Home Selling Terms, Explained

What sellers need to know - pricing, listing, offers, contingencies, concessions and net proceeds.

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Listing Agreement
A listing agreement is a contract between a seller and their real estate agent, authorizing the agent to market and sell the property in exchange for a commission.
Comparative Market Analysis
A CMA is an agent-prepared report estimating a property's value by comparing it to similar recently sold, active, and pending listings in the area — commonly used to help set a listing price.
Seller Concession
A seller concession is an amount a seller agrees to contribute toward a buyer's closing costs, typically to make a deal more attractive without lowering the purchase price directly.
Closing Costs
Closing costs are the fees and expenses — beyond the down payment — required to finalize a real estate transaction, including lender fees, title insurance, taxes, and recording fees.
Home Equity
Home equity is the portion of a property's value the homeowner actually owns — the difference between what the home is worth and what's still owed on any mortgage.
Capital Gains
Capital gains are the profit made from selling a property for more than its purchase price plus improvements — potentially subject to capital gains tax, though many primary-residence sales qualify for an exclusion.

All 41 terms

  • Appraised value is a licensed appraiser's professional opinion of what a property is worth, based on comparable sales, condition, and market data — used by lenders to confirm a loan amount is justified.

  • Appreciation is an increase in a property's value over time, driven by market conditions, inflation, local demand, or improvements made to the property.

  • An as-is sale means the seller won't make repairs or credits for any issues found during inspection — the buyer accepts the property in its current condition, though they typically can still inspect and walk away under a contingency.

  • Assessed value is a local government's estimate of a property's worth, used to calculate property taxes — often lower than market value and updated on its own schedule, not tied to a sale.

  • An AVM is a software-based estimate of a property's value generated from public records, tax data, and recent comparable sales — fast and free, but less precise than a licensed appraisal.

  • A bumpable buyer has a contract contingent on selling their current home, but with a "bump" (kick-out) clause that lets the seller keep marketing the property and accept a stronger, non-contingent offer if one comes along — bumping the first buyer unless they remove their contingency within a set window.

  • A buyer's market occurs when available inventory outpaces buyer demand, typically giving buyers more negotiating power, longer days on market, and more price flexibility from sellers.

  • ClosingBasic

    Closing is the final step of a real estate transaction, where the buyer signs loan documents, funds are disbursed, the deed is recorded, and ownership officially transfers to the buyer.

  • Closing costs are the fees and expenses — beyond the down payment — required to finalize a real estate transaction, including lender fees, title insurance, taxes, and recording fees.

  • Comparable sales, or "comps," are recently sold properties similar in location, size, condition, and features to a subject property, used to estimate its value.

  • A CMA is an agent-prepared report estimating a property's value by comparing it to similar recently sold, active, and pending listings in the area — commonly used to help set a listing price.

  • A contingent listing has an accepted offer, but the sale still depends on one or more contingencies — such as inspection, financing, or appraisal — being satisfied.

  • "CTG" is the MLS status abbreviation for "Contingent" — a listing with an accepted offer that still depends on one or more contingencies, such as inspection, financing, or appraisal, being satisfied.

  • Curb appeal is how attractive a property looks from the street — landscaping, exterior condition, and first impression — often the first factor influencing a buyer's interest before they even step inside.

  • Days on market is the number of days a property has been actively listed for sale, from listing date to going under contract — a key indicator of how a property is performing relative to the local market.

  • Depreciation is a decrease in a property's value over time — from market conditions or physical wear — or, for investors, a tax deduction that spreads a rental property's cost over its useful life.

  • End BuyerAdvanced

    In a wholesale real estate deal, the end buyer is the final purchaser — typically an investor or owner-occupant — who buys the property from the wholesaler, as opposed to the wholesaler who briefly controls the contract in between.

  • FSBO describes a home sale where the seller lists and markets the property directly, without hiring a listing agent — potentially saving on listing-side commission, but taking on the agent's pricing, marketing, and negotiation work themselves.

  • Home equity is the portion of a property's value the homeowner actually owns — the difference between what the home is worth and what's still owed on any mortgage.

  • Home staging is preparing a property for sale by arranging furniture, décor, and layout to appeal to the widest range of buyers, typically to help it sell faster and for a stronger price.

  • iBuyerBasic

    An iBuyer is a company that uses automated valuation and quick due diligence to make a cash offer directly on a home, often closing in days rather than weeks — trading a typically lower sale price for speed and certainty.

  • An "in lieu of repairs" credit or cash payment is money a seller gives a buyer at closing instead of actually performing repairs identified during inspection, letting the buyer handle the work themselves after closing.

  • A listing agreement is a contract between a seller and their real estate agent, authorizing the agent to market and sell the property in exchange for a commission.

  • Listing price is the price at which a property is offered for sale — a starting point for negotiation, which may end up higher or lower than the final sale price.

  • Market value is the price a property would likely sell for in the current market, given normal conditions and a willing buyer and seller — distinct from appraised value or assessed value, which are formal estimates for specific purposes.

  • Net proceeds are what a seller actually walks away with after a sale, once the sale price is reduced by the mortgage payoff, agent commissions, closing costs, and any seller concessions.

  • A UK property listing marked "no onward chain" means the seller isn't simultaneously buying another property to move into, so the sale doesn't depend on — and can't be delayed by — a purchase further up their own chain.

  • PendingBasic

    A pending listing has an accepted offer with all contingencies satisfied, moving toward closing — typically the last status before a sale is finalized.

  • Price per square foot is a property's price divided by its total livable square footage, used to compare properties of different sizes within the same market.

  • Pro RataAdvanced

    Pro rata means dividing a shared cost or income proportionally — based on ownership percentage, square footage, or time — rather than splitting it equally.

  • ProrationsIntermediate

    Prorations are the day-by-day splitting of costs — like property taxes, HOA dues, or rent — between a buyer and seller at closing, based on how many days each party actually owned the property during the billing period.

  • A right of first refusal gives a specific party — often a tenant, co-owner, or neighbor — the option to match any offer a seller receives before the seller can sell to someone else.

  • Sale price is the final, agreed-upon price a buyer and seller settle on for a property, which becomes part of the public record and future comparable sales data.

  • A seller's agent, or listing agent, represents the seller's interests — pricing the home, marketing it, and negotiating with buyers on the seller's behalf.

  • Seller ConcessionIntermediate

    A seller concession is an amount a seller agrees to contribute toward a buyer's closing costs, typically to make a deal more attractive without lowering the purchase price directly.

  • A reverse contingency flips the usual arrangement: instead of the buyer's purchase depending on selling their own home, the seller's ability to close depends on finding and closing on their own replacement property.

  • A seller's disclosure is a legally required document where a seller reports known material defects or issues with a property, such as past water damage, structural problems, or environmental hazards.

  • A seller's market occurs when buyer demand outpaces available inventory, typically leading to higher prices, faster sales, and less room for buyer negotiation.

  • Settlement is another term for closing — the final step in a real estate transaction where ownership legally transfers and remaining funds are exchanged.

  • Short SaleIntermediate

    A short sale is a sale where the lender agrees to accept less than the full mortgage balance owed, allowing a financially distressed homeowner to sell and avoid foreclosure — the lender must approve the sale price and terms in advance.

  • A property under contract has a legally binding purchase agreement in place between buyer and seller, though the sale hasn't closed yet.

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Definitions are provided for general educational purposes and are not financial, legal, tax, or real estate advice. Rules vary by transaction and location - verify important decisions with qualified professionals.