A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Above Grade Finished

Above Grade Finished refers to a home’s livable or finished square footage above ground level.

Active Listings

Active Listings indicate the number of properties available for sale at the end of a specified period, significantly impacting supply, demand dynamics, and home prices.

Adjustable-Rate Mortgage (ARM)

An Adjustable-Rate Mortgage (ARM) is a loan with an interest rate that can change based on market fluctuations during the loan’s term.

Amenity

Amenities are bonus features or perks that residents enjoy, such as a fitness center, pool, sauna, or dog washing station.

Amortization

Amortization spreads a loan into fixed payments where a portion goes towards interest and the rest towards the loan balance.

Apartment

An apartment is a residential unit within a building, distinct from a condo, as it is rented rather than owned.

Appraisal

An appraisal determines a property’s value based on recent sales of comparable homes in the neighborhood.

Appraisal Contingency

This buyer protection ensures that the Property’s value aligns with the agreed-upon price in the contract.

Appraisal Gap Coverage

Appraisal Gap Coverage bridges the difference between the purchase price and appraised value, accommodating market value variations.

Appraisal Management Company (AMC)

An AMC is a liaison between appraisers and lenders in real estate transactions.

Appraiser

An appraiser is a licensed individual who assesses a property’s fair market value based on comparable sold properties.

Area Total

Area Total represents the complete square footage of a property.

As-Is

When a property is sold as-is, the seller will make no repairs or changes before the sale.

Assessed Value

The Assessed Value is assigned to a property to determine its tax rate.

Attached Home

An Attached Home shares a common wall with another unit, such as a townhome, condo, or apartment.

B

Basement

The Basement is the lowest story of a building, potentially below ground level, and may be finished, unfinished, or a combination of both.

Bilevel

A Bilevel, a raised ranch, features two levels with an entrance between them.

Blind Offer

A Blind Offer is made by a buyer who hasn’t visited the Property in person.

Boiler

A Boiler circulates hot water or steam through a radiator system to generate heat.

Buyer’s Agent

A Buyer’s Agent assists in purchasing a home, ensuring the best deal and legally protecting the buyer’s interests.

C

Capitalization Rate

The Capitalization Rate helps evaluate real estate investment, calculated as the net operating income divided by the Property’s current market value.

Carport

A Carport is a covered parking structure with open sides protecting the top of a parked vehicle.

Cash Reserves

Cash Reserves are funds set aside for emergencies by individuals or businesses.

Closed Listing

A property is considered “closed” after the official transfer of ownership occurs.

Closing

Closing is the final step in a real estate transaction, involving mortgage finalization, fee payment, and signing agreements.

Closing Costs

Closing Costs include fees incurred by buyers and sellers at the closing of a real estate transaction, covering various expenses.

Coming Soon

A “Coming Soon” Property isn’t officially on the market yet but is expected to be listed for sale.

Commercial Lease

A Commercial Lease specifies rental for business purposes, such as office spaces.

Commission

The Commission is the payment made to a real estate agent for their services in a property sale.

Comparable

A Comparable is a recently sold property used to determine the value of a similar property.

Comparative Market Analysis

This process determines a home’s value based on sales prices of similar properties.

Condominium

A Condominium is an individually owned unit within a building, similar to an apartment but owned instead of rented.

Concession

A Concession is a benefit or discount a buyer or seller offers to facilitate a home sale.

Contingency

A Contingency is a condition that must be met for a real estate contract to be finalized.

Contract

A Contract is a written and legally binding agreement between a buyer and seller outlining the details of a property transaction.

Conventional Sale

A Conventional Sale occurs when a property is owned outright or when the owner owes less on the mortgage than the market value.

Counteroffer

A Counteroffer presents the original offerer with options to accept, reject, or make a new offer.

Covenants, Conditions & Restrictions (CC&Rs)

CC&Rs are limits and rules governing residences in a neighborhood or condominium building.

Covered Parking

Covered Parking is a structure providing shelter for multiple vehicles.

Curb Appeal

Curb Appeal reflects a property’s attractiveness from the sidewalk, creating a first impression.

D

Days in MLS (DOM)

Days in MLS indicate the days a property is listed for sale before a contract is signed.

Debt-to-Income Ratio

Debt-to-Income Ratio measures monthly debt payments against gross monthly income, influencing a borrower’s capacity to manage loan repayments.

Deed of Trust

A Deed of Trust transfers a property’s legal title to a third party until the borrower repays the debt.

Deeded Parking

Deeded Parking refers to parking space associated with a townhouse or condominium unit and included in the property sale.

Detached Home

A Detached Home stands on its lot and doesn’t share walls with other properties.

Down Payment

The Down Payment is an initial payment made by a buyer as part of a real estate transaction.

