Real estate is full of jargon that sounds intentional. "Contingent" means one thing in California and another in New York. "Pending" means the deal is almost done — or almost dead. "Escrow" can refer to three different things in the same sentence. This glossary explains 50 of the most-searched real estate terms in plain English, so you can stop guessing what your agent is telling you.
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Listing status terms
These are the labels you see on Zillow, Realtor.com, and the MLS that tell you where a listing stands in the transaction.
01What does contingent mean in real estate?
Contingent is the most-misunderstood status in real estate. Buyers see "contingent" and assume the home is sold. It is not. A contingent property has an active offer subject to conditions, and those conditions fail more often than most buyers realize — between 5% and 10% of contingent deals fall apart before closing.
The most common contingencies in a typical purchase agreement: inspection (buyer can back out if inspection reveals serious issues), financing (mortgage denied), appraisal (comes in below offer), and home sale (buyer cannot sell current home).
If you are a buyer and you find a contingent listing you love, ask your agent to submit a backup offer. If the primary deal falls through, you move to the front of the line.
02What does pending mean in real estate?
A pending status is the home stretch. By the time a listing goes pending, the inspection has happened, the appraisal has cleared, financing is locked, and any other contingencies have been resolved or waived. What is left is paperwork, walkthrough, and the actual closing day.
Pending deals still fall through about 3-5% of the time. The most common reasons: buyer's loan denied at final underwriting, title issues surface late, buyer fails the final walk-through, or one party decides to walk and accept the legal penalty.
03What does under contract mean in real estate?
When a listing goes "under contract" in your local MLS, the seller accepted an offer, the buyer signed a purchase agreement, earnest money has been deposited into escrow, and the transaction timeline has officially begun. Depending on the state, the listing then displays as either contingent or pending.
04What does active under contract mean?
Other states use different terms for the same concept — "Under Contract Continue to Show" or "Contingent Continue to Show." The functional meaning is the same: the seller has accepted an offer and is still entertaining backup offers.
For buyers, this is your best opportunity to submit a backup offer on a home you would have lost. If the primary buyer's inspection or financing fails, you move into first position automatically.
05What does coming soon mean in real estate?
Coming Soon listings show up on Zillow and Realtor.com but cannot be toured yet. The seller is preparing the home, finishing repairs, or timing the launch for maximum exposure. Some markets restrict how long a listing can sit in Coming Soon — usually 7 to 21 days.
06What does back on market mean?
BOM listings are often a buying opportunity. The seller has already started over psychologically and may be more motivated to negotiate.
If you see a Back on Market listing, ask your agent to find out why the previous deal fell through. If it was an inspection failure, you want the inspection report before bidding. If it was financing, the property is probably fine.
07What does expired listing mean?
Expired listings are a goldmine for agents — sellers who just had a frustrating experience and are likely still motivated to sell. For buyers, expired listings may indicate a property that was overpriced or had issues that scared off buyers.
08What does withdrawn listing mean?
Withdrawn listings are different from expired listings. The seller might be doing repairs, dealing with a family situation, or waiting for a better market. If you are interested, your agent can reach out to gauge if the seller would entertain a private offer.
09What does sold mean in real estate?
"Sold" data is the most valuable information on the MLS for both pricing strategy and market analysis. Recent sold comparables determine appraisals, listing prices, and buyer offer strategy. Agents call this "comps."
10What does off market mean?
Off-market deals are common in high-end real estate and investor circles. Sellers who want privacy, are testing the market, or do not want to deal with showings will market off-MLS through their agent's network.
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Book a discovery call →Listing types & sale categories
These terms describe what kind of listing or sale you are looking at.
11What is exclusive right to sell?
This is by far the most common listing agreement type. The seller signs a contract for 3-6 months giving the agent the sole right to market and earn commission on the sale. In exchange, the agent invests in marketing, photography, signage, and showings.
12What is an open listing?
Open listings are most common with commercial real estate, FSBO sellers willing to pay buyer's agent commission, and unusual situations. For residential sellers, open listings typically produce less marketing and lower prices.
13What is a net listing?
Net listings are legal in Texas and a handful of other states but are considered ethically problematic and rarely used. Most state real estate commissions prohibit them outright.
14What does FSBO mean?
FSBO sales are a small percentage of transactions — 7% of sales in 2024 according to NAR — and FSBO homes sell for an average of $100,000 less than agent-listed homes in the same market.
15What is the MLS in real estate?
Zillow, Realtor.com, and Redfin all pull their data from regional MLS systems. For agents and brokerages, MLS access is essential. For consumers, public sites show MLS data with a 15-minute to several-hour delay.
16What is an REO property?
REO properties can be good deals because banks are not emotional sellers. But they come with caveats: sold "as-is," may have deferred maintenance, and sometimes have title issues.
17What is a short sale in real estate?
Short sales can take 3-6 months to close because the lender must approve every offer. The upside is potential discount; the downside is uncertainty and timeline.
18What is a HUD home?
HUD homes are sold "as-is" and typically come with a priority bidding window for owner-occupant buyers before investors get access.
Money & finance terms
The terms that show up in your wallet — from earnest money on day one to closing costs on closing day.
19What is earnest money?
If the buyer backs out for reasons not covered by their contingencies, they typically forfeit the earnest money. If contingencies fail and the deal collapses, the buyer gets the earnest money refunded.
In competitive markets, larger earnest money deposits — 5% or 10% — can strengthen an offer.
20What does escrow mean?
