Much of the terminology associated with real estate can leave buyers and sellers confused and anxious, especially when navigating contracts without the representation of a professional agent. 

To aid in understanding, the following is part one of a basic list of common real estate terms: 

  1. Appraisal - A third-party estimate of the value of a property, mostly based upon comparable sales of surrounding homes.
  2. Assessment - The taxable value placed upon a property.
  3. BPO - Broker price opinion, a written opinion of fair-market value as given by a real estate broker. 
  4. Closing Costs - A term referring to all of the costs associated with borrowing a mortgage to purchase a property, including both non-recurring costs and pre-paid items. 
  5. Contingency - In a Real Estate Purchase Contract (REPC), a contingency modifies the terms so as to allow the contract to be legally binding only if certain conditions are met. 
  6. Earnest money - Money offered by the buyer to show that he/she is serious about purchasing the home.
  7. Escrow - A third-party responsible for securing an item or document of value until all conditions of the contract are met. 

Stick around next week for part two of common real estate jargon!

Source: http://www.realestateabc.com/glossary/