Selling Vocab

Here are common real estate selling definitions, explained clearly:

Listing: An agreement between a homeowner (seller) and a real estate broker authorizing the broker to market and sell the property. It outlines the terms of the sale, including the list price and commission.

Seller: The individual(s) or entity that owns the property and is offering it for sale.

Buyer: The individual(s) or entity interested in purchasing the property.

Real Estate Agent/Salesperson: A licensed professional who assists sellers in marketing and selling their property. They work under a licensed real estate broker.

Real Estate Broker: A licensed individual or firm that employs real estate agents and is authorized to represent buyers and sellers in real estate transactions. Brokers have more education and licensing requirements than agents.

Commission: A fee paid to the real estate broker upon the successful sale of the property. It's typically a percentage of the final sale price and is usually split between the seller's agent and the buyer's agent (if they are different).

Market Value: The estimated price a willing and able buyer would likely pay, and a willing and able seller would likely accept, for a property in a particular market at a given time.

Appraisal: A formal, unbiased estimate of a property's market value, typically conducted by a licensed appraiser. Lenders often require an appraisal before approving a mortgage.

Closing/Settlement: The final stage of the real estate transaction where ownership of the property is legally transferred from the seller to the buyer. All necessary documents are signed, and funds are distributed.

Title: Legal ownership of a property, evidenced by a deed.

Deed: A legal document that transfers ownership of real property from the seller (grantor) to the buyer (grantee).

Escrow: A neutral third party that holds funds and documents related to the real estate transaction until all conditions of the sale are met.

 

Listing-Related Terms:

List Price: The initial price at which the seller offers the property for sale. It's often a starting point for negotiations.

Listing Agreement: The legally binding contract between the seller and the real estate broker, outlining the terms of the listing.

Exclusive Right to Sell Listing: A type of listing agreement where the broker is entitled to a commission if the property sells during the listing period, regardless of who finds the buyer (even if the seller finds the buyer themselves).

Exclusive Agency Listing: A type of listing agreement where the broker is entitled to a commission if they or any other broker finds the buyer. However, if the seller finds the buyer themselves, the broker is not entitled to a commission.

Open Listing: A non-exclusive listing agreement where the seller can list their property with multiple brokers simultaneously. Only the broker who finds the buyer earns a commission.

Multiple Listing Service (MLS): A database where real estate agents share information about properties for sale. This allows for broader exposure of listings to potential buyers.

Days on Market (DOM): The number of days a property has been listed for sale on the market. A high DOM might indicate the property is overpriced or has other issues.

Staging: The process of preparing a home for sale by arranging furniture, decor, and accessories to showcase its best features and appeal to a wider range of buyers.  

Open House: A scheduled time when the property is open for public viewing by potential buyers without a prior appointment.

Virtual Tour: An online simulation of a property that allows potential buyers to virtually walk through the home remotely.

Offer and Negotiation Terms:

Offer: A formal proposal made by a potential buyer to purchase the property, outlining the price and terms they are willing to agree to.

Purchase Agreement/Sales Contract: A legally binding written agreement between the buyer and seller outlining the terms and conditions of the sale.

Counteroffer: A response to an offer where the seller (or buyer) proposes different terms. This can go back and forth until an agreement is reached.

Acceptance: The seller's agreement to the buyer's offer, creating a binding contract.

Contingency: A condition in the purchase agreement that must be met for the sale to proceed. Common contingencies include financing, inspection, and appraisal.

Earnest Money Deposit (EMD): A sum of money the buyer puts down with their offer to show their serious intent to purchase the property. It's typically held in escrow.

Property Condition and Disclosures:

Seller's Disclosure: A document provided by the seller to the buyer that details any known defects or issues with the property. Laws regarding disclosure vary by location.

Home Inspection: An examination of the property's condition by a qualified professional, typically paid for by the buyer. It can identify potential problems with the structure, systems, and components of the home.

As-Is: A condition where the seller is selling the property in its current state, with no obligation to make repairs. However, sellers are still usually required to disclose known defects.

Understanding these common real estate selling definitions will help both sellers and buyers navigate the process more effectively.