Buying
Preapproval
A lender’s early review of your income, assets, credit, and debts that estimates how much you may be able to borrow. It is stronger than a casual prequalification.
Buyer guidance →Real estate, in plain English
Terms that make the next move clearer.
A practical glossary for buyers, sellers, and homeowners navigating Sacramento, El Dorado, and Placer Counties.
A clearer conversation
Search the terms you keep hearing.
Use the search box or choose a topic. Definitions are intentionally straightforward; for legal, tax, or lending advice, confirm details with the appropriate licensed professional.
Buying
Earnest money
A deposit submitted with an offer to show serious intent. It is usually held in escrow and credited toward your purchase at closing, subject to the contract.
Buyer Roadmap →Buying
Contingency
A contract condition that must be satisfied before a buyer is fully committed, such as financing, appraisal, inspection, or the sale of another home.
FAQ Center →Buying
Comparative market analysis (CMA)
An opinion of value based on recent, similar properties and current competition. A CMA helps inform a buyer’s offer or a seller’s pricing strategy.
Seller Services →Buying
Escrow
A neutral process that holds funds and documents while the parties complete the contract’s requirements. Escrow closes when the transaction is ready to record.
Buyer Roadmap →Buying
Closing costs
Expenses beyond the purchase price, which may include lender fees, title charges, escrow fees, recording, prepaid taxes, and insurance.
FAQ Center →Buying
Title insurance
Protection against covered title problems from the past, such as undisclosed liens, ownership claims, or recording errors.
FAQ Center →Buying
Appraisal
An independent opinion of value ordered by a lender to support the loan. An appraisal is not the same as a home inspection.
Buyer Roadmap →Buying
Down payment
The portion of the purchase price paid from the buyer’s funds or approved assistance rather than borrowed through the mortgage.
Buyer tools →Selling
Listing agreement
The written agreement that sets the relationship, services, compensation, term, and expectations between a seller and a real estate broker.
Seller Roadmap →Selling
Net sheet
An estimate of what a seller may receive after the expected sale price, loan payoff, commissions, taxes, escrow, and other transaction costs.
Home Value →Selling
Days on market (DOM)
The number of days a property has been actively listed before going under contract or closing. It is useful context, not a verdict on value.
Market Stats →Selling
Absorption rate
An estimate of how quickly available homes are selling at the current pace. Lower months of supply generally indicate stronger seller leverage.
Market Stats →Selling
Seller disclosure
Information a seller provides about known conditions, repairs, hazards, and material facts. Disclosure duties depend on the facts and applicable law.
Seller FAQs →Selling
Staging
Preparing a home’s presentation, layout, and furnishings to help buyers understand its spaces and imagine living there.
Seller Roadmap →Selling
Equity
The estimated value of a property minus the debts secured by it. A sale’s costs and payoff figures determine how much equity is actually available.
EquityMAX →Financing
Annual percentage rate (APR)
A broader measure of borrowing cost that includes the interest rate and certain loan fees. Compare APRs alongside the loan’s terms and payment.
Buyer tools →Financing
Loan Estimate
A standardized form from a lender showing projected rate, payment, closing costs, and other loan terms after you apply.
FAQ Center →Financing
Debt-to-income ratio (DTI)
The percentage of gross monthly income committed to recurring debt payments. Lenders use DTI as one factor in evaluating repayment ability.
Buyer guidance →Financing
Discount points
Upfront fees paid to a lender in exchange for a lower interest rate. Whether points make sense depends on the loan and how long you expect to keep it.
FAQ Center →Financing
Mortgage insurance
Insurance that may protect a lender when a loan has a smaller down payment. Cost and cancellation rules vary by loan program.
Buyer tools →Inspections
Home inspection
A visual review of accessible systems and components by a qualified inspector. It helps identify condition and maintenance questions; it is not a guarantee.
