Top 20 Real Estate Terms Every Agent Should Know

Top 20 Real Estate Terms Every Agent Should Know

As a real estate agent, staying well-informed about industry terminology is not just an advantage—it's a necessity. For real estate agents, both seasoned and newbies, understanding real estate terms can greatly impact negotiations, contracts, and client relationships. 

However, it’s easier to have the top real estate terms in one place. In this blog, we provide you with a real estate glossary (separated by category) you can always come back to. 

Real Estate Terms 

Here's a real estate glossary with the top 20 real estate terms every agent should have in their vocabulary. 

Property Listing Terms

1. As-Is 
A term used to indicate that a property is being sold in its current condition, with the buyer accepting the property with all its faults, without the seller having to make any repairs or improvements.

2. Listing Agent 
A listing agent is the real estate agent representing the seller, responsible for marketing the property and negotiating the best possible deal for the seller. 

Purchase Agreement Terms

3. Earnest Money Deposit (EMD) 
A deposit made by the buyer to the seller as a token of the buyer's commitment to complete the transaction. 

4. Commission 
A realtor commission is a fee paid to real estate agents as compensation for their services, usually a percentage of the property's sale price. 

5. Pending
A status indicating that an offer on a property has been made and accepted, but the sale is not yet final.  

Mortgage Terminology 

6. Debt-to-Income Ratio (DTI) 
A calculation used by lenders to compare a borrower's total monthly debt payments to their monthly gross income. This is used to assess the borrower's ability to manage monthly payments and repay debts. 

7. Mortgage 
A loan specifically for purchasing real estate where the property itself serves as collateral for the loan. 

8. Preapproval 
A lender's conditional agreement to lend a specific amount based on a preliminary review of the buyer's creditworthiness. 

9. Prequalification 
A preliminary step in the mortgage process, where a lender assesses the borrower's financial situation to estimate how much the borrower may be eligible to borrow.

Legal Real Estate Terms

10. Deed 
A deed is a legal document that represents the ownership of the property and is transferred from seller to buyer during the closing process.

11. Foreclosure 
A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan. 

12. Lien 
A legal right or claim against a property by a creditor until the debt owed by the property owner is paid off.

13. Title 
A title is a legal document or evidence of a person's right to own and use the property.

Negotiation Jargon

14. Buyer's Agent 
A buyer’s agent represents the interests of the buyer in a real estate transaction, providing advice, conducting negotiations, and helping buyers through the process of purchasing property. 

15. Comparables (Comps) 
Comps are similar property sales, rentals, or listings used to determine the value of a property through comparison. 

Closing Terms

16. Closing 
The final step in the real estate transaction process where the deed is transferred from seller to buyer, documents are signed, and the buyer officially becomes the owner of the property.

17. Escrow 
A neutral third party or account that holds funds, documents, or property until the specified contractual conditions are met. 

Real Estate Marketing Terms

18. Broker 
A real estate broker is a step above a real estate agent, typically having more training and state licensing. Brokers can work independently or have agents working for them. 

A real estate professional who is a member of the National Association of REALTORS® and adheres to its strict code of ethics

Property Valuation Terminology

20. Appraisal 
An appraisal is an unbiased professional opinion of a home's value. It's a crucial component of the mortgage process, ensuring lenders do not provide more money than the property is worth. 

Continue Learning With VanEd 

Understanding these real estate terms not only enhances your professionalism as a real estate agent but also equips you to navigate the complexities of real estate transactions with confidence. 

Understanding this terminology allows you to better serve your clients, ensuring smooth and successful property deals. However, it takes more than memorizing a few terms! You should also stay up to date on real estate education from a trusted provider, like VanEd

With over 50,000 pre-licensing students since 1997, VanEd is one of the most trusted schools in the country offering online real estate classes. Additionally, the cost of our pre-license courses is very competitive and represents a significant saving compared to brick-and-mortar classroom schools. 

VanEd students can complete their real estate license courses quickly and pass their exams on the first try by taking advantage of our modern, effective online courses. We also offer continuing education courses to help you renew your real estate license without any stress. 

Ready to stay informed through a top real estate education provider? Sign up today!   

Written and Published by: VanEd

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