Official (and Unofficial) Real Estate Terms Sellers Should Know

13 hours ago 1

If you’re selling a home for the first time, you’re likely being flooded with new terms and acronyms like comps, concessions, contingency, disclosures, DOM, and CMA.

In this post, we’ve put together a hand-picked glossary of real estate terms you should know — all catered to help first-time sellers like you. We’ve also included a fun click-to-reveal tool with ‘unofficial’ terms like Inspection-itis, Stager’s remorse, and Dispo dread, so you know what to expect before closing day.

To create our real-world list, we interviewed Ken Sisson, a top-rated HomeLight Elite real estate agent in Los Angeles, California, with more than 25 years of experience.

“I find myself jumping in to explain terms quite a bit,” Sisson says. “Even the simple term ‘closing’ can mean different things depending on who you’re talking to and when.”

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Real estate terms you should know

Here’s a curated glossary of must-know terms that will help you better understand the home-selling process — from pricing and listing to negotiation and closing. Click on any real estate term to learn more.

Home pricing and market terms

List price: The price your home is listed for on the market. It’s a starting point, not a guarantee of your final sale price.
Comps: Recently sold homes similar (comparable) to yours, used to help price your home accurately.
Comparative Market Analysis (CMA): A detailed report prepared by your agent to analyze comps and estimate your home’s market value.
Sale-to-list ratio: A percentage that compares the final sale price to the original list price. Over 100% means the home sold above asking.
Zestimate: Zillow’s automated home value estimate. These and other free estimators can be helpful, but they’re not a substitute for a CMA or an appraisal.
Equity: The portion of your home’s value you truly own, calculated as market value minus what you still owe on your mortgage.

Listing, showing, and exposure terms

Listing agreement: A contract between a homeowner (seller) and a real estate agent, authorizing the agent to market and sell the property.
Multiple Listing Service (MLS): A database used by agents to share property listings with other agents and buyers.
iBuyer: A company that uses technology to make near-instant cash offers on homes, usually in exchange for convenience and speed at a cost.
Fixture: An item that’s permanently attached to the home (like light fixtures or built-in shelving) and typically included in the sale.
As-is sale: This listing term means the seller is selling the home in its current condition, without making any repairs or improvements.

Financing and buyer qualification terms

Pre-approved vs. prequalified: Prequalified means a lender has made a preliminary assessment; pre-approved means the buyer has submitted documents and been more thoroughly vetted.
Loan-to-value ratio (LTV): A percentage comparing the loan amount to the home’s appraised value. A lower LTV is better for buyers.
Debt-to-income ratio (DTI): A percentage showing how much of a buyer’s income goes toward monthly debts, an important factor in loan approval.
Proof of funds: A document showing the buyer has the cash needed for their down payment or a full-cash purchase.
Financing contingency: A clause that lets the buyer back out if they can’t secure financing.

Offer, negotiation, and contract terms

Purchase agreement: The legal contract between buyer and seller that outlines the terms of the home sale.
Counteroffer: When the seller or buyer responds to an offer with a different set of terms, effectively declining the original offer and proposing a new one.
Earnest money: A deposit from the buyer showing good faith, typically 1%–3% of the purchase price, held by the escrow company.
Escalation clause: A clause in an offer stating that the buyer will outbid competing offers up to a certain amount.
Appraisal gap: The difference between the purchase price and the appraised value of the home, which the buyer may need to cover.
Seller concessions: Costs a seller agrees to pay on the buyer’s behalf, such as closing fees or repairs.
Seller credit: A financial credit applied at closing that helps the buyer offset costs — often negotiated after inspections.
Net sheet: A financial document that estimates the seller’s proceeds from a home sale after deducting all associated costs

Sisson explains that there’s one particular word that’s not on this initial set, the word “deal.”

“When agents or people in the industry refer to a transaction as a ‘deal,’ it just doesn’t sound professional to me,” he explains. “In my opinion, it cheapens the process. This is a major event for our clients, and calling it a ‘deal’ makes it sound small, almost dismissive.”

