All Real Estate Terms Articles

A buyer’s agent is a real estate professional who is legally licensed to represent the buyer’s interests in a real estate transaction. Buyer’s agents search for properties, schedule showings, and negotiate contracts on behalf of homebuyers. Plus, there is no additional cost, as the buyer’s agent receives a commission from the sale price. When buying…

Real estate economics is the application of economic principles to real estate markets. This is affected by the people involved in real estate, such as owners and developers, as well as macroeconomic forces like supply and demand. Specifically, real estate markets are affected by factors like demographics, interest rates, government policies, and the overall economy….

A leaseback, or a sale-leaseback, occurs when the seller of a home remains a renter in the property after the close of the sale. This gives sellers more time to move or provides immediate income to a real estate investor. Parties should formalize leaseback terms in an official agreement, including rent, duration, and maintenance responsibilities….

A homeowners’ association (HOA) is the organization in a planned community, subdivision, or condominium complex that maintains common areas through the creation of rules and regulations, which can help protect and improve property values. To subsidize these efforts, HOAs collect fees from homeowners that cover maintenance, landscaping, utilities, and other community expenses. An HOA’s rights…

Escrow is a state-specific process where buyers and sellers deposit documents and funds with a neutral third-party until contract conditions are met. This is commonly used in real estate transactions. After opening an escrow account, the buyer’s earnest money is deposited and parties work to meet contract requirements with oversight from the third-party escrow company….

An estate in land represents an individual’s current or future ownership interest in a piece of real estate. The four major types of estate in land are freehold, leasehold, concurrent, and equitable estates. Each type dictates specific rights that can affect a property’s overall value, such as the ability to earn income off the property….

Closing costs are the extra expenses that buyers and sellers pay on top of the purchase price at settlement of a real estate transaction. Closing costs include mortgage origination fees, discount points, appraisal fees, and more. Average closing costs on the median home sales price of $230,000 are 2 percent to 5 percent, or $4,600…