The journey through the real estate market is paved with a unique set of terms and phrases that can be perplexing to the uninitiated. As you advance in your home buying, selling, or investing journey, you’ll encounter concepts that require a deeper understanding to effectively navigate the intricate landscape of real estate transactions. Here are 20 advanced real estate terms every market participant should be familiar with:

Amortization

The process of spreading out a loan into a series of fixed payments over time, covering both principal and interest, until the loan is paid off.

Closing Disclosure (CD)

A final statement of loan terms and closing costs that the lender must provide to the borrower at least three days before closing.

Condo Fees

Monthly fees required by condo owners, covering maintenance and amenities in the condominium complex.

Deed

The legal document that transfers property ownership from the seller to the buyer, officially recorded in public records.

Earnest Money

A deposit made to a seller showing the buyer’s good faith in a transaction. This is typically held in an escrow account until closing.

Home Equity Line of Credit (HELOC)

A loan where the borrower uses the equity of their home as collateral. It typically allows for borrowing over time, rather than providing a lump sum.

Joint Tenancy

A form of property ownership where two or more people own the property together, with rights of survivorship.

Lien

A legal claim or right against a property by a creditor, ensuring the property cannot be sold without paying the creditor.

Mortgage Insurance (MI)

Insurance policies that protect lenders from the risk of a borrower defaulting on a loan, typically required for down payments less than 20%.

Open House

A scheduled period when a home is available for viewing by potential buyers without the need for an appointment.

Point

A fee paid to the lender at closing to lower the interest rate on the mortgage loan. One point equals 1% of the loan amount.

Quitclaim Deed

A legal document transferring any ownership interest in property the grantor may have, without any warranty of clear title.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Survey

A detailed drawing or map showing the boundaries, dimensions, and location of a property, including buildings and other site improvements.

Tenancy in Common

A form of concurrent ownership where each owner has an undivided interest in the property, but without the right of survivorship.

Underwater Mortgage

Occurs when a homeowner owes more on their mortgage than the home is currently worth in the marketplace.

Vesting

The process of gaining full rights to a financial instrument, including real estate titles and retirement benefits.

Walkability

A measure of how friendly an area is to walking, reflecting the ability to walk to amenities, shops, schools, and work.

Yield

The income return on an investment, such as the rental income from a property, expressed as a percentage of the property’s value.

Zestimate

Zillow’s estimated market value for a home, calculated using a proprietary formula. It’s a starting point in determining a home’s value but not an official appraisal.

Arming yourself with an understanding of these terms not only empowers you to communicate more effectively with real estate professionals but also enables you to make more informed decisions throughout your real estate journey. For further guidance, always consider consulting with a knowledgeable real estate agent or attorney who can provide expert advice tailored to your specific situation.