Real Estate Glossary
This real estate glossary defines common terms and phrases used throughout the home buying and selling process. It’s designed to help you understand key real estate concepts, paperwork, and industry language so you can make confident decisions every step of the way.
A
Appraisal: An independent valuation of property to confirm fair market value for lenders and buyers, often required before loan approval. Learn what to expect from an appraisal in our guide to the closing process.
Assessed Value: The value placed on property by a municipality for tax purposes, used to calculate annual property taxes across Western New York.
B
Bidding War: When multiple buyers compete for a property, often driving up the final sale price. Learn how shifting market trends can influence buyer competition in our Buffalo housing market insights.
Buyer’s Agent: The agent representing the buyer’s interests during a real estate transaction. Learn how to choose the right representative in our blog about selecting your agent or meet your Enas Latif Sales Team professional.
C
Comparative Market Analysis (CMA): An agent’s evaluation of a home’s value based on recent sales of similar properties. Sellers can request a home value estimate to start pricing accurately.
Closing Costs: Fees paid at the end of a real estate transaction, including title, appraisal, and lender charges. Learn what to expect in our closing process guide.
Closing Disclosure: A federally required document summarizing final loan terms and costs, provided before closing by your lender.
Real Estate Commission: The percentage of the sale price paid to agents, typically split between buyer and seller agents. Learn how commissions work in our Western New York selling guide.
Conventional Loan: A mortgage not backed by the government, usually requiring higher credit scores and down payments. Explore financing options on our Pre-Approval page.
Contingency: A clause in a purchase agreement that allows buyers to cancel or renegotiate under specific conditions such as financing or inspections.
Counteroffer: A seller’s response to a buyer’s offer with adjusted pricing or terms. Learn how to navigate offers in our home-selling checklist.
D
Debt-to-Income Ratio: A measure of monthly debt payments compared to gross income, used to determine loan eligibility.
Down Payment: The upfront cash portion of a home purchase, typically between 3% and 20% of the sale price. Find first-time buyer advice in our buyer tips blog.
Dual Agency: When one agent represents both the buyer and seller, requiring full disclosure to both parties.
E
Earnest Money Deposit: Funds placed by the buyer to show good faith and serious intent to purchase, held in escrow until closing.
Equity: The difference between a home’s market value and the remaining mortgage balance. Track equity growth with our home valuation tool.
Escrow: A financial account managed by a third party to hold funds for taxes, insurance, or deposits during a transaction.
F
FHA Loan: A government-backed mortgage allowing lower down payments (as little as 3.5%) for qualified buyers — learn more on our mortgage pre-approval page.
H
Home Inspection: A professional evaluation of a home’s condition, systems, and safety before closing. Read about inspection expectations in our closing process guide.
L
Listing Agent: The real estate professional representing the seller. Connect with a local listing agent from our team or explore selling advice.
Pre-Approval: A lender’s confirmation of how much a buyer can borrow, helping strengthen offers in competitive markets. Start your process at Get Pre-Approved.
M
Market Value: The price a property is likely to sell for under current market conditions. Compare trends in our regional market overview.
Multiple Listing Service (MLS): A database where agents share property listings with other professionals and buyers. Explore active listings in Buffalo and surrounding areas.
Mortgage Calculator: An online tool to estimate monthly mortgage payments, taxes, and insurance. Combine it with your pre-approval estimate for accuracy.
Mold Inspection: A specialized test that detects mold growth or air quality issues in a home.
O
Offer Price: The amount a buyer proposes to pay for a property based on budget, market trends, and comparable sales. See what influences offers in our market insights blog.
P
Private Mortgage Insurance (PMI): A required insurance fee for buyers who put down less than 20% on a conventional loan.
Property Taxes: Annual taxes assessed by local government based on a home’s value, often included in mortgage escrow accounts. Learn more about local tax trends in our housing outlook blog.
R
Radon Test: An optional inspection measuring radon gas levels to ensure home safety.
Refinancing: Replacing an existing mortgage with a new one, often to obtain better interest rates or terms. Ask your agent for lender guidance.
S
Seller’s Disclosure: A legal document where the seller lists known issues or defects with the property. Required before listing your home.
T
Title Search: A review of property records to confirm ownership and check for any liens or claims. Explained further in our closing process guide.
Title Insurance: Protection for buyers and lenders against future ownership disputes or title defects.
U
USDA Loan: A government loan designed for rural homebuyers, often requiring little or no down payment. Explore rural listings like Pendleton homes for sale.
V
VA Loan: A no-down-payment mortgage option for eligible veterans, active-duty members, and certain spouses.
W
Walkthrough: A final visit by the buyer before closing to confirm that the property’s condition matches the purchase agreement.
Call 716-417-4755 or request to speak with an agent today to get expert real estate guidance from our team.