General real estate words to use when selling a house

Mastering the art of using home description words in your property listings can make a huge difference. The right language helps showcase a home’s layout, features, and amenities in a way that captures buyers’ interests.

A well-crafted description can make a listing more persuasive and engaging, drawing in more leads. However, while it’s essential to be descriptive, remember to avoid exaggeration to manage client expectations. Here’s a collection of some general but catchy real estate advertising words.

Descriptive terms for neighborhoods and locations

When describing a neighborhood, consider its unique appeal to different types of buyers. Is it a prestigious gated community? Is it a trendy place bustling with energy? Is it nestled in nature? Your listing should paint a picture of what life would be like in this neighborhood. Highlight amenities such as nearby parks, schools, healthcare facilities, and shopping and dining centers.

Luxury real estate descriptions

When you’re selling a luxury property, your website must have amazing photos and impactful real estate graphic design. In addition to stunning visuals, you need a refined, detail-rich listing that evokes exclusivity. What type of marble graces the kitchen countertops? Does the home feature bespoke furnishings? Who designed the interiors? 

When communicating with affluent clients, it’s essential to be very specific in highlighting the properties’ distinctive features. Many luxury buyers value bespoke details and exceptional craftsmanship, expressing their desire for out-of-the-ordinary homes.

Historic real estate descriptive words

Coming up with property listing descriptions for a historic home can be an opportunity to tell a story. Highlight the property’s architectural heritage, historical significance, and timeless charm. Emphasize how much was done to preserve the home’s authenticity while blending in modern comforts. Make your listing stand out by using words that capture the essence of the home’s past and enduring beauty.

Real estate words to describe bedrooms

When writing about your listing’s bedrooms, don’t just list the important details like size and layout — talk about the standout features. Is there a walk-in closet, a rain shower in the bathroom, or a picturesque bay window? Highlight architectural features, too! Buyers want to hear about cozy alcoves and features that will make their bedroom a private oasis.

Don’t forget to mention the views from the bedroom! Help potential buyers picture themselves waking up to something special.

Real estate terms for kitchens

There are many studies that show that kitchens have a major influence on buyers’ decisions about a house. When showcasing kitchens in your listings, emphasize their functionality and features. Are there any chef-grade appliances? Which amenities are included in the purchase? Describe the kitchen’s layout, quality of appliances and cabinetry, or the type of sink. With a strong kitchen description, it’s easier for potential buyers to envision themselves in the home.

Real estate agent words for living rooms

In addition to the kitchen, the living room is the heart of the home. It’s where household members gather, host friends, entertain guests, or relax after a long day. Therefore, when describing the living room in your listing, focus on its ambiance, whether it has an open floor plan, natural lighting, or a moody design. Mention important details of the living room, such as the brick fireplace, designer lamps, and built-in shelving units.

Don’t forget to create a narrative that will resonate with your audience! Tell them about the future gatherings they will host in the living room or the cozy evenings they’ll spend on the huge sectional couch.

Real estate buzzwords for bathrooms

Bathrooms are among the most important rooms in a home. So, when describing bathrooms in your property listings, ensure you highlight both functionality and style. Emphasize key features such as the number of bathrooms inside the property, standout amenities (e.g., energy-efficient fixtures, heated floors, and double vanities), and any recent upgrades.

Tips for writing property listings with real estate descriptive words

Writing property listings doesn’t have to be complicated, and you can check out our guide on how to write creative listing descriptions!

• Know your audience. Research and understand the preferences and lifestyles of your target audience. For example, if you’re marketing a home for young professionals, mention the home’s proximity to the business district, nightlife, and airport. Align your language with the demographic you’re targeting. Check out our real estate listing marketing plan for strategies to market your listing more effectively.
• Highlight unique features. Indicate what sets your property apart from others. Be specific about what sets it apart, whether it’s distinctive architectural details, historical significance, recent renovations, or energy-efficient upgrades. Every detail counts — even simple curb appeal ideas like fresh landscaping, stylish house numbers, or a well-maintained walkway can enhance a home’s first impression. Emphasize distinctive aspects of the property by using specific and evocative terms.
• Be specific. Provide detailed and concrete information about the property. For example, instead of using “sleek” to define a kitchen, mention the brands of appliances, the type of flooring, and who designed the bar stools. If you’re enhancing listing photos digitally, consider using one of the best virtual staging software to create realistic and appealing interiors. Also, ensure your descriptions reflect changes to the property. Being specific demonstrates your attention to detail as an agent.
• Appeal to the buyer’s senses. Use words that evoke emotions and help buyers imagine the lifestyle the property offers. Tell them about enjoying coffee on the wraparound porch, cozying up by the fireplace, or hosting gatherings in the backyard. But even the most vivid descriptions need strong visuals to back them up. Check out our real estate photography tips to ensure your listing captures the home’s best features.
• Use action-oriented language. Encourage potential buyers to take the next step! Adding in a short line like “Schedule a private tour now” or “Don’t miss the opportunity to experience this stunning home firsthand” can prompt potential buyers to further engage with your listings.

Frequently asked questions (FAQs)

What examples of overused or cliché real estate words should agents avoid?

Are there any best practices for using real estate adjectives in listings?

Do listing words vary depending on the property type or target demographic?

The final walkthrough

The right words can make all the difference in attracting buyers. Always tailor your language to fit your audience and highlight what makes each property unique. While these words help craft compelling descriptions, you can take your marketing even further by using the best real estate keywords to improve SEO, attract more leads, and maximize your reach.

The post 250+ Real Estate Words to Market Your Next Listing appeared first on The Close.

What is a real estate referral fee?

A real estate agent referral fee is a payment made when one agent refers a client to another. This system encourages agents to share leads, ensuring clients receive the best possible service — even if their original agent isn’t able to assist them directly.

Referral fees help create a strong real estate networking system, allowing agents to connect clients with the right professionals for their needs. This benefits both the client and the agents involved, fostering collaboration and expanding business opportunities. 

For new agents, referrals are an excellent way to start building their book of business, gaining experience and making connections early on. On the flip side, sending out referrals can be a great way to earn extra income without having to do the legwork — making it a win-win for everyone involved!

The parties involved in a real estate referral 

Real estate referrals include different parties with specific roles and responsibilities.The following are some of the roles that are involved in a referral transaction:

• Referring agent: The referring agent (or other real estate professional, like a lender or investor) recognizes that a client’s needs fall outside their geographic area or specialty and refers them to another agent. If the deal closes, they receive a referral fee.
• Receiving agent: The receiving agent accepts the referral and works with the client to complete the transaction.
• Client: The individual looking to buy, sell, or rent a property. They are connected with the receiving agent to ensure they receive the best possible service.
• Broker: Brokers are licensed real estate agents with additional experience and education. They can act as either the referring or receiving agent, but not both in the same transaction.

Who pays real estate referral fees?

Referral fees are paid by the receiving agent from their commission, not by the client. The client is only responsible for the total commission outlined in their agreement, while the receiving agent deducts the referral fee from their earnings.

This payment is typically made after the transaction is completed, ensuring that the referring agent is compensated only when the deal successfully closes.

How much is a referral fee?

The standard real estate agent referral fee is typically around 25% of the gross commission earned by the receiving agent. This rate is common for both residential and commercial transactions, but can vary based on the agreement between agents and other factors.

Factors that influence the referral fee

Referral fees can range from as low as 20% to as high as 35% based on factors such as:

• Market conditions: Demand and timing can impact rates, which is essential when considering the best and worst times to buy a house.
• Complexity of the referral: High-value or niche transactions may warrant a different fee structure. 
• Level of service required: Some referrals demand more involvement, affecting the agreed percentage.

Example referral fee calculation

How to ask for a referral fee

Securing a referral fee requires clear communication and professionalism. Agents should confidently present the referral arrangement while ensuring transparency and fairness. 

Here’s how to approach the conversation:

1. Establish the value of the referral: Before making the request, highlight the value of the referral. Emphasize how the client is qualified, motivated, and ready to proceed, making the transaction beneficial for both parties.

2. Be clear and direct: Clearly state the expectation of a referral fee upfront. Avoid vague language — let the receiving agent know the specific percentage being requested and ensure they are on board before making the referral.

3. Reference industry standards: Most referral fees fall within the standard 20% to 35% range of the receiving agent’s commission. Citing these industry norms can make negotiations smoother.

4. Put it in writing: A formal real estate referral agreement should outline all key terms, including the fee percentage, payment conditions, and expiration date. A written contract protects both parties and ensures there are no misunderstandings.

5. Maintain professionalism: Even if the other agent declines the referral fee, keeping the conversation professional strengthens relationships for future opportunities. If they push back on the percentage, be open to negotiation within reasonable limits.

6. Follow up: Once the deal is in progress, check in periodically and ensure everything is on track. After closing, politely remind the receiving agent of the agreed-upon fee and request timely payment.

