\u201cI find myself jumping in to explain terms quite a bit,\u201d Sisson says. \u201cEven the simple term \u2018closing\u2019 can mean different things depending on who you\u2019re talking to and when.\u201d<\/p>\n\n\n\n\n\n
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\n <\/div>\n \n Hire a Top Agent Who Speaks Your Language?<\/h3>\n
It takes just two minutes to match you with the best real estate agents near your home. Our Agent Match platform analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.<\/p>\n \n
Real estate terms you should know<\/h2>\n
Here\u2019s a curated glossary of must-know terms that will help you better understand the home-selling process \u2014 from pricing and listing to negotiation and closing. Click on any real estate term to learn more.<\/p>\n
Home pricing and market terms<\/h3>\n\n- List price<\/a>:<\/strong> The price your home is listed for on the market. It\u2019s a starting point, not a guarantee of your final sale price.<\/li>\n
- Comps<\/a>: <\/strong>Recently sold homes similar (comparable) to yours, used to help price your home accurately.<\/li>\n
- Comparative Market Analysis (CMA)<\/a>: <\/strong>A detailed report prepared by your agent to analyze comps and estimate your home\u2019s market value.<\/li>\n
- Sale-to-list ratio<\/a>: <\/strong>A percentage that compares the final sale price to the original list price. Over 100% means the home sold above asking.<\/li>\n
- Zestimate<\/a>: <\/strong>Zillow\u2019s automated home value estimate. These and other free estimators<\/a> can be helpful, but they\u2019re not a substitute for a CMA or an appraisal.<\/li>\n
- Equity<\/a>: <\/strong>The portion of your home\u2019s value you truly own, calculated as market value<\/a> minus what you still owe on your mortgage.<\/li>\n<\/ul>\n
Listing, showing, and exposure terms<\/h3>\n\n- Listing agreement<\/a>: <\/strong>A contract between a homeowner (seller) and a real estate agent, authorizing the agent to market and sell the property.<\/li>\n
- Multiple Listing Service (MLS)<\/a>:<\/strong> A database used by agents to share property listings with other agents and buyers.<\/li>\n
- iBuyer<\/a>:<\/strong> A company that uses technology to make near-instant cash offers<\/a> on homes, usually in exchange for convenience and speed at a cost.<\/li>\n
- Fixture<\/a>: <\/strong>An item that\u2019s permanently attached to the home (like light fixtures or built-in shelving) and typically included in the sale.<\/li>\n
- As-is sale<\/a>: <\/strong>This listing term means the seller is selling the home in its current condition, without making any repairs or improvements.<\/li>\n<\/ul>\n
Financing and buyer qualification terms<\/h3>\n\n- Pre-approved vs. prequalified<\/a>: <\/strong>Prequalified means a lender has made a preliminary assessment; pre-approved means the buyer has submitted documents and been more thoroughly vetted.<\/li>\n
- Loan-to-value ratio (LTV)<\/a>: <\/strong>A percentage comparing the loan amount to the home\u2019s appraised value. A lower LTV is better for buyers.<\/li>\n
- Debt-to-income ratio (DTI)<\/a>: <\/strong>A percentage showing how much of a buyer\u2019s income goes toward monthly debts, an important factor in loan approval.<\/li>\n
- Proof of funds<\/a>: <\/strong>A document showing the buyer has the cash needed for their down payment or a full-cash purchase.<\/li>\n
- Financing contingency<\/a>: <\/strong>A clause that lets the buyer back out if they can\u2019t secure financing.<\/li>\n<\/ul>\n
Offer, negotiation, and contract terms<\/h3>\n\n- Purchase agreement<\/a>: <\/strong>The legal contract between buyer and seller that outlines the terms of the home sale.<\/li>\n
- Counteroffer<\/a>: <\/strong>When the seller or buyer responds to an offer with a different set of terms, effectively declining the original offer and proposing a new one.<\/li>\n
- Earnest money<\/a>: <\/strong>A deposit from the buyer showing good faith, typically 1%\u20133% of the purchase price, held by the escrow company.<\/li>\n
- Escalation clause<\/a>: <\/strong>A clause in an offer stating that the buyer will outbid competing offers up to a certain amount.<\/li>\n
- Appraisal gap<\/a>: <\/strong>The difference between the purchase price and the appraised value of the home, which the buyer may need to cover.<\/li>\n
- Seller concessions<\/a>: <\/strong>Costs a seller agrees to pay on the buyer\u2019s behalf, such as closing fees or repairs.<\/li>\n
- Seller credit<\/a>: <\/strong>A financial credit applied at closing that helps the buyer offset costs \u2014 often negotiated after inspections.<\/li>\n
- Net sheet<\/a>: <\/strong>A financial document that estimates the seller’s proceeds<\/a> from a home sale after deducting all associated costs<\/li>\n<\/ul>\n
Sisson explains that there\u2019s one particular word that\u2019s not on this initial set, the word \u201cdeal.\u201d<\/p>\n
