Real Estate Terms You Should Know Before Buying or Selling

Real estate has its own language, and if you’re not in the industry, some of the terminology can feel like alphabet soup. This week I want to break down some of the most common terms you’ll encounter when buying or selling a home and do it in plain English, no jargon required.

Pre-Approval: This is a letter from a lender that states how much money they are willing to lend you based on your income, credit, and financial history. It’s different from pre-qualification, which is a short-cut estimate, essentially a lender’s way of saying “sure, probably, maybe.” Little to no effort goes into these sometimes depending on the lender. A pre-approval carries more weight and tells sellers you’re a serious, ready buyer that has been financially verified.

Comparative Market Analysis (CMA): This is a report prepared by your real estate agent that looks at recently sold homes similar to yours in your area. It helps determine a fair and competitive listing price. Think of it as your home’s report card, except this one could actually affects your finances.

Contingency: This is a condition that must be met for the sale to move forward. Common contingencies include a home inspection contingency (buyer can back out if serious issues are found) and a financing contingency (buyer can back out if they can’t secure a mortgage). Contingencies protect both parties and occasionally save people from some very expensive mistakes.

Earnest Money: This is a deposit made by the buyer when they submit an offer, typically held in escrow. It shows the seller the buyer is serious. If the deal closes, it goes toward the purchase price. If the buyer backs out without a valid contingency, they may lose it. So yes, the name is quite literal.

Escrow: An escrow account is held by a neutral third party, usually a title company to hold funds during a real estate transaction. Your earnest money goes into escrow, and so does your down payment until closing. Think of it as a financial waiting room where your money sits and stares at the wall until everything is sorted out.

Closing Costs: These are fees and expenses paid at the closing of a real estate transaction, above and beyond the purchase price. They can include lender fees, title insurance, appraisal fees, and prorated property taxes, and more. Buyers and sellers each typically have their own closing costs. Just when you thought you knew what the house was going to cost.

Title Insurance: This protects you against any issues with the legal ownership of the property. An example would be an old lien or an ownership dispute that might arise after you’ve purchased the home. It’s the kind of insurance you hope you never need, but glad you have it.

Clare County Review

Real Estate Column

By Daniel Dwyer-Snyder, Associate Broker, Manager

CENTURY 21 Signature Realty – Clare County

989-708-1845 Daniel@RealtorDaniel.com

Days on Market (DOM): This is the number of days a home has been listed for sale. A lower DOM generally indicates a strong seller’s market. A higher DOM can be a signal that a home is overpriced or has issues. Either way, someone has some explaining to do.

Understanding these terms can help you feel more confident and informed throughout the buying or selling process. And of course, your agent should always there to explain anything along the way, ideally before you sign something.

One more piece of advice that doesn’t require a glossary: interview your agent before you commit to working with them. Whether you’re buying or selling, a professional agent will schedule a consultation — in their office or in your home — so you can get to know each other before anyone signs anything. Real estate transactions involve a lot of time, money, and the occasional stressful phone call, so it’s worth making sure the personalities are a good fit. Think of it as a job interview where both parties are auditioning.

It’s also worth doing a little homework on your prospective agent before that meeting. A quick internet search can tell you quite a lot. Check their reviews, browse their social media accounts, watch any videos they’ve posted, and get a sense of their overall online presence. This matters more than you might think. The majority of today’s buyers and sellers begin their search by looking at photos and content online, which means your agent’s digital footprint is often the first impression they make. An agent who understands that is an agent worth talking to.

One thing to avoid: clicking that tempting “Learn More Now” or “Book a Showing Now” button you’ll find scattered across real estate websites. It may seem convenient, but what it starts is an avalanche of unsolicited calls, emails, and texts from people you never intended to hear from. It’s the digital equivalent of wandering into a timeshare presentation. Instead, do the work upfront and research agents, read their reviews, get a feel for who they are, and then reach out directly to the one who fits your personality and expectations. The right agent is worth finding and waiting for. The wrong inbox, voicemail, or text message full of solicitations is not.

Here are the May 2026 stats for Clare County. Our median list price for May was $194,900. The average days on market for a listing was 87. Currently there are 169 homes for sale across the county.

Daniel Dwyer-Snyder is an Associate Broker with CENTURY 21 Signature Realty in Clare. He can be reached at 989-708-1845.