Market & Pricing Terms

1. Absorption Rate – The rate at which available homes are sold in a specific market during a given time period. A high absorption rate indicates a seller’s market, while a low rate suggests a buyer’s market.

2. Asking Price – The initial price a seller lists their home for sale.

3. Bidding War – When multiple buyers submit competing offers, often driving the sale price above the asking price.

4. Buyer’s Market – A market condition where the supply of homes exceeds demand, giving buyers more negotiating power and potentially lower prices.

5. Days on Market (DOM) – The number of days a property remains listed before it goes under contract. A high DOM may indicate an overpriced or less desirable property.

6. Expired Listing – A property that was listed for sale but did not sell before the listing contract expired.

7. List Price – The price at which a property is currently being marketed for sale.

8. Lowball Offer – A significantly lower-than-asking-price offer made by a buyer, often in a buyer’s market.

9. Multiple Offers – When a property receives offers from more than one buyer at the same time, which can lead to bidding wars.

10. Off-Market Property – A home that is for sale but not listed on the MLS, often sold privately or through exclusive marketing.

11. Pending Sale – A property that has an accepted offer and is under contract but has not yet closed.

12. Pocket Listing – A property that is for sale but not publicly listed on the MLS, typically marketed only to select buyers.

13. Price per Square Foot – The sale price divided by the total square footage of the home, often used for market comparisons.

14. Price Reduction – A decrease in a property’s list price, often used to attract more buyers.

15. Real Estate Market Trends – Data and analysis showing current conditions and predictions for the housing market, such as rising or falling home prices.

16. Seller’s Market – A market condition where demand for homes exceeds supply, leading to faster sales and higher prices.

17. Sold Price – The final price at which a property was sold.

18. Withdrawn Listing – A property that was removed from the market before selling, either temporarily or permanently.

Negotiation & Offer Terms

19. Appraisal Contingency – A clause in a purchase contract that allows a buyer to renegotiate or back out if the home’s appraised value is lower than the agreed-upon price.

20. Backup Offer – A secondary offer that a seller accepts in case the first offer falls through.

21. Best and Final Offer – A term used in bidding wars where buyers submit their highest offer, often with no further negotiations.

22. Cash Offer – An offer to purchase a property without financing, often making the transaction faster and more attractive to sellers.

23. Closing Date – The agreed-upon date when the sale of a property is finalized and ownership is transferred.

24. Counteroffer – A response from a seller (or buyer) modifying terms of the original offer.

25. Escalation Clause – A clause in an offer that automatically increases the buyer’s offer price if higher competing offers come in, up to a maximum limit.

26. Inspection Contingency – A contract clause allowing the buyer to back out or negotiate repairs if the home inspection reveals significant issues.

27. Loan Contingency – A clause stating that a buyer’s offer is contingent upon obtaining financing.

28. Non-Contingent Offer – An offer made without any conditions, often used to compete in a seller’s market.

Mortgage & Financing Terms

29. Adjustable-Rate Mortgage (ARM) – A mortgage with an interest rate that changes periodically based on market conditions.

30. Amortization – The gradual repayment of a loan through scheduled monthly payments.

31. Balloon Mortgage – A short-term loan with small monthly payments and a large final payment due at the end of the loan term.

32. Debt-to-Income Ratio (DTI) – A financial metric lenders use to determine a borrower’s ability to repay a loan, calculated by dividing total monthly debt payments by gross monthly income.

33. Escrow Account – A bank account used by a lender to hold funds for property taxes and homeowner’s insurance.

34. Fixed-Rate Mortgage – A home loan with an interest rate that remains the same for the entire term.

35. Jumbo Loan – A mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

36. Loan-to-Value Ratio (LTV) – A measure of mortgage risk calculated by dividing the loan amount by the property’s appraised value.

37. Mortgage Pre-Approval – A lender’s commitment to provide financing up to a certain amount, based on a buyer’s financial profile.

38. Private Mortgage Insurance (PMI) – A fee charged to borrowers who put down less than 20% on a conventional mortgage to protect the lender against default.