Contingency terms to watch for

Contingent: A listing status indicating the seller has accepted an offer, but the sale is still subject to certain conditions, or contingencies, being met.
Contingency: A condition that must be met for the sale to move forward. If not met, the buyer (and sometimes seller) can walk away.
Inspection contingency: Allows the buyer to cancel or renegotiate if the home inspection reveals serious issues.
Appraisal contingency: Allows the buyer to exit or renegotiate if the home appraises for less than the offer amount.
Home sale contingency: Gives the buyer time to sell their current home before finalizing the purchase.
Due diligence: A period when the buyer can investigate the property before moving forward, often tied to inspections and disclosures.

Sisson says the word “contingency” can cause confusion on both sides of the seller-buyer fence. “There’s an important distinction between waiving inspection and waiving the inspection contingency. People will say, ‘We’re going to have to waive inspection,’ but what’s really meant — in the majority of the country — is waiving the inspection contingency.”

He explains that just because a buyer waives the inspection contingency — which would typically be against a broker’s advice — doesn’t mean they shouldn’t do an inspection.

“This term means the buyer can still do the inspection, but it’s not a reason to walk away and get their deposit back if they find something seriously wrong. If the buyer decides to walk away, it will cost them their deposit because they no longer have that contingency for protection. This is a big one that I wish all buyers and sellers understood.”

Title, escrow, and closing terms

Deed vs. title: The deed is the legal document that transfers ownership; the title is the legal concept of who owns the home.
Title search: A process that verifies the seller’s legal ownership and checks for any liens or legal issues with the property.
Title insurance: Insurance that protects against future title disputes. A related term, “cloud on title,” refers to unresolved issues that could delay closing.
Escrow holder: A neutral third party that holds money and documents while all parts of the transaction are finalized. A home in this stage is “in escrow.”
Closing: The final step in the sale, during which the title is officially transferred from the seller to the buyer and all funds are disbursed.
Closing documents: The final set of legal paperwork that must be signed by both the buyer and seller to finalize the home sale transaction.
Closing escrow: Refers to the process where an escrow agent holds funds and documents until all conditions of a real estate sale are met.
Closing costs: Fees paid at closing, which may include title insurance, escrow fees, recording fees, and taxes.
Possession date: The day the buyer officially takes possession of the home, which may or may not be the same day as closing.

Sisson says home sales are inherently complex, and industry terms can be confusing, especially for first-time sellers and buyers. His advice is to partner with an experienced agent, and then clearly communicate your goals and anything that’s happening in your life that may impact those goals.

“As an agent, I try to address any possible home sale pitfall upfront, because there are so many ways we can structure things to protect a seller if they’re completely open and honest. That’s my advice — be fully transparent with your trusted agent. Share what you’re thinking, because there may be ways we can make the process easier and navigate it toward the best outcome.”

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‘Unofficial’ seller real estate terms you should know

When asked if there are any ‘unofficial’ or made-up real estate terms Sisson might include on our list, he used the phrase “emotional beats.”

Emotional beats: Something a top agent will recognize in their clients to help a home sale go smoother — the rhythm an agent can feel to anticipate what a seller or buyer wants or needs to know to have confidence and peace of mind.

“It’s something I actively do in every transaction,” Sisson says. “I share a lot of infographics so my clients always know what’s coming next — whether that’s the immediate next step in the transaction, two or three possible scenarios, or the top priorities for that day or week.”

Below is a lighthearted look at some additional unofficial real estate terms or phrases we created based on feedback from top agents like Sisson and recent home sellers. While they may be made-up, they describe what the process can feel like, especially in today’s hesitant housing market.

Final thoughts from a pro

Real estate can be full of fine print and unfamiliar terms. When in doubt, ask questions. A good agent will always take the time to explain terms clearly and help you understand how each one affects your bottom line, timeline, or legal responsibilities.

And while it’s helpful to study up, remember: you don’t have to learn a whole new language overnight. You just need to work with someone who’s fluent — and on your side.

Referring back to his coined phrase “emotional beats,” Sission adds that an expert agent will detect these rhythms in their clients and in the local market.

“There’s a lot of confusion and stress that can arise when someone is making what’s often the largest purchase of their life. That’s where the real estate agent’s role really matters — to help clients navigate through that confusion and stress.”

»Learn more: Visit HomeLight’s easy-search Seller Resource Center