Real Estate Glossary

The terms agents use — in plain English.

Real estate is full of jargon, acronyms, and lender-speak. Each term below includes a plain-English definition, why it matters, a Utah-specific example, the mistake buyers make most often, and related concepts to explore.

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Active Listing Status: The home is on the market and accepting showings and offers. No contract is in place yet.
Active Under Contract / Backup AUC Listing Status: The seller has an accepted offer but is still entertaining backup offers in case the primary deal falls through.
Addendum Contract & Closing: An amendment to the REPC — used to counter, change deadlines, or add/remove terms. Both parties must sign for it to be binding.
Appraisal Financing: An independent valuation of the home commissioned by the lender. If it comes in below the purchase price, the loan won't fully fund unless the buyer brings cash or the seller drops price.
Appraisal Gap Financing: A buyer's promise to cover (with cash) the difference between purchase price and appraised value, up to a stated cap. Common in competitive markets.
Appraiser People & Roles: An independent, licensed professional hired by the lender to value the property.
Assumable Loan Financing: A mortgage the buyer can take over from the seller — keeping the seller's existing rate. Most VA, FHA, and USDA loans are assumable; conventional loans typically are not.
Average Money & Costs: The sum of all values divided by the number of values. In real estate, the average sale price is calculated by adding all sold prices and dividing by the number of sales.
Buy-Down Financing: Paying upfront points (or having the seller pay) to lower the interest rate — either temporarily (2-1 buydown) or permanently.
Buyer's Agent People & Roles: The Realtor® who represents the buyer — negotiates on their behalf and owes fiduciary duty to the buyer.
CDOM Cumulative Days on Market Listing Status: Total days across multiple recent listings of the same home — so re-listing doesn't reset the clock for savvy buyers.
Closing Costs Money & Costs: All the fees due at closing beyond the down payment — lender fees, title insurance, escrow, recording, prepaid taxes and insurance. Usually 2–4% of purchase price for buyers.
Coming Soon Listing Status: The listing is published but not yet open for showings. Used to build buzz before going live.
Concessions Money & Costs: Money the seller agrees to credit the buyer at closing — typically used to cover closing costs or buy down the buyer's interest rate. Common in today's market.
Conforming Loan Limit Financing: The maximum loan amount Fannie Mae and Freddie Mac will buy. Anything above is a jumbo loan.
Contingency Financing: A condition that must be met for the contract to move forward — common ones: financing, appraisal, inspection, and sale of buyer's current home.
Conventional Loan Financing: A standard mortgage not backed by a government agency. Best rates for strong credit; typically 3–20% down.
Counter-Offer Contract & Closing: A response to an offer that changes any term — price, dates, contingencies, etc. A counter-offer legally rejects the original offer.
Deed Inspection & Title: The legal document that transfers ownership of the property from seller to buyer. Recorded with the county after closing.
DOM Days on Market Listing Status: How many days the home has been actively listed. High DOM gives buyers leverage; low DOM signals competition.
Down Payment Money & Costs: The portion of the purchase price the buyer pays in cash up front, with the rest financed. Common ranges: 0% (VA/USDA), 3–5% (FHA/conventional), 20% (no PMI).
Dual Agency / Limited Agency People & Roles: When one agent (or one brokerage) represents both buyer and seller in the same deal. Allowed in Utah with written consent, but reduces the advocacy each side gets.
Earnest Money EMD Money & Costs: A 'good faith' deposit (often 1–3% of purchase price) the buyer puts up when an offer is accepted. Held in escrow and applied to the down payment at closing — but can be forfeited if the buyer walks for non-contractual reasons.
Easement Inspection & Title: A legal right someone else has to use a portion of your property — often utility companies, neighbors, or shared driveways.
Effective Date Contract & Closing: The date the last party signs and acceptance is communicated. Almost every deadline in the contract counts from this date.
Encroachment Inspection & Title: When a structure (fence, shed, deck) crosses the property line onto a neighbor's land — or vice versa.
Escrow Account Money & Costs: An account your lender uses to collect monthly portions of your property tax and insurance, then pays those bills on your behalf.
Expired Listing Status: The listing agreement ended without a sale. The seller is free to relist with a new agent.
FHA Loan Financing: A government-backed loan with lower credit and down payment requirements (as little as 3.5%). Great for first-time buyers; carries permanent mortgage insurance.