By confidently and professionally asking for a referral fee, agents can maximize their earnings while fostering strong industry relationships.

Elements of a real estate referral agreement

A well-structured referral agreement ensures clarity and fairness for both parties. Before sharing or accepting referral leads, it’s essential to outline key terms to avoid miscommunication and protect both the referring and receiving agents.

A strong referral agreement should include:

• Names and contact information: Clearly state the names and contact details of both the referring and receiving agents.
• Client’s name and contact details: Include the client’s information and preferred points of contact.
• Referral fee percentage: Specify the agreed percentage of the commission to be paid as the referral fee.
• Conditions for payment: Outline any requirements for the referral fee to be paid, such as the successful closing of a transaction.
• Expiration date: Set a timeframe to ensure the agreement remains valid for a specific period.
• Signatures of both parties: Both agents must sign to formalize the agreement.

Be prepared! Having a pre-made referral agreement saves time and ensures a smooth process when referral opportunities arise. A simple, ready-to-use contract allows agents to fill in the details and proceed efficiently.

Looking for a free, easy-to-use referral agreement template? Click the button below to download and get started today!

Reasons why agents refer clients 

There are many reasons to refer a client to another agent, but it always comes down to putting the client’s best interests first! A referral ensures they receive the expertise and service that best fit their needs. It may also be necessary when the work falls outside your scope or capacity, allowing the client to be better served.

Agents should consider referring clients to others in the following situations:

• Geographic limitations: A client is interested in buying or selling property outside the agent’s normal market or region.
• Specialized expertise: The client requires an area of expertise that falls outside the scope of the agent’s specialty. For instance, you might not specialize in commercial properties, luxury estates, or farms, but you know another agent who can better serve your client’s needs.
• Too many clients: If the agent has accepted too many clients and is overwhelmed, they will not be in a position to provide new clients with the time needed to handle their cases.
• Conflict of interest: An agent is faced with the possibility of a conflict of interest that would make objective representation of the client impossible.
• Better fit: The agent knows of another professional who will be a better match for the client’s needs and preferences.
• Legal or ethical requirement: The agent is legally or ethically bound to refer the client in compliance with regulations or professional requirements.
• Client request: In some instances, a client might want to be referred to another agent.
• Personal circumstances: The agent is not able to handle new clients because of personal circumstances, such as health issues or extended leave.
• Market conditions: arket conditions and trends that you are unfamiliar with may necessitate handling by another agent to be effective.
• Professional relationships: To develop professional relationships with other agents and brokers, referrals can help those relationships grow into a circle of trust and mutual benefits.

What to do when a referral deal closes

Wrapping up a referral deal properly helps maintain strong professional relationships and increases the chances of future referrals. While the referring agent may check in, proactive communication ensures a smooth process and keeps the door open for more opportunities.

Here’s what to do next:

• Confirm closure details: Confirm that everything regarding the deal has been closed out in accordance with the terms of the referral agreement. Every document needs to be signed and submitted!
• Notify referring agent: The referring agent or broker should be notified regarding the successful closure. Any details regarding completion may be provided.
• Calculate the referral fee: Calculate the referral fee amount based on the percentage of the commission paid as agreed upon. The amount must be calculated per the terms spelled out in the referral agreement.
• Make the payment: Pay the referring agent or broker in a timely manner. Use the payment type set by the referral agreement, which might be a bank transfer or check.
• Send documentation: Send a copy of the final closing statement, together with other documentation to be used, to the referring agent. Attach an itemization of how the referral fee was calculated.
• Thank the referring agent: Don’t forget to thank them for the referral. This part is instrumental in maintaining a good relationship for future referrals. A gift could also be a nice gesture to maintain future lead flow.

Frequently asked questions (FAQs)

What's the difference between a referral fee and a commission?

What's the difference between a referral fee and a finder's fee?

Can only real estate agents refer leads?

How are typical real estate referral fees structured?

Bringing it all together

A solid understanding of real estate referral fees fosters better collaboration between agents and ensures top-tier service for clients. Referrals help expand an agent’s network, match clients with the right expertise, and lead to positive testimonials that strengthen credibility.

By building a strong referral system, agents can continuously generate new business opportunities while creating a thriving real estate ecosystem based on trust, cooperation, and mutual success.

Have you worked on a referral deal? Share your experience below!

The post The Complete Guide to Real Estate Referral Fees for 2025 appeared first on The Close.

Real estate through the ages

1. Sears used to sell mail-order houses.

Think Amazon revolutionized purchase-and-ship shopping? Think again! In the early 20^th century, Sears, Roebuck & Co. let Americans order entire kit homes through Sears catalog homes — delivered straight to their doorsteps. Sears sold over 70,000 home kits before ending production in 1940. Today, these historic Sears homes are rare finds, often selling quickly, thanks to their unique charm and craftsmanship. Keep an eye out — you might spot one on the market!

2. Russia sold Alaska to the US for 2 cents per acre.

In 1867, Russia sold Alaska to the US for just $7.2 million — a mere two cents per acre, per the US Office of the Historian! At the time, many saw the land as a frozen wasteland, but it later proved to be a gold mine of natural resources like gold, oil, and timber. Talk about a bargain deal in real estate history!

Fun facts about famous homes and places

3. The iconic Hollywood sign was originally a real estate stunt.

The Hollywood Sign wasn’t always a symbol of fame and fortune — it started as a real estate ad! Originally reading “Hollywoodland,” the sign was built in 1923 to promote a new housing development. Over time, the last four letters were removed, and it evolved into the legendary icon of the entertainment industry we know today.

4. The largest residential home is in Mumbai, India.

Antilia, the largest residential home in the world, is located in Mumbai, India, per the Guinness World Records. Owned by Mukesh Ambani, the chairman of Reliance Industries, this 27-story building spans 400,000 square feet and is worth an astounding $2 billion. The house features luxury amenities such as three helipads, nine high-speed elevators, a 50-seat theater, a snow room, and a 168-car garage. It definitely fits the criteria for weird real estate listings!

5. A Canadian company owns the Mall of America.

The Mall of America is the largest mall in the US — it even has its own ZIP code! Owned by the Ghermezian family through their Canadian company, Triple Five Group, this megamall is part of their impressive real estate portfolio, including the West Edmonton Mall in Canada and the American Dream Mall in New Jersey. Originally from Iran, the Ghermezians have built some of the world’s most famous shopping destinations, proving their influence stretches far beyond North America!

Quirky real estate trends and superstitions

6. Corner properties are considered less desirable in some countries.

In some countries, corner properties aren’t always the most desirable. While they offer more visibility and extra sidewalk space, they also come with increased traffic noise, fewer neighbors, and even a higher risk of burglaries. Plus, some buyers find them too exposed to pedestrians, making privacy a concern. Would you consider buying a corner lot, or would you rather stay tucked away?

7. It’s bad luck to give a knife as a housewarming gift.

Gifting a knife for housewarming is considered bad luck in some cultures. According to superstitions, a knife symbolizes severing a relationship or cutting ties between the giver and the homeowner! But if you want to give a knife as a housewarming gift, include a penny with the knife. This way, the homeowner can return the penny to you as “payment” for the knife. So, technically, it’s not a gift! Crisis averted!

8. Architectural eagles symbolize freedom from mortgages.

There are many ways homeowners celebrate the full payment of their mortgage. One of the more popular (and deeply American) ways was to put a cast iron eagle on the outside of a home. The eagle represents strength and freedom, which align with financial independence.

Related: Emerging Real Estate Industry Trends

Eye-opening real estate prices and sales

9. The most expensive ZIP code in the US is 94027.

If you still don’t know this, the most expensive ZIP code is located in Atherton, California. According to data from Redfin, in February 2025, the median home price in Atherton was $12 million. Home to tech billionaires, celebrities, and Silicon Valley executives, Atherton’s exclusivity is maintained by large lots and strict zoning laws that limit housing density. This keeps property values sky-high and competition fierce!

10. A house sold on eBay.

In 2008, British adventurer Ian Usher took “starting fresh” to a whole new level — he put his entire life up for sale on eBay! This included his house, car, job, and even introductions to his friends in Perth, Australia. After a tough divorce, Usher decided to auction off everything he owned, with the winning bid coming in at $384,000 AUD ($305,000 USD at the time). Talk about a bold reset!

Related: Real Estate Agent Statistics, Insights & Trends

Real estate around the world

11. There is a toilet house in South Korea.

In South Korea, there’s a one-of-a-kind toilet-shaped house known as Haewoojae, or “Mr. Toilet House” . Originally the home of Sim Jae-Deok, a passionate advocate for better public restrooms, this quirky structure now serves as a museum dedicated to the history and evolution of toilets. Would you ever list a toilet-shaped property on the market?

