adjusted basis This is the price you paid for your home plus any additions. This boosts the total cost and also lowers taxable gain on the property.

amortization The breakdown of a debt into specific, scheduled payments, including principal and interest.

appraiser A professional trained to estimate what your home is worth. An appraiser goes through your home in some detail, noting various features and the condition of the home, then compares your property with others with similar features.

bad faith bargaining This refers to someone involved in a sale who is not bargaining seriously; put another way, they don’t have any real intention of completing the transaction. Bad faith bargaining can lead to legal action if someone feels they were intentionally misled.

benefit This term refers to what an owner enjoys as a result of a home’s features, such as a good school system or room to add on to a home.

binding quote A binding quote is a price the moving company agrees to charge for your move; that price cannot change unless the terms of the move change, such as the addition of several more pieces of furniture.

bridge loan A short-term loan that lets a homeseller buy a new home before receiving the proceeds from the sale of the current home.

broom clean This term means a rather thorough house cleaning—countertops washed, bathrooms cleaned, and all garbage and remnants removed and hauled away. Usually applies to the condition of a home prior to the final walkthrough.

buyer’s broker An agent hired by a buyer to help them find a home. Without such an agreement, agents are bound to represent the seller first and foremost. With a buyer’s broker, the buyer pays half the commission in exchange for the knowledge that the agent is working on their behalf, not the seller’s.

buyer’s market A market that’s generally favorable to those shopping for a home. For instance, a large number of attractive, competitive homes can work in a buyer’s favor.

casualty loss Damage resulting from a sudden, unexpected, or unusual event, including tornados, floods, hurricanes, and ice storms.

closing The point at which real estate formally changes ownership. A variety of documents are signed by the seller and buyer. Various related charges and fees are also settled.

closing costs Various costs, fees, and other expenses connected to the final closing on a property.

comparables Short for comparable properties. Also known as “comps.” These are homes that have recently been sold and are very much like yours in terms of size, location, and features. In effect, they set the pricing parameters for your home by having preceded you in the marketplace.

competitive market analysis This study compares your home with other similar, recently sold homes to establish a target price range. The formula takes in the size of the home, location, number of bedrooms, and other amenities.

contingency A condition placed on the sale of a home.

co-op When you agree to co-op an agent, you are agreeing to give them their “cut” or their half of the commission, if they end up selling your home.

deed The legal document that conveys title to a property.

down payment A one-time payment the buyer makes toward the purchase of your house. It reduces the amount the buyer needs to finance with a mortgage.

duty to disclose This refers to material facts about your home or the neighborhood, which would not be evident to the buyer, that you are required to share. As the seller, it is your duty to make sure the buyer is aware of this information.

earnest money Money that accompanies the presentation of an offer. By including a check with an offer, a buyer is indicating she is in earnest in her desire to buy your home.

equity This refers to the difference between the market value of your home and the claims that exist against it, such as the outstanding amount of a mortgage, a home equity loan or line of credit, and other charges.

escrow A third party involved in a real estate transaction who holds funds and documents for delivery after specific conditions have been met.

escrow closing A closing where the buyer and seller do not sign at the same time. The buyer frequently does not collect proceeds from the sale on the same day.

fair market value The price a buyer will agree to pay for your home.

feature A facet of a home, such as a pool, hot tub, or even the amount of space a home contains.

FSBO For Sale By Owner.

indemnification agreement A legal document buyers and sellers sign if the seller is going to stay in the home after the closing date. In this agreement, the seller agrees to maintain the home in its current state and repair or replace anything that becomes damaged or broken during the time they possessed it.

lien This refers to any sort of legal claim that must be paid off when the property is sold. A lien can take in everything from an existing mortgage to a legal judgment against the property owner which has yet to be paid off.

listing agreement This defines various aspects of a real estate agent’s work with a seller. Details include commission rates, how long the listing will remain in place, who gets paid under various circumstances, and other information. Once signed, this is a binding contract.

