Essential Real Estate Terms

If you’re looking to buy or sell a home, it’s important to understand essential real estate terms (such as appraisal, closing costs, EMD, etc.). To make it easy, the team at RISE Real Estate Consultants put together 10 of the most important terms and definitions so that you can be well informed throughout your real estate journey.

Appraisal
A professional assessment of the value of a property based on comparable sales in the area.

Closing Costs
Various fees associated with buying or selling a home. They typically include taxes and other expenses like title insurance, loan origination fees, appraisal costs, etc.

Earnest Money Deposit (EMD)
Money paid upfront by a potential buyer when making an offer on a home. It is usually held in an escrow account until closing and credited towards the purchase.

Mortgage Rate
The interest rate charged for borrowing money to buy a house.

Equity
The difference between the market value of your property and what you owe on it.

Home Inspection
A comprehensive review of a home’s condition from top to bottom by a trained professional before finalizing the sale.

Listing Price
The price that a property is offered for sale at any given time.

Principal Balance
The amount owed on a loan, not including interest or other fees/charges attached to it.

Title Insurance
A type of insurance that protects the lender and/or buyer from any legal problems related to ownership of a property.

Under Contract
When an offer on a property has been accepted by the seller, but closing has not yet occurred.

Contact us today to learn more about buying or selling a home in Rhode Island! We are here for you every step of the way, from introducing you to essential real estate terms all the way to the closing table!

James Duffer | Yvonne Sousa | Herson Martinez | Kyle Graves | Ryan Foss| David Boni |
And we can help with any inquiry you might have, covering Rhode Island, as well as Connecticut, and Massachusetts.