Understand the terms used in home buying and selling. Our comprehensive glossary covers everything from appraisals to zoning, tailored for Central Valley homeowners.
A professional assessment of a property's market value conducted by a licensed appraiser. Lenders require appraisals before approving a mortgage to ensure the property is worth the loan amount. In Fresno, appraisals typically cost $400-$600.
Home Value ToolA property sale where the seller makes no repairs or improvements before closing. The buyer accepts the property in its current condition. Cash buyers like Skyline REI Group specialize in as-is purchases, saving sellers thousands in repair costs.
Sell Your Home As-IsThe value assigned to a property by the county assessor for property tax purposes. In California, assessed value is based on the purchase price (Proposition 13) and increases by no more than 2% annually unless the property changes ownership.
A real estate agent who represents the buyer in a transaction. The buyer's agent helps find properties, negotiate offers, and navigate the closing process. Their commission is typically 2.5-3% of the sale price.
A tax on the profit from selling an asset, including real estate. Homeowners can exclude up to $250,000 (single) or $500,000 (married) in capital gains from the sale of their primary residence if they've lived there for at least 2 of the last 5 years.
A purchase offer made without mortgage financing. Cash offers are attractive to sellers because they eliminate financing contingencies, appraisal requirements, and typically close much faster — often in 5-14 days versus 30-60 days for financed purchases.
Get a Cash OfferA property title free of liens, encumbrances, or legal questions about ownership. A clear title is required for a property to be sold. Title companies conduct searches to verify clear title before closing.
Fees and expenses paid at the completion of a real estate transaction. For sellers in California, closing costs typically range from 6-10% of the sale price, including agent commissions, escrow fees, title insurance, and transfer taxes.
Understanding Closing CostsThe date when the property sale is finalized, ownership transfers, and funds are disbursed. In traditional sales, closing typically occurs 30-60 days after the offer is accepted. Cash sales can close in as few as 5 days.
Recently sold properties similar to the subject property in location, size, condition, and features. Comps are used by appraisers and real estate professionals to determine a property's fair market value.
A condition in a purchase contract that must be met before the sale can proceed. Common contingencies include financing, inspection, and appraisal. Cash offers typically have fewer contingencies, making them more attractive to sellers.
A legal document that transfers ownership of real property from one party to another. In California, the most common types are grant deeds and quitclaim deeds. The deed is recorded with the county recorder's office after closing.
The portion of the purchase price paid upfront by the buyer, not covered by the mortgage. Conventional loans typically require 5-20% down, FHA loans require 3.5%, and VA loans may require 0% down for eligible veterans.
Mortgage CalculatorThe investigation and research a buyer conducts before purchasing a property. This includes home inspections, title searches, reviewing disclosures, and verifying property details. Due diligence protects buyers from unexpected issues.
A deposit made by the buyer to demonstrate serious intent to purchase. Typically 1-3% of the purchase price, earnest money is held in escrow and applied to the purchase price at closing. If the buyer backs out without a valid contingency, they may forfeit this deposit.
The difference between a property's market value and the amount owed on the mortgage. For example, if your Fresno home is worth $380,000 and you owe $200,000, you have $180,000 in equity. Equity increases as you pay down the mortgage and as property values appreciate.
A neutral third party that holds funds and documents during a real estate transaction. The escrow company ensures all conditions of the sale are met before releasing funds to the seller and the deed to the buyer.
The price a property would sell for on the open market under normal conditions, with both buyer and seller acting knowledgeably and without pressure. FMV is determined by comparable sales, property condition, location, and market conditions.
Get Your Home ValueA mortgage insured by the Federal Housing Administration, designed for first-time and lower-income homebuyers. FHA loans require as little as 3.5% down payment and have more flexible credit requirements than conventional loans.
First-Time Homebuyer GuideThe legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments. In California, foreclosure typically takes 4-6 months. Homeowners facing foreclosure have alternatives, including selling to a cash buyer.
Foreclosure AlternativesA thorough examination of a property's condition by a licensed inspector. Inspections typically cover the roof, foundation, electrical, plumbing, HVAC, and structural components. In Fresno, home inspections cost $300-$500.
An organization that manages and maintains common areas in a planned community or condominium complex. HOAs charge monthly or annual dues and enforce community rules (CC&Rs). HOA fees in Fresno typically range from $50-$300 per month.
A legal claim against a property for unpaid debts. Common liens include mortgage liens, tax liens, mechanic's liens, and judgment liens. All liens must be resolved before a property can be sold with clear title.
A real estate agent who represents the seller in a transaction. The listing agent markets the property, coordinates showings, negotiates offers, and guides the seller through closing. Their commission is typically 2.5-3% of the sale price.
A database used by real estate agents to share property listings. When a home is listed on the MLS, it becomes visible to all agents and is syndicated to major real estate websites like Zillow, Realtor.com, and Redfin.
A lender's conditional commitment to provide a mortgage up to a specified amount. Pre-approval involves a credit check, income verification, and asset review. Having a pre-approval letter strengthens a buyer's offer.
The amount of money a seller receives after all costs and fees are deducted from the sale price. Net proceeds = sale price minus mortgage payoff, commissions, closing costs, and any repair credits.
The legal process of administering a deceased person's estate, including transferring property ownership to heirs. In California, probate can take 7-12 months and cost 4-7% of the estate's value.
Selling an Inherited HouseAn annual tax assessed by the county based on a property's assessed value. In Fresno County, the property tax rate is approximately 1.1-1.3% of assessed value. Under Proposition 13, assessed value increases are capped at 2% per year.
A deed that transfers whatever ownership interest the grantor has in a property, without any warranties or guarantees. Quitclaim deeds are commonly used in divorce settlements, transfers between family members, or to clear title issues.
The purchase of property for the purpose of generating income or profit. Investment strategies include fix-and-flip (buying, renovating, and reselling), buy-and-hold (rental properties), and wholesale (assigning contracts).
Investor ResourcesA document required by California law in which the seller discloses known material facts about the property's condition. This includes defects, repairs, environmental hazards, and any other issues that could affect the property's value.
A sale where the property is sold for less than the amount owed on the mortgage, with the lender's approval. Short sales are an alternative to foreclosure and can take 3-6 months to complete due to lender approval requirements.
A tax provision that adjusts an inherited property's cost basis to its fair market value at the time of the previous owner's death. This can significantly reduce capital gains tax when the heir sells the property.
Insurance that protects the buyer and lender against losses from defects in the property's title, such as undisclosed liens, forgery, or errors in public records. In California, the seller typically pays for the buyer's title insurance policy.
A tax imposed when property ownership changes hands. In California, the county transfer tax is $1.10 per $1,000 of the sale price. Some cities impose additional transfer taxes.
A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans, active-duty service members, and surviving spouses. VA loans offer competitive rates, no down payment requirement, and no private mortgage insurance.
A real estate investor who contracts to buy a property and then assigns that contract to another buyer for a fee, without ever purchasing the property themselves. Wholesalers add a middleman markup, reducing the seller's net proceeds.
Why Avoid WholesalersLocal government regulations that dictate how property in specific areas can be used. Zoning categories include residential, commercial, industrial, and agricultural. Zoning affects what can be built on a property and how it can be used.
Our team is here to help you understand every step of the buying or selling process. Contact us for a free consultation.