7 Common Real Estate Terms — Defined | Scott Johnson

7 Common Real Estate Terms — Defined

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If you want to enter the market or just learn more about real estate but can’t get past the jargon, worry no more! Use this guide to familiarize yourself with these common real estate terms.


Letter from a lender demonstrating their faith in your borrowing ability. Getting pre-approved is the first step to any home purchase because it gives you the best idea of what your budget should be. Plus, when you submit a pre-approval letter along with your bid, it marks your seriousness to the seller. Your ReeceNichols agent can connect you with a HomeServices Lending loan officer to get pre-approved!


Comparative Market Analysis or “comps.” Your ReeceNichols agent will use this report to help you price your home to fit the market.


Deposit buyers put down with their offer to signify their commitment. Typically 1-2 percent of the overall purchase price, your earnest money deposit will be held in escrow and, upon purchase, applied to the down payment.


The final step of a home purchase and sale. The buyers and sellers sign documents to officially transfer ownership of the home.


If you’re a buyer, ensures clear, legal ownership of the home. The professionals at Kansas City Title can help you secure title insurance to protect your purchase.


Protects and covers your appliances and other major home components, like your furnace and HVAC. Check out our exclusive Home Warranty Plus from A.B. May! If you’re a seller working with a ReeceNichols agent, you’re automatically covered during the listing period — free of charge.


Protects and covers your home in case of damages or loss. The agents at HomeServices Insurance can help you find the best policy for your specific needs.

Still have questions? No problem. Reach out to one of ouragents to get all of your questions answered!