12. A building in Vietnam is full of coffee shops.

Coffee lovers, take note! In Ho Chi Minh City, there’s a one-of-a-kind building called “The Cafe Apartment.” This nine-story structure is packed with unique coffee shops, each offering its own ambiance and specialty drinks. Over the years, the building has become a popular destination for locals and tourists, providing a variety of cafes where you can enjoy a drink while overlooking the bustling city. Perhaps the only factor influencing your choice of a coffee shop for the day is its interior design.

Related article: Interior Design Trends Ready to Take Over

13. Scottish homeowners paint their doors red to show they’re mortgage-free.

In Scotland, it’s said some homeowners celebrate paying off their mortgage in style — by painting their front door! This long-standing tradition is a proud symbol of financial freedom and a way to announce their big achievement to the world. After all, what’s more exciting than owning your home debt-free?

14. Japan demolishes houses after 30 years.

In Japan, homes are often demolished and rebuilt after about 30 years — a stark contrast to many countries where historic properties are prized. This practice is driven by many factors, including the necessity to meet evolving green building trends, earthquake safety standards, and a cultural preference for modernity. Would you tear down a home after just three decades?

Related article: Emerging Real Estate Industry Trends

15. Burj Khalifa’s elevator travels through 140 floors.

The Burj Khalifa isn’t just the tallest building in the world — it also has an elevator system that reaches incredible heights! One of its elevators travels through 140 floors, making it the third-fastest elevator globally. But that’s not all — the Burj Khalifa also holds records for having the most floors and the highest occupied floor of any building. Now, that’s what you call taking things to the next level!

16. Castles are for sale in the UK.

While homebuyers in the US are often drawn to the latest smart homes, those in the UK may find a different type of luxury appealing. If your client has millions to invest, tell them it’s possible to buy historic castles in Scotland and Ireland! These castles, often set in sprawling estates, offer luxurious living and a chance to own a piece of history. Forget smart locks — how about a moat?

FAQs

What are some interesting facts about being a real estate agent?

What are some fun facts about houses?

Why is it called real estate?

The final walkthrough

If you love some of these real estate fun facts, share them online (you can use our best real estate social media templates). They’ll be a sure hit for your audience. Do you have more interesting facts about real estate up your sleeve? We’d love to hear them. Let us know in the comments!

The post Real Estate Trivia: 16 Fun Facts You Must Know in 2025 appeared first on The Close.

This list features some of the best real estate postcard templates — whether you need just-listed designs, market updates, or FSBO outreach. We’ll also cover key design tips to ensure your postcards stand out and get results.

Download Your Real Estate Postcard Design Guide

Top 5 providers of real estate postcard templates & services

We know you’re excited to see some stellar postcards and get ideas for your own, but before you dive in, take a look at our favorite providers of postcard templates. Note that some offer customizable ones, and others are full service — everything from the design to the actual mailing!

	Best for	Mailing services
Coffee & Contracts	Trendy designs with ready-made, customizable templates in Canva to match your overall digital and mailer branding
ProspectsPLUS!	Agents seeking a full-service, real estate-specific provider with options for just about every postcard type and those looking to create direct mail drip campaigns
PostcardMania	Budget-conscious agents needing cost-effective, high-quality postcards
Canva	Agents craving absolute creative control to customize postcards and more
Fiverr*	Agents looking for unique, custom postcard designs created by freelance designers to match their personal brand
*Fiverr is a freelance marketplace where you can find a wide range of services; freelancers on Fiverr may offer mailing services. The availability and scope of these services depend on individual freelancers, so it's essential to review their offerings and ratings to ensure they meet your specific needs.

Now, let’s look at the different kinds of postcards to better understand how they create conversations, generate leads, and, ultimately, get you to the closing table more often.

Real estate postcards that generate seller leads

Listings are the heart of any successful real estate business, and keeping a steady flow of them is key to long-term growth. Postcards are a powerful addition to any marketing strategy — not only are they budget-friendly, but they also showcase local expertise in a tangible way.

1. Just-listed real estate postcards

• Best for: Generating seller leads (along with buyer leads for your subject property)
• When to send: Every time you set a new listing live

Find this just-listed postcard template at LCA Marketing Center

Find this just-listed postcard template at LCA Marketing Center

Find this just-listed postcard template at LCA Marketing Center

The just-listed postcard is a staple in real estate marketing for two key reasons.

1. It notifies buyers about a new property on the market; and
2. It reinforces your presence as a top local agent. 

A well-timed just-listed postcard can be a game-changer for establishing dominance in a neighborhood. When combined with other strategic mailers, it helps position you as the go-to real estate expert in your farming area.

2. Just-sold real estate postcards

• Best for: Generating new seller leads from the surrounding area
• When to send: Every time you close on a property

Find this just-sold postcard template at Canva

Find this just-sold postcard template at Canva

Find this just-sold postcard template at Canva

Every time you close on a property, make sure the neighborhood knows about it with a just-sold postcard. This not only highlights your track record of success but also reinforces your ability to get results for future sellers. Neighbors have already seen the sign in the yard, and your just-listed postcard — now it’s time to show them that you delivered.

Consistency is key. The more you promote your accomplishments, the stronger your brand becomes, and the better your return on investment. Just-sold postcards are a great way to maximize exposure, whether you’re targeting your farm area, past clients, or even expanding into new neighborhoods.

3. Expired listing real estate postcards

• Best for: Generating new seller leads from expired listings
• When to send: Immediately, every time a listing in your farming area expires

Find this expired listing postcard on Wise Pelican

Find this expired listing postcard template on Etsy, via IQ Realty Resources

Find this expired listing postcard template on PostcardMania

Find this expired listing postcard template on PostcardMania

Find this expired listing postcard template on Etsy via AgentsAssemble

Expired listings can be a goldmine — if you know how to approach them. The key is having the right message and perfect timing. There are a few effective strategies to consider.

1. You could acknowledge the seller’s frustration with empathy while offering a fresh, professional approach.
2. You might offer a bold guarantee, like selling within 60 days, if you’re confident in your process. 

Whatever strategy fits your style, the sooner you send these postcards after a listing expires, the better your chances of being the agent they turn to next.

4. FSBO real estate postcards

• Best for: Turning FSBOs into clients
• When to send: Whenever you see a listing that’s being sold by its owner

Find this FSBO postcard template at ProspectsPLUS!

Find this FSBO postcard template at ProspectsPLUS!

For sale by owner (FSBO) listings present a unique opportunity — these homeowners have already signaled their intent to sell but are going it alone. Your job is to show them why working with you makes the process smoother and more profitable. A well-crafted postcard is a great first step.

Focus on how you can solve common FSBO challenges without dwelling on the difficulties. Highlight your expertise, then follow up with a call or in-person visit to build trust and close the deal.

Converting FSBOs isn’t always easy — it takes patience and strategy. Many homeowners go this route to save on commission, but by offering helpful tips and demonstrating the work involved, you can often show them the value of hiring a pro. While not every FSBO will convert, those that do can become a steady source of listings.

5. Free home valuation real estate postcards

• Best for: Generating new seller leads
• When to send: Once before the busy selling season and then again as it wraps up

Find this home valuation postcard template on Etsy, via RealEstateTemplateCo

Find this home valuation postcard template on Etsy, via RealEstateStately

This home valuation postcard template can be found on Etsy, via IQ Realty Resources

Find this home valuation postcard template on Corefact

Most property owners are curious about exactly how much their home is worth. As an expert real estate professional, you can tell them. Creating a postcard that details your offer of a free, no-obligation market analysis is a strategy that’s almost guaranteed to get responses, particularly in a rapidly changing market.

You can also add a QR code that links to your website so that homeowners can instantly request their home value — no phone call or email needed. It’s an easy way to generate leads while keeping the process simple for them!

6. Stalled funnel real estate postcards

• Best for: Generating new seller leads
• When to send: Up to once a quarter

Find this stalled-funnel postcard template at ProspectsPLUS!

Find this stalled-funnel postcard template at ProspectsPLUS!

Find this stalled-funnel postcard template at Etsy via REdigitalassist

We’ve all had prospects who hung out in our lead funnel for months — people who just couldn’t seem to pull the trigger. Delivering a postcard message of encouragement to soon-to-be sellers can be very effective. If you want to maximize your return on investment, be sure your message reflects your market and lead category. 

Make your postcard recipients feel like the market isn’t just good — it’s good for them. It never hurts to instill a bit of FOMO in your potential sellers.

7. Homeowner tip postcards

• Best for: Establishing yourself as the homeownership expert
• When to send: Once a quarter or monthly

Find these homeowner tip postcard templates on Etsy via RealEstateExpress

This homeowner tip postcard template can be found on Etsy, via RealEstateMade

This homeowner tip postcard template can be found on Corefact

Find this homeowner tip postcard template on Etsy, via RealEstateMade

You helped them buy their home — now help them make the most of it! Many homeowners, from first-timers to seasoned pros, appreciate useful advice and seasonal maintenance reminders. Plus, this type of postcard reinforces your expertise and local market knowledge.