Inspection FAQs →Inspections
Sewer lateral inspection
A focused evaluation of the private sewer line from the property toward the public connection. Local requirements and responsibility can vary.
Inspection FAQs →Inspections
Termite inspection
An inspection for wood-destroying organisms and related damage. The report may separate active work from recommended or preventive work.
Inspection FAQs →Inspections
Repair credit
A negotiated credit from a seller toward allowable buyer closing costs or prepaid items instead of completing selected repairs before closing.
Buyer Roadmap →Inspections
“As-is”
A term signaling that a property is offered in its current condition. It does not erase disclosure duties or prevent a buyer from conducting due diligence.
FAQ Center →California
Prop 19
California’s property-tax rules include provisions for eligible homeowners who move and for certain parent-child or grandparent-grandchild transfers. Eligibility and filing deadlines matter.
Prop 19 FAQs →California
California FAIR Plan
A basic property-insurance option of last resort for eligible California properties when coverage is not reasonably available in the standard market.
Insurance FAQs →California
Mello-Roos
A special tax used by some California community facilities districts to fund public facilities or services. Check the tax bill and disclosures for a specific property.
Seller FAQs →California
Documentary transfer tax
A tax collected when an interest in real property transfers. The amount and customary allocation can depend on the county and contract.
FAQ Center →California
Supplemental property tax
A prorated tax bill that can follow a change in ownership or new construction when the assessed value changes between regular tax cycles.
FAQ Center →Distressed sales
REO (real estate owned)
A property owned by a lender or other institution after an unsuccessful foreclosure sale. REO listings are typically sold through a conventional listing process.
Seller Roadmap →Distressed sales
Foreclosure
A legal process a lender may use to recover a debt when a borrower defaults. Timing, notices, and available options depend on the loan and local law.
Distressed-sale FAQs →Distressed sales
Short sale
A sale in which expected proceeds are less than the debt and selling costs, requiring the lender or lienholders to approve the transaction.
Seller Roadmap →Distressed sales
Trustee sale
A public foreclosure auction conducted under a deed of trust after required notices and waiting periods. Buyers should understand the risks and rules before bidding.
FAQ Center →Distressed sales
Notice of default
A recorded notice that a borrower is in default under a deed of trust. It is an important milestone, not the same as a completed foreclosure.
FAQ Center →Buying
Offer
A buyer’s proposed price and terms for purchasing a property. The strongest offer is the one that best fits the seller’s priorities, not always the one with the highest price.
Buyer Roadmap →Selling
List price
The advertised starting price for a property. It is a strategy based on market evidence, competition, condition, timing, and the seller’s goals.
Home Value →Buying
Market value
The price a property might reasonably command in an open, informed market at a particular time. Value changes with condition, supply, demand, and terms.
Market Stats →Selling
Seller’s market
Market conditions where demand is strong relative to available homes, often giving well-positioned sellers more leverage and faster decisions.
Market Stats →Buying
Buyer’s market
Market conditions where buyers have more choices relative to demand, which may create more room to compare, negotiate, and request terms.
Market Stats →Buying
Multiple Listing Service (MLS)
A professional listing database that helps participating real estate brokers share property information, status, and showing details.
Past Sales →Selling
Open house
A scheduled opportunity for multiple prospective buyers to tour a home. It is one part of a broader exposure and showing strategy.
Seller Roadmap →Buying
Closing
The final stage when required funds and documents are complete, the transfer records, and the buyer receives possession under the contract.
Buyer Roadmap →Buying
Deed and title
The deed is the document used to transfer ownership; title describes the legal ownership interest and history connected to the property.
FAQ Center →Selling
Agency and representation
The relationship that defines whom a real estate professional represents and what duties, services, and disclosures apply to that relationship.
FAQ Center →Buying
Dual agency
A situation in which the same brokerage or licensee represents both sides of a transaction, subject to required disclosure and consent.
