Seller's Vocabulary: Essential Real Estate Terms

Selling your home in the Las Vegas real estate market involves its own set of terms and concepts. Familiarizing yourself with this vocabulary will empower you to understand each stage of the process and communicate effectively. Let us help you decode essential real estate terms every seller should know.

Working with Real Estate Professionals

• Listing Agent: The real estate agent who represents you, the seller, and markets your home for sale.
• Buyer's Agent: The real estate agent who represents the buyer in the transaction.
• Commission: A percentage of the home's final sale price paid to the real estate agents involved, typically paid by the seller from the proceeds of the sale.
• Competitive Market Analysis (CMA): An analysis prepared by your listing agent to estimate your home's market value based on recent sales of comparable properties in your area.

Understanding the Selling Process

• Listing: Information about your home for sale, typically including price, features, and photos, advertised through the Multiple Listing Service (MLS) and other platforms.
• Staging: Preparing your home to be more appealing to potential buyers through furniture arrangement, decluttering, and cosmetic improvements.
• Offer: A formal proposal from a buyer to purchase your property, outlining the price and terms.
• Contingency: A condition in the purchase contract that must be met for the sale to proceed. Common contingencies include buyer financing, home inspection, and appraisal.
• Counteroffer: Your response to a buyer's offer, typically proposing different terms, such as a higher price.
• Under Contract: The status of your property once you have accepted a buyer's offer and both parties have signed a purchase agreement, but before the closing is finalized.

Finalizing the Sale

• Appraisal: An assessment by a licensed appraiser to determine the fair market value of your home, often required by the buyer's lender.
• Closing Costs: Fees and expenses associated with finalizing the sale, such as title insurance, escrow fees, and recording fees, typically paid by both the buyer and seller.
• Deed: The legal document that transfers ownership of the property to the buyer at closing.
• Escrow: A neutral third party that holds funds and documents related to the sale until all conditions are met and the transaction is complete.
• Title Insurance: Insurance that protects the buyer against any future claims or disputes regarding the property's title.

Financial Terms for Sellers

• Equity: The difference between your home's current market value and the amount you still owe on your mortgage.
• Net Proceeds: The amount of money you will receive from the sale of your home after all expenses, including mortgage payoff, closing costs, and agent commissions, are deducted.