Don’t worry, though, it doesn’t have to be that way. Now you can be a master of real estate lingo! Here you will find the most commonly asked about terms, as well as information to help you navigate the Central Ohio real estate market.
Active Listing – A property listing that is active and available on the MLS, as opposed to a Pending or Contingent listing, which may already be under contract.
Appraisal – The written explanation of a property’s fair market value. This is often based on comparable home sales in the area.
Appreciation – The increase in a home’s value. It is based predominately on inflation and market conditions.
Buyer’s Market – A buyer’s market occurs when there are more sellers than buyers. Too many homes on the market without enough buyers causes lower prices because homes are harder to sell. In Columbus, Ohio real estate, more than 6 months of housing inventory is considered a Buyer’s Market.
Contingent – When a property listing is marked Contingent, the home seller has accepted an offer, but there may still be provisions that must be met.
Conventional Loan – A loan that is not insured or guaranteed by the government.
Deed – A written document for a title to real estate to be conveyed from one party to another.
Due Diligence – Taking time before signing a contract to research, analyze, and gather information about a property. In real estate, a home buyer’s Due Diligence Period gives a set number of days after their offer has been accepted by the home seller to have inspections completed.
Due Diligence Fee – An amount of money paid by the home buyer directly to the home seller. This money is the seller’s to keep. If the deal closes, the money will be credited back to the buyer. If the buyer backs out, the home seller keeps the Due Diligence Fee.
Earnest Money – Money given by a home buyer to the home seller (or seller’s agent) to show good faith when making an offer to purchase.
Escrow – A bond, deed, or other document kept in the custody of a third party, taking effect only after a specified condition has been fulfilled.
FHA Loan – Federal Housing Administration mortgage insurance which is provided by an FHA-approved lender. An FHA loan enables qualifying home buyers to borrow money for the purchase of a home that they would not otherwise be able to afford.
HOA – An HOA is the abbreviation for Home Owners Association.
HOA Dues – The fees paid by home owners to a Home Owners Association to cover the cost of community-wide maintenance, disaster insurance, or amenities.
Home Inspection – A limited observation of a home made prior to purchasing and paid for by the home buyer that includes any areas needing improvement or attention before closing.
Homeowners Insurance – The type of property insurance covering a private residence.
HUD – The Department of Housing & Urban Development
Mortgage – A legal document promising a property to the lender as collateral for payment of a debt.
Multiple Listing Service (MLS) – The database used by real estate professionals to list and find homes currently available for sale. The CBRMLS is Central Ohio’s database of homes currently listed for sale.
Pending Listing – A real estate listing on the MLS that is pending sale. The home seller has accepted an offer and all contingencies have been addressed. A Pending home is no longer Active.
PITI – This stands for Principal, Interest, Taxes, and Insurance, and it is usually a monthly payment on a mortgage to a lender. It is also used to pre-qualify a buyer.
Pocket Listing – A home for sale that is not listed on the MLS. AKA: Quiet Listing, Off Market Listing
Points – A fee paid up front to the mortgage lender at closing to lower the interest rate over the life of the loan. Also known as discount points or purchase points.
Realtor – A person who is a member of the National Association of REALTORS® who acts as an agent for the sale or purchase of homes and land.
Seller’s Market – A sellers’s market occurs when there are more buyers than sellers. A low inventory of homes on the market results in higher prices as buyers clamor to buy the low number of homes that are available for sale. In Columbus, Ohio real estate, less than 3 months of housing inventory is considered a Seller’s Market.
Staging – Preparing a home for the real estate market to improve its appeal to potential home buyers.
Under Contract – When the home seller has accepted an offer from a buyer, the home is Under Contract.
VA Loan – A home mortgage loan issued by qualified lenders guaranteed by the U.S. Department of Veterans Affairs.
If you have a real estate word or phrase you need to understand better, contact me, REALTOR® Rita Boswell at 614-547-3229. I love talking with home buyers and sellers, and helping them to better understand the Columbus, Ohio real estate market.
I’m Here To Be Your Guide & Advocate
Columbus area real estate transactions can be a challenge if you don’t understand the landscape. Whether you are buying your dream home or selling your current property to downsize, you’ll need an experienced and knowledgeable Central Ohio real estate expert at your side.
With many years of experience in Columbus, Ohio real estate, I have the expertise and industry-leading resources to help you reach your real estate goals. But, don’t just take my word for it. My reputation speaks for itself in the many rave reviews, testimonials, and recommendations I have received over the years. Read what my clients are saying here: ritaboswellgroup.com/reviews