A real estate agent is licensed to help people buy and sell property and earns a commission when a deal closes. A broker, on the other hand, is a step up—they’ve completed extra education and passed a higher-level exam. Brokers can work on their own or even open their own firm and hire agents to work under them.
Real Estate Jargon Got You Spinning? Let’s Decode It Together
Buying a home—especially your first—can feel a bit like learning a new language while riding a roller coaster. There’s excitement, confusion, maybe a few panicked Googles... and oh yes, so much jargon.
In today’s market, even finding a home can feel like a full-time job. With a national shortage of about 6.5 million homes (yep, you read that right), and inventory extra tight, the search alone can be a serious challenge. And once you do spot "the one," the price tag may make you blink twice. Interest rates have climbed in recent years, and that means bigger monthly payments—even with a strong down payment.
To top it off, there are more all-cash buyers out there than ever, making competition even fiercer. So yes, it’s a lot.
But don’t worry—you’re not in this alone.
Before you dive into the world of home buying or selling, it helps to speak the language. Below, you’ll find a handy glossary of real estate terms—because understanding the lingo is the first step to feeling confident in the process.
Because let’s be real—terms like “escrow,” “contingency,” and “appraisal gap” don’t exactly explain themselves. But once you know what they mean, you'll feel way more confident navigating the process.
So grab your coffee, get comfy, and let’s start demystifying the world of real estate—one word at a time.
This post was based on information found on The New York Times
A pocket listing is a property that's for sale but not publicly advertised. Instead, it's quietly shared through an agent’s personal network—often with select buyers or investors—making it more of an exclusive, behind-the-scenes opportunity.
A short sale happens when a homeowner, often dealing with financial hardship, sells their home for less than the amount they still owe on the mortgage. The lender must approve the sale since they’re agreeing to take a loss.
An offer made on a property by a buyer who has never viewed it in person.
A small deposit made by the buyer before closing, showing the seller that they are serious and committed to the offer.
The process of looking up public records to confirm the legal owner of a property.
ARM stands for Adjustable Rate Mortgage, which is a type of home loan where the interest rate can change over time, typically based on market conditions.
A balloon mortgage starts with lower monthly payments (or sometimes none at all) and ends with a large lump-sum payment due in full at the end of the loan term.
A rate lock is a guarantee from your mortgage lender that the interest rate you’re offered will stay the same from the moment you apply until your home purchase is finalized.
The process a financial institution uses to assess and approve a loan application, determining the risk involved and guaranteeing payment if the loan is approved.
A type of property transfer that quickly transfers ownership of a title, but offers little protection to the new owner regarding any existing claims or liabilities on the property.
Refers to the rise in a property’s value over time, often due to market conditions, improvements, or other factors.
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