Down Payment Assistance

Down Payment Assistance helps buyers with funding from local or state entities, lenders, or non-profits to cover a down payment on a mortgage loan.

Due Diligence

Due Diligence refers to a buyer’s investigation of a property’s aspects before or within a specified time frame after entering a contract.

Duplex

A Duplex consists of two attached units, either side by side or above each other.

E

Earnest Money

Earnest Money shows a buyer’s serious intent to purchase a property.

Equity

Equity is the difference between a property’s market value and the remaining mortgage amount.

Escrow

Escrow involves a neutral third party holding funds related to a real estate transaction until certain conditions are met.

Exclusive Right-to-Sell

An Exclusive Right-to-Sell agreement gives an agent exclusive rights to market and sell a seller’s home.

Exclusive Right-to-Buy

This agreement prevents buyers from working with other brokers as they exclusively work with one agent.

Expired

A listing becomes “expired” when the specified sale period between the seller and listing agent ends without a sale.

Estate

An Estate is a property sold by the executor of an estate for a deceased homeowner.

Exclusion

Exclusions are items not included in the sale of a home, such as appliances or personal Property.

F

Flipping

Flipping involves buying and selling a home quickly for profit after making updates.

Foreclosure

Foreclosure occurs when a homeowner fails to pay the mortgage, leading the lender to resell the Property to recover losses.

FHA Loan

An FHA Loan, insured by the Federal Housing Administration, offers low-to-moderate-income borrowers lower down payments and credit score requirements.

Fixed-Rate Mortgage

A Fixed-Rate Mortgage maintains a constant interest rate throughout the loan term.

Fair Market Value (FMV)

Fair Market Value is the price at which a willing buyer and seller agree upon a property’s value under normal market conditions.

For Sale by Owner (FSBO)

For Sale by Owner refers to a property listed for sale by the owner without an agent’s representation.

For Sale by Agent

A For Sale by Agent listing is a property sold by a real estate agent who lists their Property on the open market.

Fix-Up / Fixer

A Fix-Up or Fixer property requires repairs or updates to make it livable or up to modern standards.

G

Garage

A Garage is a closed structure that houses vehicles with a retractable door.

Garden Level

A Garden Level refers to apartments not in the basement or the first floor, with windows typically at street level.

Great Room

A Great Room is the central area of a home with an open floor plan containing living and dining spaces.

H

High-Rise

A High-Rise is a building with at least seven stories.

Historical District

A Historic District is a protected area governed by historical guidelines for any exterior property changes.

Home Warranty

A Home Warranty offers discounted repair and replacement services for a homeowner’s major home functionalities.

Homeowners Association (HOA)

An HOA comprises property owners in a community, establishing rules for property use and maintenance.

Homeowners Association Fee

The HOA Fee is a monthly due paid by homeowners to maintain common areas within the association.

Homeowners Insurance

Homeowners Insurance covers losses and damages to a home and provides liability coverage for accidents on the Property.

I

iBuyer

An iBuyer is a real estate investment company making fast cash offers on homes.

Inclusions

Inclusions are removable assets thrown into a contract by the seller, potentially enhancing the deal.

Inspection

An Inspection is a professional examination of a property’s condition before purchase.

Interest Rate

The Interest Rate is the percentage of a mortgage payment paid to the lender.

Irrigated Lot

An Irrigated Lot includes water rights to a well or water source for property irrigation.

K

Kick-Out Clause

A Kick-Out Clause allows sellers to continue marketing a property if the offer contains contingencies, granting the ability to accept a better offer within a specific time frame.

L

Landscape

Landscape refers to the aesthetic or functional alteration of a property’s grounds, including outdoor enhancements.

Lease

A Lease outlines the terms of a rental property agreement between a landlord and a tenant.

Lien

A Lien is the right to retain a property until a debt is discharged, either from a mortgage or work performed on the Property.

Listing

A Listing is a property for sale through the multiple listing service (MLS).

Listing Agent

A Listing Agent works on behalf of a property owner to market and sell their Property.

Listing Agreement

A Listing Agreement legally permits a real estate agent to sell a property on behalf of the owner.

Loan

A Loan is the amount borrowed for purchasing a property from a lender.

M

Manufactured Homes

Manufactured Homes are constructed off-site and assembled on location, also known as “mobile homes.”

Master-Planned Community

A Master-Planned Community offers extensive amenities and design for optimized residential living.

Mid-Rise Building

A Mid-Rise Building has five to 12 floors.

Model Home

A Model Home is a display property for touring potential residents until all homes in the development are sold.

Months of Inventory (MOI)

Months of Inventory measures the market balance between buyers and sellers, indicating the time to sell available homes.

