Being well-versed in real estate terms is key to becoming a successful real estate agent. To ensure optimal professionalism and to present yourself as an expert, you must have a thorough understanding of common real estate terms and definitions. It can mean the difference between growing your real estate business and plateauing with no future leads.<\/p>\n
<\/p>\n
Abatement<\/strong>: A common legal term meaning to reduce or lessen, such as a reduction of fees.<\/p>\n Agent<\/strong>: A person, partnership, corporation or association authorized to act for and on behalf of the client.<\/p>\n Amortization<\/strong>: The payment of principal and interest of a financial obligation, made in installments.<\/p>\n Appraisal<\/strong>: An evaluation of property conducted by a licensed professional to estimate listing price based on the sale of similar properties.<\/p>\n Asset<\/strong>: Something owned that has value.<\/p>\n Buyer\u2019s Market<\/strong>: When the real estate market has more homes for sale than prospective homebuyers.<\/p>\n Capital Expenditure<\/strong>: Money spent on the improvement of a property that will increase the value.<\/p>\n Closing<\/strong>: The period in which ownership of a property is transferred to the buyer, based on the sales contract.<\/p>\n Commitment Fee<\/strong>: The fee paid to a lender for processing the mortgage.<\/p>\n Comparable<\/strong>: The process of assessing the market value of recently sold properties based on size, condition, amenities and location.<\/p>\n Contingency<\/strong>: A condition in a contract absolving a party from liability in the case a specified event occurs.<\/p>\n Conveyance<\/strong>: The transfer of title of a real property from one party to another<\/p>\n Down Payment<\/strong>: The amount of money owed by the buyer upfront to the sellers in order to purchase a property.\u00a0 The balance of the payment is made with the mortgage.<\/p>\n Equity<\/strong>: The difference between the worth of something versus the loan secured for the asset.<\/p>\n