.

Variance

A local government's approval to deviate from standard zoning rules for a specific property, usually for a specific structural or use reason.

W

Walkthrough

The buyer's final inspection of the home, typically just before closing, to confirm its condition matches what was agreed and any repairs were completed.

Wraparound Mortgage

A form of seller financing where a new loan 'wraps around' the seller's existing mortgage — uncommon, but occasionally used in creative deals.

X

Xeriscaping

Low-water, drought-tolerant landscaping. Not common in humid Hampton Roads, but you'll occasionally see it mentioned in listings focused on low-maintenance yards.

Y

Yield Spread Premium

A payment a lender historically made to a broker for placing a borrower in a higher interest rate than they qualified for — heavily regulated today, but useful to know the term.

Z

Zoning

Local rules governing how a property can be used — residential, commercial, mixed-use, etc. — and what can be built on it.