Mortgage

A Mortgage is a long-term loan for property purchase, repaid in monthly installments.

Mortgage Broker

A Mortgage Broker shops for the best mortgage deals on behalf of borrowers.

Mortgage Insurance

Mortgage Insurance protects lenders if borrowers default on payments due to low down payments.

Mudroom

A Mudroom is an entryway designed for removing footwear and additional storage.

Multi-Family Property

A Multi-Family Property includes multiple households in separate units.

Multiple Listing Service (MLS)

The MLS is a digital marketplace where sellers list their properties for agents to share with potential buyers.

N

Net Operating Income (NOI)

Net Operating Income determines a property’s profit.

New Listings

New Listings refer to properties available during a specified period.

O

Offer

An Offer outlines terms and conditions proposed in a real estate transaction.

Off-Street Parking

Off-street Parking includes parking spots off the road, such as private lots, garages, and driveways.

Open House

An Open House allows potential buyers to view a property at a designated time.

Open Listing

An Open Listing involves a property without an exclusive agreement with any agent.

Open Space

Open Space denotes undeveloped, publicly accessible land.

P

Partial Basement

Unlike a full basement, a Partial Basement does not extend beneath the entire home.

Patio Home

Unlike townhomes, a Patio Home has one and a half stories and shares walls with other units.

Pending

Pending refers to an accepted offer not yet closed, staying in this status for several weeks.

Personal Property

Personal Property can be moved and taken by owners when they move.

Pocket Listing

A Pocket Listing is not a publicized, marketed Property, typically limited to specific buyers.

Post-Closing Occupancy Agreement

This allows the seller to live in the Property after closing for a predetermined time, with the seller potentially paying rent to the buyer.

Pre-Approval Letter

A Pre-Approval Letter indicates a lender’s tentative willingness to approve a borrower up to a specific amount.

Pre-Approved

Pre-Approved indicates a buyer’s review and approval for a loan of a set value.

Preliminary Report

A Preliminary Report is prepared by a title insurance company before issuing a policy to ensure all issues are addressed.

Pre-Qualified

Pre-qualified indicates a buyer qualifies for a loan without a determined value.

Principal

The principal is the original loan amount, excluding interest.

Private Mortgage Insurance (PMI)

PMI protects lenders and does not cover the borrower’s payments if they cannot meet them.

Probate Sale

A Probate Sale occurs when a homeowner passes without a will, leading to a property sale for asset liquidation.

Proof of Funds (POF)

Proof of Funds demonstrates a buyer’s financial capacity for a specific transaction.

Property Tax

Property Tax is a tax based on the value of owned Property, with Colorado boasting some of the lowest rates in the nation.

Purchase and Sale Agreement (PSA)

A Purchase and Sale Agreement finalizes the terms and price for the real estate transaction.

Q

Quadruplex

A Quadruplex is a type of multi-family housing with four individual units.

R

Real Estate Owned Properties (REO)

REO properties are homes repossessed by mortgage lenders due to non-payment by the previous owners.

Realtor®

A Realtor® assists in navigating the real estate market, adhering to a Code of Ethics, and ensuring fair and professional service.

Refinancing

Refinancing secures a new mortgage deal for the remainder of the loan with potentially lower interest rates.

Relocation (Relo)

Relocation sales occur due to job transfers, prompting a home sale.

Reverse Mortgage

A Reverse Mortgage allows seniors (62 years or older) to release home equity in exchange for funds.

S

Seller Disclosure

A Seller Disclosure details known issues and improvements made to a property during the seller’s ownership.

Short Sale

A Short Sale occurs when a property sells for less than the outstanding loan balance.

Split-Level

A Split-Level house has at least three staggered levels connected by stairs.

Staging

Staging involves preparing and furnishing a home to attract potential buyers.

T

Title Insurance

Title Insurance protects both buyer and lender if the title ownership is disputed or unclear.

Title Search

A Title Search examines public records to ensure the seller has full legal ownership to sell the Property.

U

USDA Loan

A USDA Loan, offered by the United States Department of Agriculture, targets rural Americans for housing.

V

VA Loan

A VA Loan is available to veterans and is partially backed by the Department of Veterans Affairs.

W

Withdrawn (or Canceled)

A Withdrawn listing was once on the market but is no longer for sale, or a buyer cancels their offer.

Z

Zillow’s Zestimate

Zillow’s Zestimate provides an estimated property value but may not be completely accurate, varying up to 20% from the actual value.

Zoning

Zoning designates land use and building types allowed in certain areas.

Remember, navigating real estate terminology can be overwhelming. Understanding these terms can simplify your buying or selling process. Always seek professional guidance to ensure a successful real estate transaction.