Real estate Keywords
ESCROW
📘 What it means:
A neutral third party that holds money and documents safely until the deal is finished.
“Like a safety box that protects everyone until the home officially changes hands.”
APPRAISAL
📘 What it means:
An official estimate of a home’s value done by a licensed professional — usually required by the bank.
“The bank’s way of double-checking that the home is really worth the price.”
CONTINGENCY
📘 What it means:
A condition that must be met before the sale can move forward — like the buyer getting a loan or the home passing inspection.
“A deal-breaker clause — if something isn’t right, the buyer can back out safely.”
PRE-APPROVAL
📘 What it means:
A letter from a lender saying how much money you can borrow to buy a home.
“It’s like getting your budget in writing — so sellers take you seriously.”
CLOSING COST
📘 What it means:
Fees you pay at the end of the sale (like loan fees, taxes, and title services).
“The extra costs you pay to officially get the keys.”
EQUITY
📘 What it means:
The difference between what your home is worth and what you still owe on it.
“How much of your home you actually own.”
EARNEST MONEY
📘 What it means:
A small deposit buyers make to show they’re serious about the offer.
“Like putting a ring on it — it shows you mean business.”
TITLE
📘 What it means:
The legal document that proves who owns the home.
“The paperwork that says: this is yours.”
LISTING
📘 What it means:
When a home is officially for sale on the market.
“A home that’s up for grabs.”
LEASE AGREEMENT
📘 What it means:
A legal contract between a landlord and tenant that explains the rules, rent, and how long the tenant can live there.
“The rental rulebook both sides agree to and sign.”
SECURITY DEPOSIT
📘 What it means:
Money paid upfront by a tenant to cover possible damages or unpaid rent.
“Extra money held just in case something gets broken — returned if everything's good.”
MAINTENANCE REQUEST
📘 What it means:
When a tenant asks the property manager to fix something in the unit.
“A formal way of saying, ‘Hey, this needs fixing.’”
TURNOVER
📘 What it means:
The time between one tenant moving out and the next one moving in — including cleaning, repairs, and prepping the unit.
“The clean-up and reset phase between renters.”
RENT ROLL
📘 What it means:
A list of all units in a property, who lives in them, and how much rent they pay.
“Your rental income cheat sheet.”
VACANCY RATE
📘 What it means:
The percentage of units that are currently empty and not earning rent.
“How many homes or apartments aren’t rented right now.”
CAPITAL EXPENDITURES (CAPEX)
📘 What it means:
Big-ticket repair or upgrade costs — like a new roof or replacing appliances.
“Major fix-it jobs that keep the property in shape long-term.”
NET OPERATING INCOME(NOI)
📘 What it means:
Total rental income minus operating expenses — before taxes and mortgage.
“Your rental profit before paying your loan.”
INSPECTION
📘 What it means:
A scheduled check of the home’s condition — done during a sale or while managing a rental.
“A professional walk-through to check that everything’s working and safe.”
LISTING AGENT VS. BUYER AGENT
📘 What it means:
Listing Agent: Represents the seller
Buyer’s Agent: Represents the buyer
“One helps sell. One helps buy. You want the one who’s on your side.”