SILICON VALLEY REAL ESTATE

• Appraisal – An independent estimate of a property’s market value, usually ordered by a lender.
  
• Amortization – The gradual repayment of a mortgage loan through scheduled installments of principal and interest.
  
• Adjustable-Rate Mortgage (ARM) – A mortgage with an interest rate that changes periodically based on market conditions.

• Broker – A licensed real estate professional who can represent clients and manage agents.
  
• Balloon Payment – A large final payment due at the end of a loan, often after lower monthly installments.
  
• Buyer’s Agent – An agent who represents the interests of the buyer in a transaction.

• Closing – The final step of a transaction when ownership transfers and funds are distributed.
  
• Closing Costs – Fees and expenses (lender fees, escrow fees, title insurance, taxes) paid at closing.
  
• Contingencies – Contractual conditions that must be met for a deal to close (e.g., financing, inspection, appraisal).
  
• Comparable Sales (Comps) – Recently sold properties used to estimate a property’s value.
  
• Commission – Payment to real estate agents, usually a percentage of the sale price.

• Deed – A legal document transferring ownership of property.
  
• Disclosures – Required statements from the seller about known issues with a property (e.g., defects, hazards).
  
• Debt-to-Income Ratio (DTI) – A borrower’s monthly debt obligations compared to their gross monthly income.
  

• Escrow – A neutral third party that holds funds and documents until contract terms are met.
  
• Earnest Money Deposit (EMD) – A buyer’s deposit showing good faith, held in escrow until closing.
  
• Equity – The difference between the property’s value and what is owed on the mortgage.
  

• Foreclosure – Legal process where a lender repossesses a property due to missed payments.
  
• Fixed-Rate Mortgage – A loan with an interest rate that remains the same for the term.
  
• Fair Market Value (FMV) – The price a willing buyer and seller would agree upon in an open market.
  

• Grant Deed – A type of deed that transfers ownership and provides limited guarantees of clear title.
  
• Gross Rent Multiplier (GRM) – A valuation method comparing property price to rental income.
  
• Good Faith Estimate (GFE) – An itemized list of loan-related fees provided by a lender.
  

• HOA (Homeowners Association) – An organization that sets rules and collects fees for a community.
  
• Home Inspection – A professional evaluation of a property’s condition.
  
• Home Warranty – A service contract covering repairs on major systems and appliances.
  

• Inspection Contingency – A clause allowing the buyer to back out if inspections reveal significant issues.
  
• Interest Rate – The percentage charged by a lender for borrowing money.
  
• Investment Property – Real estate purchased to generate rental income or appreciation.
  

• Joint Tenancy – Co-ownership where surviving owners automatically inherit a deceased owner’s share.
  
• Judicial Foreclosure – A foreclosure process handled through the courts.
  
• Jumbo Loan – A mortgage that exceeds the limits set by Fannie Mae and Freddie Mac.
  

• Key Money – A fee sometimes paid to secure a lease, especially in commercial real estate.
• Kick-Out Clause – A seller’s clause allowing them to continue marketing their property after accepting a contingent offer.
  

• Lien – A legal claim against a property for unpaid debt.
  
• Listing Agreement (Residential Listing Agreement) – A contract between a seller and a broker giving the broker the right to market and sell the property.
  
• Loan-to-Value Ratio (LTV) – A lender’s comparison of the loan amount to the property’s appraised value.
  

• Mortgage – A loan used to finance the purchase of real estate.
  
• Multiple Listing Service (MLS) – A database of properties listed for sale, accessible to real estate professionals.
  
• Market Value – The most probable price a property would sell for under normal conditions.
  

• Net Operating Income (NOI) – Rental income minus operating expenses (before mortgage payments).
  
• Note (Promissory Note) – A written promise to repay a loan under agreed terms.
  
• Negotiation – The process of reaching mutual agreement on the terms of a deal.
  

• Offer – A formal proposal from a buyer to purchase a property.
  
• Open House – A scheduled time when a property is available for prospective buyers to tour.
  
• Owner Financing – When the seller finances the purchase instead of a bank.
  

• Pre-Approval – A lender’s written confirmation of how much a buyer qualifies to borrow.
  
• Property Taxes – Taxes levied by local governments based on property value.
  
• Purchase Agreement (Residential Purchase Agreement) – A legally binding contract outlining the terms of a real estate sale.

• Quitclaim Deed – A deed transferring any ownership interest without guaranteeing clear title.
  
• Qualifying Ratios – Income and debt calculations lenders use to determine loan eligibility.

• Refinancing – Replacing an existing loan with a new one, usually for better terms.
  
• Real Property – Land and anything permanently attached to it.
  
• Recording – Filing real estate documents with the county to make them part of public record.

• Short Sale – A property sold for less than what is owed on the mortgage, with lender approval.
  
• Survey – A professional measurement of land to establish boundaries.
  
• Seller’s Agent (Listing Agent) – A real estate agent who represents the seller.
  

• Title – Legal ownership of property.
  
• Title Insurance – Insurance protecting against defects in title or ownership claims.
  
• Tenancy in Common – Co-ownership where owners may have unequal shares and no right of survivorship.
  

• Underwriting – The lender’s process of evaluating risk before approving a mortgage.
  
• Uniform Residential Loan Application (URLA) – The standard form for applying for a mortgage.
  
• Utilities – Services such as electricity, water, and gas needed for property use.
  

• Vacancy Rate – The percentage of unoccupied rental units in a property or market.
  
• Variable Interest Rate – An interest rate that fluctuates with the market.
  
• VA Loan – A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans.
  

• Warranty Deed – A deed guaranteeing the seller holds clear title and has the right to sell.
  
• Walk-Through – A final inspection by the buyer before closing to ensure the property’s condition.
  
• Withholding Tax – Taxes withheld from real estate proceeds, sometimes required for foreign sellers.
  

• Xeriscaping – Landscaping designed to reduce water use, common in arid areas.
• “X-Date” – Industry shorthand for expiration date of an insurance policy (important in investment deals).
  

• Yield – The return on an investment property, expressed as a percentage.
• Year-to-Date (YTD) Income – Income earned from January 1 to the current date, often reviewed in lending.
  

• Zoning – Local government rules that regulate land use (residential, commercial, industrial, etc.).
  
• Zero Lot Line – A property where a structure is built right up to the edge of the lot line.
  
• Zestimate – Zillow’s automated home value estimate (not an appraisal).