If you’re buying a home for the first time or you are just beginning your investing career, you’ll likely encounter real estate terms that you’ve never heard of before. These words might confuse you, hence you need to understand the terms in real estate.

In order, to help you out, we have put together the following as a complete guide to real estate terms that will help you better understand the process.

Realtor vs. Broker

A realtor is a person who is knowledgeable in real estate ethics and codes and who has undergone training and is certified to operate in the real estate business while a real estate broker works to negotiate and arrange real estate transactions. This licensed individual has daily duties that include writing contracts and overseeing transactions for sales and purchasing activities on homes, land and commercial properties.

Sales Closed vs. Sold Out

Sales close means that a property is not sold out yet, but it has stopped selling till when it will be reopened for sale, reasons for closure is best known to the seller while sold out simply means a property is completely sold and there is none left or remaining.

Buyer’s Agent vs. Listing Agent

There are usually two agents involved when you buy a home; the “buyer’s agent,” who represents you, and the “listing agent,” who represents the home seller. Dual agency is when there is only one agent representing both sides of the transaction.

When buying a home, you don’t pay your real estate agent – they’ll get a commission from the home seller.

Deed of Assignment vs. Deed of Conveyance

The deed of assignment refers to the legal document that transfers ownership of a property from a seller to a buyer through sales while the deed of conveyance transfers legal ownership of a property from one individual to another in form of a gift, mortgage or other real estate transactions.

Listings

One of the first real estate terms you’re likely to encounter is what real estate agents frequently refer to homes for sale as “listings.” A “listing” on a website shows information about the home, such as the price and number of bedrooms.

Home Inspection

After you’ve made an offer on a home, you’ll most likely need to schedule a home inspection depending on the market and size of the home. The inspector will go through every nook and cranny, and review things like the plumbing, electrical, foundation, walls, heating, and appliances.

Get advice from your realtor on a good inspector. If they find something wrong, you can negotiate for home sellers to fix it or possibly reduce the purchase price of the home.