mortgage banking institution A banking institution lends its own money, although it can also sell the loan later.

mortgage lender This is more of a go-between. He or she shops for loan providers and pairs them with the buyer.

mortgage payoff The amount owed on a mortgage as of the closing date.

nonbinding quote Unlike a binding quote, here a moving company provides more of an estimate. The actual charge can go higher or lower when the move actually takes place.

not-to-exceed quote A mover guarantees that the final moving cost will not exceed a certain quote and, in fact, may be lower than the quote.

prequalifying This involves various financial calculations to determine whether a particular buyer is in a financial position to afford a home. As the term suggests, it happens relatively early in the sales process rather than later. However, it doesn’t guarantee a loan—other factors such as employment and credit history figure into whether a lender will actually approve a loan.

private mortgage insurance (PMI) A form of insurance a buyer has to obtain if he cannot manage at least a 20 percent down payment. Usually tacked on to a monthly mortgage payment, the going average is between $50 to $100 a month for a median priced home. prorated amount An amount that is adjusted according to the amount of time you actually own a home. For instance, property tax bills, utility expenses, and other costs may be prorated at closing to adjust for the time of year.

purchase and sale agreement A Purchase and Sale Agreement is drawn up to cover every single term and condition that applies to the sale of a home. Depending on where you live, the document may go by a slightly different name.

purchase money mortgage This means the owner is offering financing of some sort to the buyer.

radon A radioactive gas that has been found in homes throughout the country. Naturally produced through the breakdown of uranium in the soil, it can seep into homes through cracks in the foundation and other areas. Breathing radon in sufficient quantity has been connected with lung cancer and other illnesses.

Realtor® Although both real estate agents and Realtors are trained and have to be licensed, a Realtor has taken certain training courses and shown expertise in a particular area of real estate. All Realtors are members of the National Association of Realtors and subscribe to that group’s code of ethics. Among other issues, the code pledges loyalty to clients, fiduciary honesty, and cooperation with competitors.

relos Buyers who are moving to a new city for work are called relocations, or “relos” (pronounced ree-lows) for short.

round table closing The buyer and seller sign at the same time. The seller receives sales proceeds when everything is completed.

sale-leaseback An agreement in which the buyer of a home consents to allow the former owner to remain in the home for a specified period of time beyond the official closing date. In some cases, the buyer receives a payment, similar to a rental fee, and in others, such an arrangement is part of the sale negotiation.

seller’s market These are market conditions that work in favor of those trying to sell a home.

settlement statement Also known as a HUD-1 statement, the settlement statement itemizes all funds that are payable at closing. The totals identify what you, as the seller, will receive as well as what the buyer has to pay at the closing.

special power of attorney This document transfers authority to sign at a closing when one of the parties is not available to sign. Out of town buyers often use special power of attorney.

Staging ® A registered trademark of StagedHomes.com, this describes the process of preparing a home for sale, making it as appealing as possible by cleaning, rearranging, and decorating it for maximum impact.

title This refers to the legal ownership of a piece of property.

title policy A legal guarantee of the buyer’s ownership of the property. It’s essential in case someone in the future files a legal challenge to the ownership of the property.

title report The title report identifies any liens, encumbrances, judgments, or other issues that may impact your legal capacity to transfer ownership of a piece of property.

traffic Websites count the number of people who visit their site and report it as traffic. On a home selling website, this would be the number of potential buyers who stopped by to take a look.

virtual tour An Internet-based system through which buyers visually tour a home by clicking on individual photos of a house. The virtual tour can lead a buyer through an entire house.

walkthrough The buyer and the seller walk through the home and surrounding property in as complete a fashion as possible prior to the closing. The idea is to make certain everything is the same as what was agreed to.

warranty A home warranty is a service contract purchased to protect the seller from a major household expense while the home is listed for sale and up to a year after closing. Generally, major systems like heating and air conditioning units, plumbing, and electrical, as well as appliances, are covered against breakdown.