Keep the tone friendly and professional, avoiding anything that feels too instructive. Most importantly, tailor your tips to the local housing styles and climate, especially if you’re using a template. A well-crafted postcard like this keeps you top of mind and positions you as a valuable resource beyond the sale.

Real estate postcards that generate buyer leads

Many seasoned agents shy away from working with buyers, but that’s a huge mistake. Most listings come from your own past buyers. And house hunters are great to work with. You’ll spend time educating them on the homebuying process, showing them homes, and building solid relationships that you can nurture for years to come. These real estate postcards will help you find and convert buyer leads.

8. Open house real estate postcards

• Best for: Inviting the neighbors and prospective buyers to your events
• When to send: A week before every open house

Find this open house postcard template at LCA Marketing Center

Find this open house postcard template at Canva

Find this open house postcard template at Canva

Using direct mail to promote an open house boosts attendance and delivers valuable buyer leads. It also showcases your market activity to the neighborhood and reinforces your professionalism.

Open houses aren’t just for buyers — they’re a great way to attract future sellers too. Many homeowners expect one as part of their selling strategy, and a well-attended event highlights your commitment to marketing their property.

Pairing open house postcards with just-listed and just-sold mailers keeps your name in front of your farm area, reinforcing your status as a local expert. When done consistently, this strategy builds recognition and leads to more calls from potential clients.

9. Meet your agent real estate postcards

• Best for: Letting the area know about your services
• When to send: Within your first year at a new office

Find this new-agent postcard template at Corefact

Find this new agent postcard template at Canva

Find this new agent postcard template at Etsy via RealtyTemplateCo

If you’re new to an area or brokerage, spreading the word about your business is essential — and postcards are a great way to do it. Keep the tone upbeat and highlight what makes you stand out, focusing on how that benefits your community.

Instead of blanketing the entire city, target people who already know you. A new real estate farming campaign is the perfect way to become the go-to agent in your neighborhood. 

These postcards not only keep you top of mind but also give you a chance to showcase your personality, making your marketing feel more personal and relatable. Sending these postcards to personal contacts and neighbors can lead to early listings — sometimes right on your own street!

10. Real estate postcards for rental communities

• Best for: Turning renters into buyer leads
• When to send: Up to once a quarter

Find this rental community postcard template at PostcardMania

Find this rental community postcard at Coffee & Contracts

Many agents overlook renters in their farm areas, but they shouldn’t. Whether in suburban farm areas or dense metro cities like New York, rental communities are full of potential first-time homebuyers. With the right approach, targeted marketing can offer a serious return on investment.

Pairing renter-focused postcards with a homebuyer’s workshop is a winning strategy. The postcard promotes the event and highlights how homeownership can be more cost-effective than renting. It’s a powerful way to introduce buyers to the benefits of building equity while positioning yourself as the go-to expert.

Looking for more info on how to crush rental community prospecting? Check out our video below on how to convert these leads effectively.

11. Fence-sitting buyer real estate postcards

• Best for: Moving buyer leads down the funnel
• When to send: Up to once a quarter

Find this fence-sitter postcard at ProspectsPLUS!

Find this fence-sitter postcard at Vistaprint

When a homebuyer doesn’t feel any urgency in their decision-making process, it’s easy for them to fall out of your lead funnel. Obviously, you never want clients to feel rushed into a decision they aren’t ready for, but sometimes a message that creates a sense of urgency reminds them of what they really want.

How do you know if you’ve got a fence-sitter on your list? These postcards are perfect for any prospect who is getting slower at returning calls and texts, who decided not to stop by that open house, or who is considering signing another year-long lease.

Postcards that generate referrals

Referrals are the lifeblood of any real estate business. According to the 2024 National Association of Realtors Member Profile, the typical Realtor earns 21% of their business from referrals. That’s still a significant portion, making it essential to build and nurture those relationships consistently. The sooner you start, the stronger your referral network will become.

12. Personal sphere real estate postcards

• Best for: Generating buyer and seller leads
• When to send: Twice a year

Find this personal-sphere postcard template at ProspectsPLUS!

Find this personal-sphere postcard template at ProspectsPLUS!

When you’re an active agent, your sphere knows that they’re going to hear from you. Whether it’s text messages, phone calls, email, or lively conversation at the local watering hole, the longer you do this job, the more your social circle comes to expect it from you.

Do the unexpected and include them in your postcard mailing. Your messaging can be a little lighter and more familiar, but ensure it’s designed to keep you top of mind for referrals.

13. Referral appreciation real estate postcards

• Accreditation:

Find this referral thank-you postcard template on Etsy, via HelloMarketingStudio

Find this referral generation postcard template on Etsy, via BlueandPoppy

Find this referral generation postcard template on Etsy, via RealEstateTemplateCo

The buyers and sellers you’ve worked with can be your greatest marketing asset. Leverage those relationships with a postcard that actively solicits referrals. Then, follow up with a phone call 24 hours after the postcard has been received. Keep your messaging gracious and thoughtful, and your past clients are sure to step up and refer others to you when it counts.

14. Home purchase anniversary real estate postcards

Find this purchase-anniversary postcard at ProspectsPLUS!

Find these purchase anniversary postcard templates at Etsy via REdigtialassist

Keeping in touch with happy clients is the best way to stay top of mind when they, or people they know, are in need of a real estate pro. Create a calendar or set up your customer relationship manager to track every closing you’ve participated in so you can use the anniversaries as a chance to send a postcard with a short, handwritten note. 

You can do this for the next five years to keep generating referrals from each transaction you helped close. Consider adding a small referral gift — like a coffee shop gift card or a sweet treat — to thank clients who send new business your way.

Postcards for farming

Staying in touch with your community keeps you top of mind with potential clients. Regular contact reinforces your expertise and helps establish you as the go-to local agent.

It often takes multiple touchpoints before someone decides to work with you, and consistency is key. Postcards are a powerful tool in a well-rounded marketing strategy, helping you stay visible and build trust over time.

15. Farming real estate postcards

Find this farming postcard template at Corefact

Find this farming postcard template at Etsy, via RealEstateTemplateCo

Part of working a real estate farm area is showing that you’re active in the community and care about its long-term growth. You should limit this type of mailing to a small area because the point is to remind your neighbors that you’re a local with a vested interest in the value and potential of the community. 

Farming postcards can also prompt potential clients to consider what their home is worth — a surefire way to generate conversations with potential sellers.

16. Holiday real estate postcards

Find this holiday postcard template at Wise Pelican

Find this holiday postcard template at Coffee & Contracts

Find this holiday postcard template at ProspectsPLUS!

Special occasions are excellent opportunities to connect with your entire sphere. Major holidays are ideal, but don’t forget important but overlooked milestones like back-to-school week, Independence Day, and birthdays. 

Do your best to time the delivery of mail for maximum effectiveness. A daylight saving reminder won’t do much good if it arrives two weeks early and certainly won’t work if it arrives late. Make your message positive and concise, and maybe even include an invitation to connect over coffee.

17. Special event real estate postcards

Take advantage of major local events and create a calendar of can’t-miss happenings. Sports team schedules, concerts, local festivals, and even school calendars can become permanent fridge additions. Just be sure your name, contact information, and a call to action are prominently displayed.

Special event postcards are effective because consistency breeds effectiveness. If someone gets the football schedule from you every year, they’ll look forward to it and make it a fixture in their kitchen. Just make sure you pick a theme that is timely, reflects your personal brand, and appeals to your local audience.

18. Recipe postcards

This recipe postcard template can be found on Etsy, via TheCreativePageCo

This recipe postcard template can be found on ProspectsPLUS!

This recipe postcard template can be found on Etsy, via REMarketingPRO

This recipe postcard template can be found on Etsy via PinkpopsDesign

This recipe postcard template can be found on Etsy, via AgentsAssemble

Sharing a favorite recipe is a simple yet effective way to stay top of mind while offering something genuinely useful. Choose one that’s personal to you and fits the season — it might just become a mailer your audience looks forward to.

A well-loved recipe can leave a lasting impression. Many clients save these postcards long after receiving them, making it a warm, memorable way to stay connected.

19. Market update postcards

Find this market update postcard at Coffee & Contracts

Find this market update postcard at Coffee & Contracts

Find this market update postcard at Etsy via HelloMarketingStudio

Find this farming postcard template at Etsy, via ItIsWellCollective

With the ups and downs of the real estate market, homeowners appreciate regular market updates. Sending a polished, insightful postcard — monthly or quarterly — keeps you top of mind and reinforces your expertise. When it’s time to sell, you’ll be the first agent they think of.

