A Real Estate Dictionary for Buyers and Sellers

Part 1 

When it comes to real estate, it’s easy to get overwhelmed.  

Below, we’ve put together a quick and easy ‘dictionary’ to highlight some basic real estate terms. Whether you’re considering buying or selling a home, or even thinking about starting a profession in real estate, these five basic terms will help you learn about specific elements of real estate transactions. 

If you’d like to dive a little further into one of these terms or have related questions, send us a DM or email us at: [email protected] to let us know. We love answering questions from our community. 

Appraisal  

An appraisal is what the value of a property is determined at any given time. The market value of a property is given during the appraisal process, which allows those involved in a real estate transaction to properly price it. Appraisals are also important for letting buyers and sellers know how the house will do in the current market.  

Property Titles  

A property title is a document that refers to the concept of ownership rights when it comes to a property. It will have specifics on the property, list who owns it, and will allow the current owner to transfer the title during a sale. Transfers of titles often take place in the form of a deed but are not deeds themselves. Cars, boats, and other expensive items of value often have titles.   

Closing  

When a property is “closing” in real estate, it means that the home sale is considered “final.” Everyone involved in the sale has signed all the necessary documents, the lender has approved the sale if they are involved, and the money has been conveyed. A closing date is the date when the buyer is considered the new homeowner.  

Escrow 

Escrow is the process where all parties involved in a real estate action’s interests are protected. Escrow ensures all the conditions of a sale have been met before the sale concludes, and money is exchanged. This process involves an impartial, third party who holds all funds, documents, instructions, and anything else of value are held in a deposit. Once the escrow process is closed, the “escrow holder” handles paperwork, disburses funds, and makes sure all items are delivered to the proper person(s). 

Days on Market (DOM) 

DOM refers to the number of days from the date when the property is listed for sale, via a Multiple Listing Service (MLS), to the date when the buyer has signed a contract with the seller for the sale of the property. This metric is used to help buyers, sellers, and agents understand their local market.