There are so many real estate terms that surface during the buying and selling processes…it’s enough to make your head spin! (This is one of the reasons why it pays to employ the services of a licensed Realtor– read more about that in our previous post on the topic!) We thought we’d take a few terms at a time (starting with “A” of course) and give simple explanations for each, courtesy of National Association of Realtors (NAR) Real Estate Glossary. For the full list of the terms and definitions, click here! For the first five terms that we covered in our last post, click here!
Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer agency agreement may require the buyer to pay a commission to his or her agent.
Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.
Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.
Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.
DOM: Days on market. The number of days a property has been on the market.