Other real estate postcards to consider

20. Investor postcards

Find this investment postcard at Etsy via ElevatedAgent

Find this investor postcard at ProspectsPLUS!

Find this investor postcard at ProspectsPLUS!

Today’s market is much different than it was 20 to 30 years ago. More and more are getting into real estate investing, both long- and short-term, and they need your help. Send out postcards in your area announcing that you’re ready to help them through the process. Once you help with that first property, they’ll likely keep coming back.

21. Lifestyle postcards

Find this lifestyle postcard at ProspectsPLUS!

Find this lifestyle postcard at ProspectsPLUS!

Big changes happen at specific points in prospects’ lives, like when the last child moves out of the house or they reach retirement age. That’s when they re-evaluate their homeownership status and options for change. Hit these potential movers with some lifestyle options they may have yet to consider. If you specialize in working with empty nesters or certain lifestyles, target them with postcards highlighting specific benefits to encourage them to make the move.

22. Recruiting postcards

Find this recruiting postcard at 99designs

Find this recruiting postcard at ProspectsPLUS!

To build a successful business that doesn’t rely on you constantly having to do all of the work, building a team or expanding your brokerage ranks is essential. If you’re ready to start scaling your business, it’s time to start recruiting real estate agents. Choose a mix of new and experienced agents to target with postcards tailored to each group.

Frequently asked questions (FAQs)

Who do I send my postcards to?

What information do I put on my real estate postcard?

What is a CTA on a real estate postcard?

What design elements are important on a real estate postcard?

Should I include a headshot on my postcards?

What about the NAR disclaimer?

The post 22 Real Estate Postcard Templates To Generate Leads [+Design Guide] appeared first on The Close.

Join me as I explore some of the best real estate agent websites and find inspiration for your own!

1. Shannon Lavin

• Best feature: Off-market listings highlight

Shannon Lavin’s website, particularly its off-market listings page, is a treasure trove for those seeking exclusivity in the bustling Boston real estate market. This is a game-changer for buyers and sellers who desire privacy and early access to premium properties before they hit the mainstream market. 

It’s a brilliant strategy for real estate agent websites to leverage the allure of exclusivity and direct access, making her website a go-to destination for elite buyers and sellers in the competitive Boston landscape.

2. Grist Realty

• Best feature: Showcasing additional real estate services

Grist Realty’s dedicated builder services page is a standout feature that brilliantly showcases its comprehensive support for homebuilders. This unique offering on its website not only highlights its specialized expertise in this niche but also provides a strong selling point for potential clients in the construction and development sectors. By detailing services such as market analysis, advertising strategies, and sales management, Grist Realty positions itself as a key partner for builders looking to maximize the marketability and success of their projects. 

3. Campion and Company

• Best feature: MLS (Multiple Listing Service) search accessibility

Diving into the world of real estate is made refreshingly simple with the easy MLS search feature prominently displayed on the homepage of Campion and Company’s website. 

This intuitive IDX tool invites users to start their property journey the moment they enter the site, simplifying the search process and enhancing the overall user experience. It’s a clever strategy that facilitates immediate engagement and showcases the agency’s commitment to efficiency and user-centric design.

4. Dora Puig

• Best feature: Keeping clients informed with updated news

Dora Puig’s real estate website stands out with its up-to-date real estate news, making it an invaluable resource for anyone invested in the Miami market. This feature provides visitors with valuable insights, market trends, and the latest updates in real estate, directly contributing to informed decision-making. 

By incorporating current news into her website, Dora positions herself as a leading authority in the industry. She keeps her clients and visitors well-informed, enhancing their ability to make timely and effective real estate decisions. 

5. Angela Andronache

• Best feature: Expert insights through engaging blog posts

Angela Andronache’s top rated real estate website goes beyond showcasing properties by offering a blog that serves as a rich resource of informative posts. Her “Stories” section is a deep dive into various aspects of the Miami real estate market, providing readers with expert advice, trend analysis, and valuable insights. By consistently updating her blog with relevant and engaging content, she keeps her audience well-informed and connected, encouraging frequent visits to her site for more than just property listings.

6. Baylor Real Estate

• Best feature: Niche market mastery

Baylor Real Estate Alerts’ website focuses solely on the Baylor University area, delivering tailored listings and insights for students, faculty, and investors. Its niche approach ensures that every property listing and market update is relevant to the Baylor Bubble. By catering to this specific community, the platform stands out as a go-to resource, showcasing how specialization enhances service and accessibility.

7. Gold Peach Realty

• Best feature: Seamless client engagement

Gold Peach Realty smartly integrates a contact form on its homepage, streamlining the process for clients to reach out. This strategic placement enhances user experience by providing immediate access to inquiries and effectively captures leads directly from the landing page. The immediate visibility of the contact form invites potential clients to connect, ask questions, or express interest in properties, thus increasing the chances of converting visitors into clients.

8. Anasuya Engel

• Best feature: Minimalistic approach

Embracing a minimalist design, Anasuya Engel’s website focuses squarely on a clear, direct call to action. This simple landing page approach strips away any potential clutter, allowing visitors to understand what steps they need to take next immediately — let them help you find your dream home. 

The prominence of the call to action right on the homepage streamlines the user experience. It enhances lead capture efficiency by reducing the time and effort needed to engage potential clients.

9. Christian Angle Real Estate

• Best feature: Showcasing their achievements from the start

The homepage of Christian Angle Real Estate immediately draws by showcasing its impressive accolades, effectively building trust and credibility right from the first interaction. This strategic display highlights the firm’s industry recognition and success, setting a tone of professionalism and excellence. 

This approach reassures potential clients of the high-quality service they can expect, positioning Christian Angle Real Estate as a top-tier provider in the market.

10. Chris Cortazzo

• Best feature: Vivid storytelling through video

The engaging video strategically placed on the homepage of Chris Cortazzo’s website not only captures the stunning vistas of Malibu, but also conveys the distinctive lifestyle of the area, offering potential clients a glimpse into the day-to-day experiences they might enjoy. This is a real estate broker website that does this seamlessly — these videos effectively evoke the local ambiance, combining visuals of scenic landscapes with the upscale living spaces that define the region.

11.  Carrie Wells

• Best feature: Welcoming a global audience

Single property websites should offer a language selection option to enhance accessibility for an international clientele and emphasize inclusivity in the global real estate market — which Carrie Wells’ website does perfectly. 

This feature facilitates a smoother browsing experience, enabling visitors from different linguistic backgrounds to navigate the site in their preferred language. Such a thoughtful integration expands the reach and significantly improves user engagement by making the content more relatable and easier for non-English speakers to understand.

12. Jade Mills

• Best feature: Informative market insights

Jade Mills Estates’ blog is a crucial resource for anyone interested in the luxury real estate market dynamics. It offers detailed analyses of market trends, providing readers with deep insights into what’s shaping the real estate landscape. 

This content is informative and strategic, helping potential buyers and sellers make well-informed decisions based on current market data. By consistently updating this blog with fresh and relevant market insights, Jade Mills establishes her website as an authoritative source.

13. Casagrande Team

• Best feature: Center stage branding

Strategically placing its branding at the center of the homepage, The Casagrande Team’s website immediately engages visitors with a solid and memorable impression of who the team is. Such prominent real estate branding ensures that potential clients feel secure knowing they are dealing with established professionals from the first click.

14. Craig Morris

• Best feature: Highlighting expertise

One of the best realtor websites featuring a detailed bio is Craig Morris’ site, which effectively bridges the gap between potential clients and his professional world. This strategic feature humanizes his brand, enhancing transparency and trust. By showcasing his expertise and successful career, the site instills confidence — an essential factor when selecting a real estate agent for major financial decisions.

15. The Rubin Team

• Best feature: Enhanced accessibility

The Rubin Team’s website excels in user accessibility by prominently displaying their phone number on their landing page, even providing a vCard or Virtual Contact File (VCF). This thoughtful design ensures that clients can easily find contact information without needing to search through multiple pages, streamlining communication and inviting immediate inquiries.