\u201cWhen agents or people in the industry refer to a transaction as a \u2018deal,\u2019 it just doesn\u2019t sound professional to me,\u201d he explains. \u201cIn my opinion, it cheapens the process. This is a major event for our clients, and calling it a \u2018deal\u2019 makes it sound small, almost dismissive.\u201d<\/p>\n
Contingency terms to watch for<\/h3>\n\n- Contingent<\/a>:<\/strong> A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.<\/li>\n
- Contingency<\/a>: <\/strong>A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.<\/li>\n
- Inspection contingency<\/a>:<\/strong> Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.<\/li>\n
- Appraisal contingency<\/a>: <\/strong>Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.<\/li>\n
- Home sale contingency<\/a>:<\/strong> Gives the buyer time to sell their current home before finalizing the purchase.<\/li>\n
- Due diligence<\/a>: <\/strong>A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.<\/li>\n<\/ul>\n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Listing, showing, and exposure terms<\/h3>\n\n- Listing agreement<\/a>: <\/strong>A contract between a homeowner (seller) and a real estate agent, authorizing the agent to market and sell the property.<\/li>\n
- Multiple Listing Service (MLS)<\/a>:<\/strong> A database used by agents to share property listings with other agents and buyers.<\/li>\n
- iBuyer<\/a>:<\/strong> A company that uses technology to make near-instant cash offers<\/a> on homes, usually in exchange for convenience and speed at a cost.<\/li>\n
- Fixture<\/a>: <\/strong>An item that\u2019s permanently attached to the home (like light fixtures or built-in shelving) and typically included in the sale.<\/li>\n
- As-is sale<\/a>: <\/strong>This listing term means the seller is selling the home in its current condition, without making any repairs or improvements.<\/li>\n<\/ul>\n
Financing and buyer qualification terms<\/h3>\n\n- Pre-approved vs. prequalified<\/a>: <\/strong>Prequalified means a lender has made a preliminary assessment; pre-approved means the buyer has submitted documents and been more thoroughly vetted.<\/li>\n
- Loan-to-value ratio (LTV)<\/a>: <\/strong>A percentage comparing the loan amount to the home\u2019s appraised value. A lower LTV is better for buyers.<\/li>\n
- Debt-to-income ratio (DTI)<\/a>: <\/strong>A percentage showing how much of a buyer\u2019s income goes toward monthly debts, an important factor in loan approval.<\/li>\n
- Proof of funds<\/a>: <\/strong>A document showing the buyer has the cash needed for their down payment or a full-cash purchase.<\/li>\n
- Financing contingency<\/a>: <\/strong>A clause that lets the buyer back out if they can\u2019t secure financing.<\/li>\n<\/ul>\n
Offer, negotiation, and contract terms<\/h3>\n\n- Purchase agreement<\/a>: <\/strong>The legal contract between buyer and seller that outlines the terms of the home sale.<\/li>\n
- Counteroffer<\/a>: <\/strong>When the seller or buyer responds to an offer with a different set of terms, effectively declining the original offer and proposing a new one.<\/li>\n
- Earnest money<\/a>: <\/strong>A deposit from the buyer showing good faith, typically 1%\u20133% of the purchase price, held by the escrow company.<\/li>\n
- Escalation clause<\/a>: <\/strong>A clause in an offer stating that the buyer will outbid competing offers up to a certain amount.<\/li>\n
- Appraisal gap<\/a>: <\/strong>The difference between the purchase price and the appraised value of the home, which the buyer may need to cover.<\/li>\n
- Seller concessions<\/a>: <\/strong>Costs a seller agrees to pay on the buyer\u2019s behalf, such as closing fees or repairs.<\/li>\n
- Seller credit<\/a>: <\/strong>A financial credit applied at closing that helps the buyer offset costs \u2014 often negotiated after inspections.<\/li>\n
- Net sheet<\/a>: <\/strong>A financial document that estimates the seller’s proceeds<\/a> from a home sale after deducting all associated costs<\/li>\n<\/ul>\n
Sisson explains that there\u2019s one particular word that\u2019s not on this initial set, the word \u201cdeal.\u201d<\/p>\n
\u201cWhen agents or people in the industry refer to a transaction as a \u2018deal,\u2019 it just doesn\u2019t sound professional to me,\u201d he explains. \u201cIn my opinion, it cheapens the process. This is a major event for our clients, and calling it a \u2018deal\u2019 makes it sound small, almost dismissive.\u201d<\/p>\n
Contingency terms to watch for<\/h3>\n\n- Contingent<\/a>:<\/strong> A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.<\/li>\n
- Contingency<\/a>: <\/strong>A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.<\/li>\n
- Inspection contingency<\/a>:<\/strong> Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.<\/li>\n
