Real Estate "Lingo" from A-Z
Updated: Dec 6, 2019
Understanding the real estate world can be a constant challenge, Luckily, I’m a generous person and I’m happy to give you the meaning of some basic terms so that you can impress your friends during your next night out. Just try to use these terms before enjoying some adult beverages, as slurring your words may hinder the effectiveness. Here is a list of some of the most common real estate terms for each and every (okay, most of them) letter of the alphabet. I know, it’s a little bit like school and really, that is very true. As a Realtor it’s important for me to stay up-to-date and continually educate myself on all aspects of the industry including changes to anything related to the buying or selling of property.
Accrued Interest The amount of unpaid interest that has collected since the late payment date.
Agreement of Purchase and Sale This is the written contract outlining the terms and conditions that the purchaser and vendor have agreed upon as a contract to buy property.
Appraisal VS. Market Evaluation An appraisal is what an appraiser thinks your property is worth and what it may be listed for. A market evaluation is the value of what your property could sell for under normal conditions based on the sales of similar comparable homes in a certain time-frame.
Balance Due on Completion In order to complete the purchase, this is the amount of money the purchaser has to pay the vendor after all adjustments have been completed.
Buydown A sum of money in the form of a payment from any source that causes the lender to drop the interest rate during the mortgage term.
Closed Mortgage A mortgage that does not provide options for speeding up the repayment term through bulk payments or an increase in the payment frequency.
Conditional Offer This is a mutually agreed upon condition of sale between the buyer and seller. There may be a set of conditions that must be met by a specified time frame.