Creating an effective real estate agent website

Creating an effective real estate agent website requires thorough planning, strong branding, and a design that keeps users top of mind. Here’s a short guide to get you started:

1. Define your goals and audience

• Identify your primary audience (i.e., buyers, sellers, investors, renters)
• Define your website’s purpose (lead generation, branding, property showcasing)

2. Select a website platform

• DIY builders: Wix, Squarespace
• Real estate-specific: Agent Image, Placester, IDX Broker
• Custom development: WordPress plus real estate plugins for more flexibility

3. Design a user-friendly layout

• Use a clean, modern design with high-quality images
• Ensure easy navigation with simple menus
• Optimize for mobile responsiveness

4. Integrate an IDX listing system

• Connect MLS to display live property listings
• Allow visitors to search with filters (i.e., location, price, property type, etc)

5. Create key pages and content

• Home: A compelling introduction with CTAs (Call to Action)
• About: Showcase your experience, expertise, and credibility
• Listings: Display properties with high-quality images, descriptions, and virtual tours
• Blog: Share market trends, tips, and community insights
• Testimonials: Showcase client reviews to build trust
• Contact Page: Include a lead form, phone number, and social media links

6. Implement lead capture features

• Add lead generation forms and newsletter sign-ups
• Offer free resources like a home valuation tool or buyer’s guide
• Use live chat or chatbot for instant engagement

7. Maintain and update regularly

• Keep listings current and remove sold properties
• Update blog content and market insights
• Monitor analytics to track visitor behavior and improve engagement

Tips to make your website stand out

Look, there are a lot of amazing real estate agent websites out there. If you want yours to stand out, you need to be deliberate about how you design, structure, and market your site. Here are some tips to make your real estate website truly shine.

Tip 1: Leverage high-quality visuals

Tip 2: Optimize for mobile

Tip 3: Include valuable content

Tip 4: Implement strong calls to action (CTAs)

Tip 5: Strengthen your brand identity

Tip 6: Showcase client testimonials and success stories

Tip 7: Offer live chat for instant engagement

Tip 8: Focus on SEO (Search Engine Optimization)

Frequently Asked Questions (FAQs)

What are the essential features my real estate website should have?

How can I ensure my real estate website is optimized for search engines?

Is it better to use a website builder or hire a web developer for my real estate website?

Bringing It All Together

Bringing your real estate agent websites to life should be as dynamic and unique as your brand! Whether you’re a high-energy, go-getter agent with a flair for luxury homes or a laid-back, approachable personality specializing in cozy family residences, your website should shout that the moment a prospective client clicks on it. 

Ultimately, have fun with it! Your website is your digital handshake, the first and often most critical interaction potential clients have with you. Make it count, make it memorable, and most importantly, make it so undeniably YOU that when clients land on it, they can’t help but think, “This is exactly who I need to call!”

The post The 15 Best Real Estate Agent Websites for 2025 appeared first on The Close.

Even if you know every one of the 141 real estate terms on this list and how to use them, your clients expect you to be their interpreter. This comprehensive list of real estate definitions will help you ensure you’re communicating with clients effectively. After all, great communication leads to closed deals.

4 Key Interest Rate Questions That Could Save Your Clients Money

Table of Contents | Glossary

# | A I B I C I D I E I F I G I H I I I J I K I L I M I N I O I P I Q I R I S I T I U I V I W I X I Y I Z

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1031 Exchange

This tool, also known as a like-kind exchange, allows investors to defer paying capital gains taxes on the sale of a property. The catch is that they must sell one property and buy a similar one within a set time frame. If you want to work with real estate investor clients and understand this more in-depth, read our simple yet thorough rundown on 1031 Exchange Rules.

A

Acceleration clause

Does your client have a mortgage contract with an acceleration clause? Make sure they understand that this clause allows their lender to demand immediate repayment of the loan in full if specific requirements are not met.

Active contingent

If a property has an active contingent status, it means that a buyer has submitted an offer to purchase a property, but the sale won’t be finalized until certain conditions, or contingencies, are met. A contingency might be the buyer selling their current house, requiring certain repairs to be made, or obtaining a clean termite inspection.

Active with contract

A property that’s active with contract — also known as active under contract  — is a property that has an offer with contingencies that have yet to be met. There is always a chance a sale might not go through, especially in today’s wild interest rate market.

Addendum

An addendum is simply an addition or supplement to a contract. They modify or clarify parts of an existing contract and must be agreed upon and signed by all involved parties. One of the most common addenda, and an easy example for clients to understand, is the lead paint disclosure for homes built before 1978, which alerts buyers to potential hazards.

Adjustable-rate mortgage (ARM)

An ARM is a home loan that does not have a fixed interest rate. Since an ARM’s interest rate fluctuates over time depending on various market factors, some experts believe they save borrowers money in the long run, as reported by the Business Insider. The disadvantage, of course, is that ARMs make it hard to budget since there is always the possibility (and current reality) of rates increasing.

Clients should always consult with their mortgage professional when it comes to specific questions about their mortgage, but it’s helpful to be able to explain the basics.

What About ARMs? 4 Loan Questions Worth Asking

Adjustment date

Clients with ARMs need to know their adjustment date because that’s when they may see a change to the interest rate in an adjustable-rate mortgage. The time between a change in rates is called an adjustment period, and the length of this period depends on the loan. For most ARMs, the adjustment date occurs annually.

Amenity

An amenity is a feature that enhances the overall attractiveness or functionality of a property. Some examples include swimming pools, fitness centers, covered parking, and laundry facilities. 

Amortization

Amortization is the preset schedule of mortgage loan payments — including interest — over time. Generally, the payments are scheduled monthly over a period of 15 or 30 years. 

Annual percentage rate (APR)

Clients may be confused about the difference between an interest rate on their mortgage loan and an APR. Simply put, the APR is the total amount, including interest and fees, that it costs to borrow money, all expressed as a percentage.

Appraisal

An appraisal is an estimate of how much a home is worth. If an appraiser assigns the property a lower value than the buyer has offered, the lender might not fund the entire loan amount. This can be a stressful point in the homebuying process for clients.

Fear not, there are options! Negotiation is on

e of the best tools in the arsenal of a successful real estate agent. You could work something out with the seller, ask them to bring down the price to the appraised value, or convince the buyer to put more money down to reduce the loan amount. And if the appraisal is really off the mark, you can always challenge it.

Appreciation

An appreciation is an increase in the value of a property over time. This happens because of a variety of factors, like inflation, property improvements, or local developments that make the neighborhood the new “it” spot. 

To calculate a property’s projected increase in value over time, divide the change in value by the initial cost of the property and multiply it by 100. Appreciation may not be a homebuyer’s main motivator when buying a house, but it should always be a consideration. After all, (shout it from the rooftops!) real estate is one of the safest and most profitable investments one can make.

As-is

A property being sold as-is simply means that the property is being sold in its current condition without any improvements, repairs, guarantees, or warranties before the sale. Do you have a client who binge-watches HGTV, dreaming about flipping a house? Well, a home being sold as-is may just be the fixer-upper of their dreams.

Assessed value

This is the dollar value the local government assigns to a home based on square footage, condition, and relative comps. It helps determine how much owners will pay in property taxes. It’s often presented as a percentage of the fair market value.

Assignment

This is when the seller signs over all rights and obligations related to a property to the buyer before the actual closing. This is a bit of legalese and probably not a term you’d use in casual conversations with clients.

Assumable mortgage

You don’t hear much about assumable mortgages or the assumption of mortgages anymore. If a client asks, it means the buyer will take over the seller’s existing mortgage and house-related debt instead of creating a new mortgage loan with current interest rates.

While this type of arrangement may be attractive in today’s environment of rising interest rates, you’ll want to explain to your clients that it’s very difficult to take over a mortgage. This is thanks to the Garn-St. Germain Depository Institutions Act of 1982. Basically, the law protects lenders from assumable mortgages with below-market interest rates. Most mortgages now have a “due-on-sale” clause, which requires the borrower to repay the loan in full if they sell the property.

B

Balloon mortgage

Clients who opt for a balloon mortgage will pay smaller monthly payments at first, followed by one larger-than-typical payment (the balloon) at the end of the loan. They generally come with lower interest rates and the ability to get a higher loan amount. Common in the 2000s, they aren’t as popular now. The final balloon payment can be massive; one misstep could leave the borrower upside down. 

Biweekly mortgage

Borrowers with a biweekly mortgage will submit their mortgage payments twice a month instead of once. This results in 26 payments annually, which means paying one extra month per year. This means a borrower could pay their loan off sooner than those with traditional payment schedules.

Bridge loan

A bridge loan is a short-term loan that helps a buyer cover costs in the interim between buying a new house and selling one. Got clients who found their dream home before selling their current one? A bridge loan can be a real lifesaver in this situation. 

Broker

Clients may want to know the difference between an agent and a broker. After all, part of the commission they’re paying may go to a broker. You can explain that a broker is equivalent to a manager in the real estate world: an agent with a certain level of experience who has taken the state-mandated education and examinations to meet the requirements to become a licensed real estate broker. (Of course, some states refer to a real estate agent as a “broker.”)

Buydown

A buydown is a financing technique that allows borrowers to secure a lower interest rate on their mortgage. This can involve buying discount points as a one-time fee paid at closing. A buydown can also exist when a seller makes initial payments toward the mortgage to reduce the interest rate, usually in exchange for a higher purchase price.

C

Call option

This gives a buyer an exclusive right, or option, to purchase a certain property at a set time for a specified price.