- Appraisal contingency<\/a>: <\/strong>Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.<\/li>\n
- Home sale contingency<\/a>:<\/strong> Gives the buyer time to sell their current home before finalizing the purchase.<\/li>\n
- Due diligence<\/a>: <\/strong>A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.<\/li>\n<\/ul>\n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Financing and buyer qualification terms<\/h3>\n\n- Pre-approved vs. prequalified<\/a>: <\/strong>Prequalified means a lender has made a preliminary assessment; pre-approved means the buyer has submitted documents and been more thoroughly vetted.<\/li>\n
- Loan-to-value ratio (LTV)<\/a>: <\/strong>A percentage comparing the loan amount to the home\u2019s appraised value. A lower LTV is better for buyers.<\/li>\n
- Debt-to-income ratio (DTI)<\/a>: <\/strong>A percentage showing how much of a buyer\u2019s income goes toward monthly debts, an important factor in loan approval.<\/li>\n
- Proof of funds<\/a>: <\/strong>A document showing the buyer has the cash needed for their down payment or a full-cash purchase.<\/li>\n
- Financing contingency<\/a>: <\/strong>A clause that lets the buyer back out if they can\u2019t secure financing.<\/li>\n<\/ul>\n
Offer, negotiation, and contract terms<\/h3>\n\n- Purchase agreement<\/a>: <\/strong>The legal contract between buyer and seller that outlines the terms of the home sale.<\/li>\n
- Counteroffer<\/a>: <\/strong>When the seller or buyer responds to an offer with a different set of terms, effectively declining the original offer and proposing a new one.<\/li>\n
- Earnest money<\/a>: <\/strong>A deposit from the buyer showing good faith, typically 1%\u20133% of the purchase price, held by the escrow company.<\/li>\n
- Escalation clause<\/a>: <\/strong>A clause in an offer stating that the buyer will outbid competing offers up to a certain amount.<\/li>\n
- Appraisal gap<\/a>: <\/strong>The difference between the purchase price and the appraised value of the home, which the buyer may need to cover.<\/li>\n
- Seller concessions<\/a>: <\/strong>Costs a seller agrees to pay on the buyer\u2019s behalf, such as closing fees or repairs.<\/li>\n
- Seller credit<\/a>: <\/strong>A financial credit applied at closing that helps the buyer offset costs \u2014 often negotiated after inspections.<\/li>\n
- Net sheet<\/a>: <\/strong>A financial document that estimates the seller’s proceeds<\/a> from a home sale after deducting all associated costs<\/li>\n<\/ul>\n
Sisson explains that there\u2019s one particular word that\u2019s not on this initial set, the word \u201cdeal.\u201d<\/p>\n
\u201cWhen agents or people in the industry refer to a transaction as a \u2018deal,\u2019 it just doesn\u2019t sound professional to me,\u201d he explains. \u201cIn my opinion, it cheapens the process. This is a major event for our clients, and calling it a \u2018deal\u2019 makes it sound small, almost dismissive.\u201d<\/p>\n
Contingency terms to watch for<\/h3>\n\n- Contingent<\/a>:<\/strong> A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.<\/li>\n
- Contingency<\/a>: <\/strong>A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.<\/li>\n
- Inspection contingency<\/a>:<\/strong> Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.<\/li>\n
- Appraisal contingency<\/a>: <\/strong>Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.<\/li>\n
- Home sale contingency<\/a>:<\/strong> Gives the buyer time to sell their current home before finalizing the purchase.<\/li>\n
- Due diligence<\/a>: <\/strong>A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.<\/li>\n<\/ul>\n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Offer, negotiation, and contract terms<\/h3>\n\n- Purchase agreement<\/a>: <\/strong>The legal contract between buyer and seller that outlines the terms of the home sale.<\/li>\n
- Counteroffer<\/a>: <\/strong>When the seller or buyer responds to an offer with a different set of terms, effectively declining the original offer and proposing a new one.<\/li>\n
- Earnest money<\/a>: <\/strong>A deposit from the buyer showing good faith, typically 1%\u20133% of the purchase price, held by the escrow company.<\/li>\n
- Escalation clause<\/a>: <\/strong>A clause in an offer stating that the buyer will outbid competing offers up to a certain amount.<\/li>\n
- Appraisal gap<\/a>: <\/strong>The difference between the purchase price and the appraised value of the home, which the buyer may need to cover.<\/li>\n
- Seller concessions<\/a>: <\/strong>Costs a seller agrees to pay on the buyer\u2019s behalf, such as closing fees or repairs.<\/li>\n
- Seller credit<\/a>: <\/strong>A financial credit applied at closing that helps the buyer offset costs \u2014 often negotiated after inspections.<\/li>\n
- Net sheet<\/a>: <\/strong>A financial document that estimates the seller’s proceeds<\/a> from a home sale after deducting all associated costs<\/li>\n<\/ul>\n
