Say What? Home-Buying Lingo You Should Know
RM Home Specialists • October 9, 2019

If you are a first time home buyer or even a repeat buyer, you quickly realize that real estate has a language all its own. Understanding some of the lingo can help you navigate the process a little easier. By learning a few critical terms, you will be in a better position to ask the right questions and make the best decisions.

  • Buyer’s Market – A real estate climate where the number of listings outnumber qualified buyers.
  • Seller’s Market – A real estate climate when there are very few desirable properties listed for sale.
  • Contingencies – Specific conditions included in an offer to protect the buyer against unexpected situations, such as inspection, loan approval, and appraisal value.
  • Earnest Money – Money deposited when the offer is accepted. Subject to any contingencies, this money protects the seller from a buyer who simply changes her mind.
  • Escrow Agent – A neutral 3rd party who manages the paperwork in a state where attorneys are not used to conclude the contract.
  • Closing Costs – Fees that must be paid by both buyers to conclude the sale.
  • Conforming Loan – A conforming loan is a loan limit by which the loan can be sold on the secondary market; a jumbo loan is one which is higher than this limit.
  • PMI – PMI, private mortgage insurance is a fee paid by the borrower of a loan that they obtained with less than a 20% down payment.

These are just a few of the common terms used in real estate. If you are involved in a real estate transaction, learning a bit of the common lingo will help you understand the process better and make your home sale or purchase a smooth one.

STORIES FROM HOME


"From the moment we began working with Madison and Regina, we knew we were in exceptional hands. Their gracious professionalism, deep knowledge, and genuine warmth shaped every step of our journey.


Although we’ve purchased homes before, their continual updates, thoughtful explanations, and steady, patient support made us feel genuinely cared for.
When we unexpectedly lost a property due to an unethical selling agent, they stood by us with calm, unwavering professionalism.


We wholeheartedly recommend trusting this exceptional team with life’s most important real estate milestones. Their stylish eye, family‑centered spirit, and heartfelt dedication set them apart in every way. When the day comes for a new chapter and the search for our final, forever dream home, we will undoubtedly call on Madison and Regina again." E. SANDSTROM | TACOMA, WA

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