Cash-out refinance

When homeowners have equity in their homes, they can refinance their property and take the equity out as cash. It generally results in a higher interest rate or additional points, but it’s a way for homeowners to leverage their equity in a property. 

Certificate of eligibility

When working with veterans, you’ll want to prepare them for a fair amount of paperwork. The certificate of eligibility is an official form certifying that a veteran has met the terms that qualify someone for a VA loan. VA loans might have a lot of red tape, but they can be excellent, affordable options for service members and their spouses.

Certificate of reasonable value

This is a form from the Department of Veterans Affairs outlining the maximum amount that can be issued to a borrower of a VA loan. Like we said, lots of paperwork.

Chain of title

As clients get ready for closing, they’ll hear a lot about the title. The chain of title is a historical record of previous owners of a property that’s essential in establishing the legal ownership of the property. An established chain of title helps protect the buyer from future challenges to ownership. A title search helps create that chain and is usually conducted by a lawyer or title company prior to closing.

Clear title

A clear title indicates that there are no liens or encumbrances on the property (yay!). It’s also known as a just title or free-and-clear title. A title with liens or encumbrances has a cloudy title. Properties can have their titles cleared, but it can take a long time and may even require legal action.

Closing

This is a realtor’s payday! The closing date is the agreed-upon date when a property changes ownership from the seller to the buyer. Definitely worthy of a happy dance!

Closing costs

Closing costs are all of the additional fees related to the purchasing or selling of a property. They are generally between 3% and 5% of the purchase price and account for appraisals, taxes, attorney fees, and title insurance. 

Clients will need an exact accounting of the total amount owed in closing costs. They’ll also need to ensure that those funds are properly wired or deposited on the closing date.  

Remember that time when a wire transfer didn’t go through from a third party who was hiking on top of a mountain and couldn’t be reached? Prepare your clients to double, triple, quadruple-check everything related to these costs and their transfer.

Co-borrower

A co-borrower is someone who shares the responsibility of paying back a loan. Don’t you love it when the co-borrower is the client’s dad who comes along on the inspection and is suddenly an expert on chimney engineering? 

Commission

My guess is that you know exactly what a commission is and how it works — but your clients might have some questions.

A commission is the amount charged by the real estate agents who lead the transaction. It is almost always paid by the seller. Commissions are generally 6% of the purchase price of the property, and are usually split between the buyer and seller agents, and then between the agents and their brokers.

Community property

In a community property state — namely Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin — any real estate purchased during a marriage belongs equally to each spouse, 50-50.

Comparable sales

Comparable sales (also known as “comps”) are used to establish a reasonable price for a property. Comps are recently sold properties in the area that have similar features to the one being evaluated.

Of course, the ultimate pricing decision lies with the seller, but we hope they listen to you because you’ll come up with a price based on the science and art of comparative market analysis (CMA).

Comparative market analysis (CMA)

When you sit down for your listing appointment, one of the most important things you’ll have with you is your comparative market analysis. This is an estimate of a property’s worth, determined by local comparable sales, market data, sale history, and location. CMAs are a place where an agent can really show off their knowledge and professional value.

Compound interest

The concept of compound interest can perhaps best be described by Benjamin Franklin, who allegedly said, “Money makes money. And the money that money makes, makes money.” Albert Einstein supposedly called compound interest mankind’s greatest invention. 

It’s essentially the idea that if you invest your returns into more investment, that money multiplies. This works in your client’s favor if they are collecting on investments but against them when applied to debt.

Construction loan

A construction loan is a short-term loan that covers the cost of building a property until the owner can secure long-term financing.

Contingency

A property is considered contingent when the buyer has made an offer to purchase it — as long as certain conditions are met. A home inspection is the most common and well-known contingency. Contingencies can also mean repairs that need to be made or the buyer’s home selling. Whatever these contingencies are, they have to be resolved before the property can close.

Conventional mortgage

Conventional mortgages are the ones that aren’t part of a specific government program, such as Fannie Mae, Freddie Mac, USDA, or the VA. Generally, borrowers who go the conventional route are lower risk, offer a larger down payment, and don’t require mortgage insurance.

Help Clients Navigate a Volatile Mortgage Environment

Convertible adjustable-rate mortgage

It’s kind of like if a fixed-rate mortgage and an ARM had a baby. A convertible adjustable-rate mortgage is a mortgage with a much lower interest rate at the start of the loan, where the interest rate fluctuates during the life of the loan, usually every six months. 

But, unlike a traditional ARM, a borrower can switch to a fixed-rate mortgage. These mortgages were developed in the 1980s in an era of double-digit interest rates when borrowers were hopeful that the rates wouldn’t rise much more.

Cost of Funds Index (COFI)

Used to calculate variable interest in adjustable-rate mortgages, COFI is a benchmark determined by average regional interest rates incurred by financial institutions.

Customer relationship manager (CRM)

A CRM helps agents track leads in their sales funnel. Robust CRMs have email and text drip campaigns, and many even let you call prospects and track responses directly through the system. The best CRM is one you’ll use, so make sure it’s user-friendly, has all the bells and whistles you need, and helps you reach out to prospects and leads quickly and consistently.

D

Days on market (DOM)

Simply put, this measures the number of days a property is for sale, from the day it is listed on the multiple listing service (MLS) to the day a buyer and seller are under contract.

As a seller’s agent, you’re counting the days a listing is on the market. Chances are your client is, too, which is why she’s calling you before breakfast.  

Deed

The deed is a legal document recording the transaction of title (or official ownership transfer) from the seller to the buyer. It is recorded at the local county clerk’s office. It’s really just a combo of legalese and paperwork, but everyone feels better having a tangible representation of ownership.

Deed in lieu of foreclosure

This is when a homeowner turns a deed over to the mortgaging bank to avoid going into foreclosure. This allows the borrower to avoid personal liability for the remaining unpaid debt. In some cases, they may be able to continue living on the property.

Default

To default on a mortgage loan means the borrower has stopped submitting monthly payments.

Delinquency

Borrowers can go into delinquency if they have stopped paying their monthly mortgage loan payments for a certain time period. At this point, the lender has the option to start foreclosure proceedings.

Debt-to-income ratio (DTI)

As the name suggests, this is the ratio of a homebuyer’s debt to their income. This is an important calculation for lenders when considering mortgage applications and whether borrowers can afford to make payments. You can help your clients calculate their DTI by adding together all of their monthly payments and dividing the total by their gross monthly income.

Discount points

Borrowers may pay these fees at closing to secure a lower interest rate.

Down payment

A down payment is the amount of money a buyer pays for a property up front, usually a percentage of the total purchase price. A crucial question for your clients: How much can you put down? After a good look at their finances, a nice long chat with their financial advisers, and an extensive application with a mortgage lender, they might finally have an answer. 

Conventional loans often require 20% of the purchase price, while government-backed mortgages could require much less (sometimes nothing!). Loans with less than 20% down often require buyers to pay private mortgage insurance (PMI) until they reach a certain equity ratio.

Due diligence period

This period is a specified amount of time after an offer is made during which the buyer can inspect the property and review relevant documents. It’s a chance for the buyer to be sure in their decision to move forward with the purchase. It’s also a period when seller’s agents tend to bite their nails, breathe rapidly into paper bags, and — oh, yes, they will have that third margarita, thank you!

Due-on-sale clause

Also called an acceleration clause, this requires the borrower to repay the loan in full when a property (or collateral) is sold. It all goes back to that riveting Garn-St. Germain Depository Institutions Act, which was put into place to protect lenders from assumable mortgages.

E

Earnest money deposit

First-time buyers may be new to this concept, so it is worth bringing it up at the beginning of the home search process. Also known as a good faith deposit, it’s the amount of money a buyer puts in escrow to show their commitment to purchase a property. Usually, a small percentage (from less than 1% to 3%) of the purchase price, it goes toward the purchase at closing. If the sale falls through, the seller could keep some or all of the earnest money, depending on the situation.

Easement

When examining a property — to buy or sell — it’s crucial first to understand if there are any easements on the property. An easement is a legal right for a non-owner to use or cross a property for a specific purpose while the title remains with the owner. 

One example is someone using a private road to access their own land. Another one that is popular down here in Charleston is a conservation easement. This means the owner has donated a portion of the property to be protected because it has historical, cultural, or environmental significance. The owner can receive tax credits in exchange.

Eminent domain

This is the government’s right to use private land for a specific, public purpose after compensating the owner.

Encroachment

An encroachment is a violation of an owner’s property rights by building or extending onto their land without permission. For example, if you build a fence and part of it is in your neighbor’s yard, that’s encroachment.

Encumbrance

You just never want to hear that a property has an encumbrance. Never. Want to. Hear it. And if you do hear it, you need to explain it to your client. 

An encumbrance is a claim against a property, such as a mortgage, lien, or easement. These can affect the transferability of ownership.

