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Real Estate Glossary

Appraisal: An evaluation of a property's value conducted by a licensed appraiser. Buyer's Agent: A real estate agent who represents the interests of the buyer in a real estate transaction.

Closing Costs: Expenses incurred by the buyer and seller during the closing process, such as lender fees, title insurance, and attorney fees.

Condominium: A type of housing where individual units are owned, and common areas are shared by all residents.

Counteroffer: A response from the seller to the buyer's offer, proposing different terms or conditions.

Down Payment: The initial payment made by the buyer toward the purchase price of the property.

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

Fixed-Rate Mortgage: A mortgage loan with an interest rate that remains the same throughout the entire term.

Home Inspection: A thorough examination of a property's condition, conducted by a professional inspector, to identify any issues or defects.

Listing Agent: The real estate agent who represents the seller in a real estate transaction.

Mortgage: A loan obtained to finance the purchase of a property, typically repaid over a set period with interest.

Offer: A proposal made by a buyer to purchase a property, including price, terms, and conditions.

Pre-approval: A lender's assessment of a borrower's creditworthiness to determine the maximum loan amount they can obtain.

Principal: The original amount of money borrowed in a loan, excluding interest.

Property Tax: Taxes imposed by the government on the assessed value of a property, used to fund local services and infrastructure.

Real Estate Agent: A licensed professional who assists buyers and sellers in real estate transactions.

Refinancing: The process of replacing an existing mortgage with a new one, typically to obtain better loan terms or interest rates.

Seller's Market: A market condition where there are more buyers than available properties, resulting in increased competition and higher prices.

Title Insurance: Insurance that protects against any legal claims or disputes regarding ownership of a property.

Under Contract: A stage in a real estate transaction where the buyer and seller have reached mutual agreement on terms, but the sale is not yet finalized.

Upfront Costs: Expenses paid by the buyer at the beginning of the home-buying process, such as earnest money and inspection fees.

Walkthrough: A final inspection of the property by the buyer before closing to ensure that agreed-upon repairs or conditions have been met.

Zoning: Local government regulations that dictate how a property can be used, such as residential, commercial, or industrial purposes.

Multiple Listing Service (MLS): A database used by real estate agents to share property listings and cooperate with other agents.

Amortization: The gradual repayment of a mortgage loan through regular installments, consisting of both principal and interest.

Comparative Market Analysis (CMA): An analysis of similar recently sold properties to determine the fair market value of a property.

Escrow: A neutral third party that holds funds and documents during a real estate transaction until all conditions are met.

Homeowners Association (HOA): An organization that sets and enforces rules and regulations for a community or condominium complex.

Title Deed: A legal document that proves ownership of a property.

Open House: A scheduled period where a property is available for potential buyers to view without an appointment.

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