FAQ Center →Selling
Counteroffer
A response that changes or adds terms to an offer. Once accepted and delivered as required, the contract’s terms govern the transaction.
Seller Roadmap →Buying
Multiple offers
When a seller receives more than one offer, the decision may weigh price, financing, contingencies, timing, certainty, and overall fit.
Buyer Roadmap →Buying
Backup offer
An offer accepted as a secondary position if the first contract ends. It can keep a buyer in line without guaranteeing the property will become available.
Buyer Roadmap →Selling
Price reduction
A deliberate change to the asking price intended to improve the property’s position, generate attention, or respond to market feedback.
Seller Roadmap →Selling
Move-up or downsizing sale
A sale shaped by the seller’s next move, such as buying more space, simplifying, relocating, or coordinating two timelines.
Seller Services →Financing
Fixed-rate mortgage
A mortgage whose interest rate is set for the agreed term, making principal and interest payments more predictable than an adjustable rate.
Buyer guidance →Financing
Adjustable-rate mortgage (ARM)
A mortgage whose rate can change under defined rules after an initial period. Review caps, adjustment dates, and worst-case payments with a lender.
FAQ Center →Financing
Principal, interest, taxes, and insurance (PITI)
A common shorthand for the core components of a monthly housing payment. HOA dues and other costs may be separate.
Buyer tools →Financing
Cash to close
The estimated amount a buyer must bring to closing after the down payment, credits, deposits, prepaid items, and closing costs are accounted for.
Buyer Roadmap →Financing
Lender credit
Money from a lender that can offset certain closing costs, typically in exchange for a higher interest rate or different loan terms.
FAQ Center →Financing
Loan-to-value ratio (LTV)
The loan amount compared with the property’s value or purchase price. LTV can affect rate, mortgage insurance, and qualification.
Buyer guidance →Inspections
Due diligence
The buyer’s period for reviewing property condition, documents, neighborhood factors, financing, and other contract items before deadlines expire.
Buyer Roadmap →Inspections
Disclosure package
A collection of seller-provided and third-party documents that may describe condition, repairs, hazards, reports, and material facts.
Seller FAQs →Inspections
Natural Hazard Disclosure (NHD)
A report that identifies certain mapped hazards or special zones associated with a property. It supports informed review but is not a substitute for every investigation.
FAQ Center →Inspections
Roof inspection
A focused review of visible roof components and likely remaining life. A specialist may be appropriate when age, condition, or findings warrant it.
Inspection FAQs →Inspections
Mold inspection
An evaluation for moisture conditions or suspected microbial growth. Testing and remediation decisions should be guided by qualified specialists.
Inspection FAQs →Selling
Home warranty
A service contract that may cover repair or replacement of specified home systems and appliances, subject to its exclusions, limits, and fees.
FAQ Center →California
Homeowners association (HOA)
An organization that manages shared amenities, rules, maintenance, and assessments in a planned community or condominium project.
FAQ Center →California
HOA resale package
Documents and information about an association’s finances, rules, assessments, insurance, and notices that a buyer may review before purchasing.
Buyer Roadmap →California
Property-tax reassessment
A change in assessed value after events such as a purchase or new construction. The county assessor determines the taxable value under California rules.
FAQ Center →Distressed sales
Loan modification
A change to loan terms intended to make payments more manageable. A homeowner should contact the servicer early and watch for scams.
Distressed-sale FAQs →Distressed sales
Forbearance
A temporary pause or reduction in payments authorized by a servicer. Missed amounts are generally not forgiven and require a documented repayment plan.
FAQ Center →Distressed sales
Equity sale
A conventional sale where expected proceeds can pay off liens, costs, and the seller’s obligations, leaving any remaining equity for the seller.
Home Value →Selling
Seller proceeds
The estimated funds remaining after the sale price is reduced by payoffs, commissions, taxes, escrow charges, credits, and other closing expenses.
Home Value →Want the term explained in your situation?
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