Knowledge is power

General Real Estate Terms (for Everyone)

Listing – A property that’s for sale and advertised by a real estate agent.
MLS (Multiple Listing Service) – A system agents use to share and find property listings.
Appraisal – A professional estimate of how much a property is worth.
Escrow – A third party that holds money or documents until the transaction is complete.
Closing – The final step in a real estate deal where documents are signed and ownership transfers.
Earnest Money – A deposit made by a buyer to show they’re serious about buying the home.
Contingency – A condition in a contract that must be met (for example, inspection or appraisal).
Title – Legal ownership of a property.
Deed – A legal document that transfers ownership from seller to buyer.
Down Payment – The amount of money a buyer puts down upfront, separate from the loan.
Equity – The difference between what your home is worth and what you still owe on it.

Pre-Approval – A lender confirms how much you can borrow based on your finances.
Option Period – A negotiated time when a buyer can cancel the contract for any reason.
Inspection – A review of the home’s condition by a licensed professional.
Loan Estimate – A breakdown of costs from the lender, including interest rate and closing costs.
PMI (Private Mortgage Insurance) – Extra insurance if you put down less than 20%.
Closing Costs – Fees paid at closing, such as loan fees, title insurance, and taxes.

Listing Agreement – A contract between a seller and their real estate agent.
Net Sheet – A breakdown of how much the seller will take home after fees and mortgage payoff.
Seller Concessions – Costs the seller agrees to pay to help close the deal (for example, closing costs).
Home Staging – Preparing and decorating a home to appeal to buyers.
CMA (Comparative Market Analysis) – A report showing what similar homes have sold for nearby.
Days on Market (DOM) – How long a home has been listed for sale.

Lease Agreement – A contract between a tenant and landlord outlining rent, terms, and rules.
Security Deposit – Money held to cover potential damage; returned if the property is left in good condition.
Renters Insurance – Insurance that protects a tenant’s belongings.
Maintenance Request – A formal request to fix something in the rental unit.
Sublease – When a tenant rents out the space to someone else (often requires landlord approval).
Notice to Vacate – A written notice given before ending a lease.

Tenant Screening – Reviewing an applicant’s credit, rental history, and background.
Lease Renewal – Extending the rental agreement for another term.
Eviction – Legal removal of a tenant for violating the lease (such as non-payment or damage).
Property Management – A company or person hired to manage the rental property.
Rental Income – Money earned from renting out a property.
Security Deposit Accounting – A detailed return or withholding of a tenant's deposit.

ARV (After Repair Value) – What the home is expected to sell for after renovations.
BRRRR Method – Buy, Rehab, Rent, Refinance, Repeat – a common investor strategy.
Hard Money Loan – A short-term loan often used by flippers, based on property value more than credit.
Cap Rate – Return on investment for rental properties, expressed as a percentage.
Cash Flow – The money left over after paying all expenses on an investment property.
Wholesale Deal – Buying a property below market value and assigning the contract to another buyer.

TREC – Texas Real Estate Commission; regulates real estate in Texas.
Amendment – A written change made to an existing contract.
Addendum – An additional document that becomes part of the contract.
Disclosure – Required information the seller must provide about the condition of the home.
Default – Failing to meet a legal obligation in the contract.
Mediation – A way to resolve disputes before going to court.