Escrow protects both parties. The buyer's earnest money is held by escrow, not the seller. The seller's deed is held by escrow until the buyer's payment clears. On closing day, escrow distributes funds and records the deed transfer.
21What are closing costs?
Closing costs include loan origination fees, title insurance, escrow fees, transfer taxes, prepaid property taxes and insurance, and recording fees. Buyers should ask their lender for a Loan Estimate within 3 days of applying.
22What is a closing disclosure?
The Closing Disclosure replaced the old HUD-1 Settlement Statement under the 2015 TRID rules. The 3-day waiting period is mandatory. Buyers should compare the CD to the original Loan Estimate.
23Pre-approval vs pre-qualification: what is the difference?
If you are seriously shopping for a home, get pre-approved before you make offers. A pre-approval letter on a competitive offer is the difference between being taken seriously and being ignored.
24What does cash offer mean?
Cash buyers can typically negotiate a 1-3% discount on the listed price. In hot markets, cash offers can win even when financed offers are higher.
25What is title insurance?
There are two types: lender's title insurance (required by every mortgage lender) and owner's title insurance (optional but recommended). The cost is paid once at closing — typically $1,000-$3,500 for an average home.
26What is a down payment?
Common options: 0% (VA, USDA), 3-3.5% (FHA), 5-10% (conventional with PMI), 20%+ (conventional no PMI). Larger down payments lower monthly payments and eliminate PMI, but tie up cash.
27What is an appraisal in real estate?
Appraisals cost $400-$800 and are paid by the buyer. If the appraisal comes in below the offer price, the deal hits a fork: challenge, lower price, pay difference, or walk away.
28What is a 1031 exchange?
The rules are strict: 45 days to identify replacement properties, 180 days to close, funds held by qualified intermediary. Only applies to investment properties, not primary residences.
29What is a mortgage contingency?
This is the single most important contingency for financed buyers. Even with pre-approval, final underwriting can deny a loan if your credit changes, job changes, or the property appraisal causes issues.
30What does foreclosure mean?
Judicial foreclosure takes 6-18 months. Non-judicial (California, etc.) can complete in 4-6 months. Properties can be purchased at multiple stages: pre-foreclosure, at auction, or after the bank takes them as REO.
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Book a discovery call →The transaction process
The steps between "offer accepted" and "keys in hand."
31What is closing in real estate?
On closing day, the buyer typically signs 50-100 pages of documents, the seller signs the deed, escrow distributes all the money, and the title company records the deed transfer at the county recorder's office.
32What is a home inspection?
Inspections protect the buyer from surprises. Based on the findings, the buyer can negotiate repairs, request seller credits, or walk away (if they have an inspection contingency).
33What is an appraisal contingency?
If the appraisal comes in low, the contingency gives options: renegotiate the price, pay the difference in cash, challenge the appraisal, or walk away.
34What is an inspection contingency?
If the buyer and seller cannot agree on requested repairs, the buyer can typically walk away with their earnest money intact.
35What is a financing contingency?
Even with pre-approval, mortgages can be denied during underwriting. The financing contingency is the most important contingency for any buyer using a mortgage.
36What is a final walk-through?
Walk-throughs find more problems than people expect: sellers leave junk, repairs are sloppy, appliances disappear, weather causes damage. If problems surface, the buyer can delay closing or demand credits.
37What is due diligence in real estate?
Covers inspections, title research, financing approval, HOA document review, survey. In some states like North Carolina, "due diligence" is a specific contract term tied to a non-refundable fee.
38What is an open house?
Open houses are marketing events. For brokerages running open houses well, a single weekend can produce 4-8 qualified leads. See our listing marketing service.
39What is a listing agreement?
Standard listing agreements run 3-6 months. Sellers should read every line — particularly cancellation terms and what happens if they want to terminate early.
40What is a counter offer?
A typical negotiation has 1-3 rounds of counters before agreement or impasse. Each counter offer should be in writing through the agents.
People & roles
Who is who in a real estate transaction.
41Real estate agent vs realtor vs broker
The career path: agent → experienced agent → broker (with additional licensing) → possibly broker-owner. If you are considering becoming a broker, our brokerage support services are built for new and growing brokerage owners.
42What is a buyer's agent?
Following the 2024 NAR settlement, buyer agency agreements are now required upfront in many states. Buyers should expect to sign one before touring homes.
43What is a listing agent?
The best ones invest heavily in photography, video, social media, and digital marketing — which is why brokerages partner with marketing teams like ours.
44What is dual agency?
Dual agency is controversial because the agent's fiduciary duty to both parties creates a conflict. Many buyers and sellers prefer separate representation.
45What does a transaction coordinator do?
For a busy agent doing 30+ transactions a year, a TC is essential. For brokerages, a centralized TC team is one of the highest-leverage operational investments.
Legal & contract terms
The legal terms that appear on documents you actually sign.
46What is a deed in real estate?
A warranty deed guarantees clear title; a quitclaim deed only transfers whatever interest the seller has. Most residential transactions use a warranty deed.
47What is title in real estate?
"Cloud on title" is a problem with the title that needs resolution before closing. Title insurance protects buyers from undiscovered title problems after closing.
48What is a lien on a property?
Liens must be resolved before clear title can transfer. At closing, the seller's mortgage is paid off and that lien is released.
49What is an easement?
Easements transfer with the property. Most are routine and harmless, but some can limit what you can build or where you can park. Always read the easement language before closing.
50What does "as-is" mean in real estate?
As-is does not mean the buyer can't inspect or back out. In most states, as-is sales still allow inspection contingencies — the buyer can still walk away based on inspection findings.