Real Estate Terms of the Week

Breaking Down the Language of Real Estate — So You Feel Confident Every Step of the Way

If you’ve ever looked at a real estate contract, talked to a lender, or tried to read an inspection report, you’ve probably noticed one thing:

Real estate has its own language.

And it’s easy to feel overwhelmed—especially if you’re buying, selling, or investing for the first time. My job as a REALTOR® is not just to guide you through the process, but to make sure you actually understand it.

So today, we’re breaking down some of the most common real estate terms you will definitely come across in a transaction — but in plain, real-world language.

Let’s dive in.

1. Escrow

Think of escrow as the neutral middle ground of a real estate deal.

When you buy or sell a home, there are documents, funds, and promises being made from both sides. Escrow provides a third-party holding space to keep all of those items safe and accounted for.

It’s like a referee:

• No one gets the money

• No one gets the keys
  Until all parties complete their part fairly.

Why it matters:
This protects you. It prevents surprises, dishonesty, or changes after agreements are made.

2. Adjustable-Rate Mortgage (ARM)

An ARM can look appealing at first because it often begins with a lower interest rate than a traditional fixed-rate mortgage. But here’s the catch:

The rate isn’t permanent.

Over time, the interest adjusts based on the broader market, which means your monthly payment can go up — sometimes significantly.

Best for:
Short-term homeowners or strategic investors.

Risk:
Future payment uncertainty.

If you’re planning to stay in your home long-term — an ARM is something we evaluate carefully before choosing.

3. Appraisal

The appraisal is an unbiased professional’s value estimate of the property.

Lenders use it to decide:

• How much they’re willing to loan,

• And whether the purchase price is justified.

If the appraisal comes in lower than the contract price, it can change the structure of the deal.

Translation:
Just because the seller asks a price doesn’t mean the lender will support it.

This is why pricing your home correctly matters — and why skilled negotiation matters even more.

4. Title Insurance

Title insurance protects you from legal claims against your home’s ownership.

Imagine buying a house only to later find out:

• A previous owner never paid a contractor,

• A long-lost heir shows up,

• Or paperwork from 30 years ago wasn’t filed correctly…

Without title insurance, those problems could become your problems.

With title insurance?
You’re protected.

It’s peace of mind — for as long as you own the property.

Why Understanding These Terms Matters

You don’t need to become a real estate professional — that’s what I’m here for — but understanding these terms allows you to:

✔ Make confident decisions
✔ Understand your options instead of guessing
✔ Avoid mistakes that cost thousands
✔ Keep your power in the negotiation

Knowledge is leverage.
And I want you to have all of it.

Ready for a Personalized Strategy Call?

Whether you’re:

• Buying your first home,

• Preparing to sell,

• Or exploring investment opportunities…

I’ll walk you through every step, every term, and every strategy — no guessing, no confusion.

📲 Book a call:
https://calendly.com/jessicajbrealtor

📲 Call or text (336) 567-5843
Brokered by Real Broker, LLC — NCREL #312309
Jessica J. Baldovinos | @JessicaJBRealtor