Sisson explains that there\u2019s one particular word that\u2019s not on this initial set, the word \u201cdeal.\u201d<\/p>\n
\u201cWhen agents or people in the industry refer to a transaction as a \u2018deal,\u2019 it just doesn\u2019t sound professional to me,\u201d he explains. \u201cIn my opinion, it cheapens the process. This is a major event for our clients, and calling it a \u2018deal\u2019 makes it sound small, almost dismissive.\u201d<\/p>\n
Contingency terms to watch for<\/h3>\n\n- Contingent<\/a>:<\/strong> A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.<\/li>\n
- Contingency<\/a>: <\/strong>A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.<\/li>\n
- Inspection contingency<\/a>:<\/strong> Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.<\/li>\n
- Appraisal contingency<\/a>: <\/strong>Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.<\/li>\n
- Home sale contingency<\/a>:<\/strong> Gives the buyer time to sell their current home before finalizing the purchase.<\/li>\n
- Due diligence<\/a>: <\/strong>A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.<\/li>\n<\/ul>\n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Sisson explains that there\u2019s one particular word that\u2019s not on this initial set, the word \u201cdeal.\u201d<\/p>\n
\u201cWhen agents or people in the industry refer to a transaction as a \u2018deal,\u2019 it just doesn\u2019t sound professional to me,\u201d he explains. \u201cIn my opinion, it cheapens the process. This is a major event for our clients, and calling it a \u2018deal\u2019 makes it sound small, almost dismissive.\u201d<\/p>\n
Contingency terms to watch for<\/h3>\n\n- Contingent<\/a>:<\/strong> A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.<\/li>\n
- Contingency<\/a>: <\/strong>A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.<\/li>\n
- Inspection contingency<\/a>:<\/strong> Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.<\/li>\n
- Appraisal contingency<\/a>: <\/strong>Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.<\/li>\n
- Home sale contingency<\/a>:<\/strong> Gives the buyer time to sell their current home before finalizing the purchase.<\/li>\n
- Due diligence<\/a>: <\/strong>A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.<\/li>\n<\/ul>\n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. \u201cThere\u2019s an important distinction between waiving inspection and waiving the inspection contingency. People will say, \u2018We\u2019re going to have to waive inspection,\u2019 but what\u2019s really meant \u2014 in the majority of the country \u2014 is waiving the inspection contingency.\u201d<\/p>\n
He explains that just because a buyer waives the inspection contingency \u2014 which would typically be against a broker\u2019s advice \u2014 doesn\u2019t mean they shouldn\u2019t do an inspection.<\/p>\n
\u201cThis term means the buyer can still do the inspection, but it\u2019s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.\u201d<\/p>\n
Title, escrow, and closing terms<\/h3>\n\n- Deed vs. title<\/a>: <\/strong>The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.<\/li>\n
- Title search<\/a>:<\/strong> A process that verifies the seller\u2019s legal ownership and checks for any liens or legal issues with the property.<\/li>\n
- Title insurance<\/a>: <\/strong>Insurance that protects against future title disputes. A related term, \u201ccloud on title<\/a>,\u201d refers to unresolved issues that could delay closing.<\/li>\n
- Escrow holder<\/a>: <\/strong>A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is \u201cin escrow.\u201d<\/li>\n
- Closing<\/a>:<\/strong> The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.<\/li>\n
- Closing documents<\/a>:<\/strong> The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.<\/li>\n
- Closing escrow<\/a>:<\/strong> Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.<\/li>\n
- Closing costs<\/a>:<\/strong> Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.<\/li>\n
- Possession date<\/a>:<\/strong> The day the buyer officially takes possession of the home, which may or may not be the same day as closing.<\/li>\n<\/ul>\n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n\u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n
\n\n\n\n\n
\n \n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent<\/a>, and then clearly communicate your goals and anything that\u2019s happening in your life that may impact those goals.<\/p>\n \u201cAs an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they\u2019re completely open and honest. That\u2019s my advice \u2014 be fully transparent with your trusted agent. Share what you\u2019re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.\u201d<\/p>\n \n\n\n\n\n Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n \n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n