Real Estate Glossary

In an attempt to simplify your life, below is a list of real estate terms and definitions. 

The below glossary of real estate terms for investors is broken up with first BRRR Specific terms and secondly a subset of general Real Estate Terms.

Use this page as a resource throughout your investor life cycle. Searching for a term not defined here? Submit the term you wish to see in the via the comments at the bottom of the page.

 

BRRRR Specific Terms

Buy

 Buyer’s agent

Licensed real estate agent who represents the buyer throughout the home-buying process.

 

Closing costs

comprised of anywhere between 1-5% of the total purchase price of the home.

For distressed properties in Baltimore City, Maryland, investors/buyers typically pay all closing costs.

These fees are paid on or by the closing date and consist of: Application fee, Attorney fee, closing fee (escrow fee), Escrow deposit, Homeowners insurance, Lender’s title insurance, points, owner’s title insurance, origination fee, property appraisal fee, property tax, rate lock fee, real estate commissions, recording fee, survey fee, title search fee, transfer tax, and underwriting fees

 

Commission

Fee Reral Estate Agents receive helping sell or buy a home. Paid by the seller at the time of closing (5-6% of the home’s sale price), commission is usually split between the buyer’s and seller’s agents.

Comparative market analysis (CMA)

An advanced report real estate agents use to estimate the value of a specific property. The report leverages comparable homes recently sold in the same area to derive an accurate value.

Contingency

Clause in a real estate purchase agreement specifying Conditions that have to be met in order for the purchase of the home to be finalized (legally binding) or the contract can be considered null. 

For example, Home Inspection contingency: 

Offer to buy the property depends on the results of the home inspection. A buyer can cancel the sale or attempt to negotiate repairs based upon the inspection results.