HOA Homeowners Association Money & Costs: A governing body in a community/condo that collects monthly or annual dues and enforces rules. Always review CC&Rs and financials before buying in an HOA.
Inspection Inspection & Title: A licensed inspector's review of the home's condition — roof, systems, structure, plumbing, electrical, HVAC. Buyer pays; usually $400–$700 in Utah.
Interest Rate vs APR Financing: Interest rate is the cost of borrowing. APR includes lender fees rolled in — a truer apples-to-apples comparison between loan offers.
Jumbo Loan Financing: A mortgage larger than the conforming loan limit ($766K+ in most Utah counties for 2025). Stricter underwriting, often higher reserves required.
Lender / Loan Officer People & Roles: The person at the bank or mortgage company who underwrites and issues your loan. Pick one early — a slow lender can kill a deal.
Listing Agent People & Roles: The Realtor® who represents the seller. Their fiduciary duty is to the seller, not to you as a buyer.
Median Money & Costs: The middle value when all values are arranged in order. Half the homes sold for more, half for less.
MIP Mortgage Insurance Premium Money & Costs: FHA's version of PMI. Usually stays on the loan for the life of the loan unless refinanced out.
PITI Money & Costs: Principal, Interest, Taxes, and Insurance — the four pieces of a typical monthly mortgage payment. Add HOA dues separately.
PMI Private Mortgage Insurance Money & Costs: Extra monthly insurance required on conventional loans when the buyer puts less than 20% down. Drops off automatically once equity hits 22%.
Possession Contract & Closing: The day the buyer actually gets keys. Often the same as closing — but can be delayed by agreement (e.g. seller rent-back).
Pre-Approval Financing: A lender has actually reviewed your income, credit, and assets and issued a letter committing to a loan amount. Required to be taken seriously by sellers.
Pre-Qualification Financing: A lender's quick, informal estimate of what you might borrow based on stated income. Not binding — and not strong enough to make offers with.
Price Reduction Listing Status: A drop in list price. Multiple reductions usually signal the home was overpriced from day one.
Property Taxes Money & Costs: Annual tax assessed by the county based on the home's assessed value. In Utah, the primary-residence exemption reduces taxable value by 45%.
Rate Lock Financing: An agreement with the lender to hold a specific interest rate for a set window (30–60 days typical) while you close.
REPC Real Estate Purchase Contract Contract & Closing: Utah's standard purchase contract. The legally binding document that lays out price, terms, deadlines, and contingencies.
Seller Financing Financing: The seller acts as the bank: instead of the buyer getting a mortgage, the buyer makes monthly payments directly to the seller under terms they agree on. Useful when buyers can't qualify conventionally or when sellers want passive income with attractive interest.
Settlement / Closing Contract & Closing: The day funds and signed documents change hands. Buyer signs loan docs; seller signs the deed.
Sold / Closed Listing Status: Title has transferred and funds have changed hands. The transaction is complete.
Survey Inspection & Title: A professional measurement of the property's boundaries. Not always required, but smart for rural properties or anything with fence/easement questions.
Title Inspection & Title: Legal ownership of the property. A title search confirms the seller actually owns it and that there are no surprise liens.
Title Insurance Inspection & Title: A one-time policy that protects against title defects discovered after closing — old liens, forgeries, missing heirs.
Title Officer / Escrow Officer People & Roles: The neutral third party who holds funds, prepares the deed, and orchestrates closing.
Under Contract / Pending Listing Status: Seller has accepted an offer. The home is no longer truly 'available,' though backup offers can sometimes be submitted.
Underwriter People & Roles: The behind-the-scenes person at the lender who actually approves (or denies) the loan based on full file review.
USDA Loan Financing: A 0%-down loan backed by the USDA for homes in eligible rural areas. Much of Juab and Sanpete County qualifies.
VA Loan Financing: A loan guaranteed by the Department of Veterans Affairs for eligible active, retired, and veteran service members, and qualifying spouses. 0% down, no PMI, and competitive rates — one of the best loan products in America.
Walk-Through Contract & Closing: The buyer's final inspection of the home in the 24–48 hours before closing to confirm condition and that agreed-upon repairs were completed.
Withdrawn Listing Status: Seller pulled the listing off the market temporarily. The listing agreement is usually still in force.

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