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Introduction
Real estate has its own language. Understanding the basics will help you communicate confidently and avoid costly mistakes.
Key Terms You Should Know
- Escrow: A neutral third party that holds funds during the buying process
- Closing Costs: Fees paid during final transactions
- Contingency: Conditions in the contract that must be met
- Appraisal: An assessment of a home’s market value
- PMI: Private Mortgage Insurance, usually required for down payments < 20%
- Equity: The portion of your home you actually own
Conclusion
Learning the language of real estate is an easy step with a big payoff. Bookmark this glossary or share it with a friend buying a home in 2025.
