A determination of the value of something, in this case, the house you plan to buy. A professional appraiser makes an estimate by examining the property, looking at the initial purchase price, and comparing it with recent sales of similar property.

A property that is marketed in an “as-is” condition usually is an indication that the seller is not willing to perform most if not all repairs. It could also mean that it is already priced considerably below market pricing in the area.

All settlement or transaction charges that home buyers need to pay at the close of escrow when the property is transferred.

A term often used to describe the research an individual or an agent does when comparing similar homes sold in each area during a specific time.

Homes in a given area that have sold within the past several months that a real estate agent uses to determine a home’s value.

Conditions written into a home purchase contract that protect the buyer should issues arise.

After an offer has been accepted, finalization of the closing can be contingent on certain terms, i.e: inspection, appraisal, etc.

The response from the seller in regard to an offer.

A percent of the cost of the property that is paid up front as a part of the mortgage.

The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party. Upon closing, the money will generally be applied to the down payment or closing costs.

Home equity is the portion of a home’s current value that the owner actually has paid for and owns. Equity in a house is initially acquired with the down payment you make during the initial purchase of the property.

The term has multiple meanings: earnest money is typically held by a third party until closing in “escrow”. It can also be referred to as the time period from when the contract is written and accepted by the seller to when the home sale actually closes.

A property’s fair market value is its accurate valuation in a free and open market under the condition that buyers and sellers are knowledgeable about the asset, acting in their best interests, and free of undue pressure to complete the transaction.

An examination of the condition of a real estate property. A home inspector assesses the condition of a property, including its heating/cooling systems, plumbing, electrical work, water and sewage, as well as some fire and safety issues.

A one-year service that covers the cost of repairs or replacements to items covered in the plan (such as stoves, dishwashers, A/C, heaters, etc).

The national list of real estate properties that are available for sale. These are the most reliable sources to receive up-to-date listing information.

The process in which a lender makes an initial evaluation of how much money a buyer might be qualified to borrow based on the preliminary financial information provided. This gives the seller more confidence in the buyer’s ability to close escrow, but is not a guarantee that the loan will be approved.

Ownership of real estate or personal property. With real estate, title is evidenced by a deed (or other document) recorded in the county land records office.

A process of a lener follows to assess a home loan applicant’s income, assets and credit, and the risk involved in offering the applicant a mortgage.

The local laws dividing cities or counties into different zones according to allowed uses, from single-family residential to commercial to industrial. Mixed-use zones are also used. Zoning ordinances control size, location, and use of buildings within these different areas and have an effect on traffic, health, and livability.