Equal Credit Opportunity Act

This was groundbreaking legislation when it was passed in 1974. Today, it offers agents the opportunity to further the cause of equality and justice in our professional transactions. The act protects potential borrowers against creditors who would discriminate against their mortgage application based on race, color, religion, national origin, sex, marital status, age, or acceptance of public assistance.

Equity

This is the amount of property that a person (not the bank) actually owns. For example, if you put a down payment of 20% on a $200,000 home ($40,000) and get a loan for the rest, your home equity is $40,000. Your equity will increase as you pay down the loan and as your property value increases. However, it could decrease if you take out more loans against the property or if the home rapidly declines in value.

Escrow

A third party holds funds in escrow during the real estate transaction, releasing them at closing. Generally, this refers to earnest money funds. Some states have laws on the books requiring escrow account holders to pay interest on these funds, though banks are often exempt.

Examination of title

Before closing, everyone will want to make sure that the title is clear. Title companies research a property’s transfer of ownership through public records to trace its history and ensure there are no encumbrances that could affect the purchase.

Exclusive listing

When walking through a new listing agreement, it’s important to explain all of the different representation options. An exclusive listing gives one real estate agent a property listing and a certain amount of time to get the property sold. That agent is expected to find buyers and oversee the transaction during this period. This is a good topic to cover when you’re explaining commissions, percentages, and how they are split.

F

Fair Credit Reporting Act

This one doesn’t get as much attention as the Fair Housing Act, but it was a game changer for the industry. Before the Fair Credit Reporting Act, consumers were not nearly as protected, and abuse of personal data ran rampant.

Enacted in 1970, the Fair Credit Reporting Act ensures that files containing personal information gathered and held by consumer credit reporting agencies are handled fairly, accurately, and privately. It also gives consumers access to their own information.

Fair market value

The fair market value is essentially the price that the market can bear, borne out by the fact that both the buyer and seller agree upon it. Make sure your clients don’t confuse it with the appraised or assessed value!

Fannie Mae

The Federal National Mortgage Association, colloquially known as Fannie Mae, is one of the most active sources of mortgage financing in the country. It is a government-sponsored enterprise that allows medium- to low-income families and individuals to obtain affordable mortgages.

Fee simple

This is a type of common property ownership in which there are no conditions or restrictions, and the property is owned absolutely.

FHA mortgage

FHA mortgages are government-backed property loans insured by the Federal Housing Administration. They differ from conventional loans in that the down payment and credit score requirements are lower. That’s why they’re especially popular with first-time homebuyers.

Fixed-rate mortgage

With a fixed-rate mortgage, the interest rate is set and does not fluctuate during the life of the loan. This gives the borrower the stability of knowing the rate will stay the same over the course of the 15 or 30 years of the loan. If interest rates dip significantly, borrowers can refinance their loans but will have to pay closing costs.

For sale by owner (FSBO)

This is when the owner of a property publicly lists it for sale without the assistance of a licensed real estate agent. Agent slowly raises palm to forehead. Many FSBOs are hoping to save money by not paying a seller agent’s commission fee. But given the cost savings that agents typically bring to a transaction, thanks to their marketing and pricing expertise, they probably won’t. 

Foreclosure

If a property owner stops paying their mortgage payments, usually for at least 90 days, the lender can start foreclosure proceedings. This can lead to a short sale, foreclosure auction, and/or the lender taking possession of the property.

Freddie Mac

Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation or FHLMC. It’s a privately traded, government-backed company that offers greater accessibility to mortgage loans and provides stability in the market.

H

Home equity conversion mortgage

A home equity conversion mortgage is a type of reverse mortgage offered by the FHA that allows the borrower to withdraw a portion of their equity in a property.

Home equity line of credit (HELOC)

This is a line of credit based on the equity one has in their property.

Home inspection

Generally, a buyer will enlist the services of a licensed home inspector after the initial offer phase. The inspector will look for major (and sometimes minor) defects in a home that could impact the value. Inspectors usually look at the foundation, roof, plumbing, electrical systems, and HVAC.

Whether it’s bats, creaky foundations, creative duct-taping, or prominently displayed naked photos of the homeowners, most agents have encountered something unexpected in this phase.

Homeowner’s association (HOA)

Buyers looking at a home in a planned community need to know what an HOA is and why it’s important. An HOA is an entity that oversees the rules and regulations related to a planned neighborhood or multifamily building. They can also offer services to homeowners, manage shared property and common areas, ensure appearances are kept up, plan activities, and protect property values. 

Homeowners generally pay HOA fees each month. If they neglect to do so, the HOA can put a lien on the property. 

Homeowners insurance

Homeowners are required by their lenders to obtain homeowners insurance, which protects both the owner and mortgage provider against calamities, natural disasters, and accidents occurring on the property. Insurance is generally folded into monthly mortgage payments. Be aware that certain areas may have special requirements, like properties in flood zones needing flood insurance.

I

IDX website

A real estate agent’s website is one of the most important marketing and lead generation tools in their arsenal, especially when they have IDX functionality. IDX, or internet data exchange, allows your website to connect to the MLS and keep up-to-date real estate listings right on your site. We have done extensive research and selected our top real estate website builders that include IDX to help agents select the best provider. Check out our roundup of the best real estate website builders.

J

Judicial foreclosure

In many states, lenders must obtain a foreclosure ruling through the courts before commencing foreclosure proceedings.

Jumbo loan

A jumbo loan is one that goes over the “conforming loan limit.” That makes it ineligible to be backed by government-sponsored programs administered by Fannie Mae, the FHA, and Freddie Mac. The limit is based on local median home values. Jumbo loans generally require stricter qualifications, higher credit scores, and higher income or cash reserves.

L

Lead generation

Agents generate leads to keep their sales funnels full and ensure a steady pipeline of prospects and leads. Lead generation activities can range from cold calling to buying leads and everything in between.

Lease option

As the market cools and rates rise, this could be an attractive option for buyers who have found their dream home but are hoping rates will come down in the near future. A lease option is also known as a rent-to-buy. A property is leased for a determined monthly amount and can be purchased at any time during the lease for a specified amount of money.

Lender

In real estate, a lender is any individual or institution that provides financing to purchase a property, with the expectation that the amount will be repaid with interest.

Lien

We bet you have a lot of clients who think they understand this concept but could maybe use a refresher. A lien against a property means there is some unpaid debt where the property was used as collateral. This could tangle up the closing process if not properly handled. Liens can come from unpaid mortgages, construction bills, and even HOA fees. A mortgage is also considered a lien.

Life cap

On an adjustable-rate mortgage, this is the maximum rate of interest that can be charged above or below the initial interest rate. Generally, the life cap of an adjustable-rate mortgage is 5% or 6%, although it could be higher. This means that even if interest rates rise more than that life cap, the borrower will not have to pay those rates.

Loan officer

A loan officer is a licensed official with a financial institution responsible for helping borrowers understand the mortgage process, choose a loan, apply for and receive it, and communicate with other transaction stakeholders. These are the people who should be answering all of your client’s mortgage-related questions.

Loan origination

This is the time period during which a financial institution reviews a borrower’s loan application. There is sometimes a loan origination fee, as the institution gathers information and data to assess the borrower’s risk.

Loan servicing

Servicing is everything involved in the administration and maintenance of a loan. It includes sending out statements, collecting, recording, and tracking payments, managing escrow funds, and following up on unpaid debts. This is important for clients to understand because the company that they ultimately pay might be different from the institution from which they originally took out the loan (the originator).

Loan-to-value (LTV)

This is the ratio between the loan amount and the property value. To find the LTV, divide the loan amount by the value. A higher LTV denotes greater risk to the lender.

Lock-in period

A borrower must wait a certain amount of time before being able to pay off a loan in full. If a borrower does pay off a loan during the lock-in period, fees are usually involved. Make sure your clients don’t confuse this with a rate lock.

M

Mortgage

A buyer who can’t pay cash for a home will take out a loan or mortgage from a financial institution, using the property itself as collateral. In exchange, the borrower will pay back the loan regularly over a scheduled period of time and with interest.

Remember, the mortgage guys are where you should be referring your clients with their specific mortgage questions.

Mortgage banker

A mortgage banker represents the financial institution issuing the loan and oversees each step of the process. Make sure your clients understand the difference between a mortgage banker and a mortgage broker.

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Mortgage broker

A mortgage broker has access to multiple financial institutions. This way, they can shop around for a mortgage with the best interest rates or deal for the borrower. 

Mortgage insurance, aka private mortgage insurance (PMI)

Mortgage insurance protects banks against payment default. Lenders often require it if the borrower is putting down less than 20% of the purchase price.

Multiple listing service (MLS)

Like Zillow, but for real estate professionals, the MLS is a network of local lists that create a database of properties for sale.

N

Negative amortization

Negative amortization can happen when a borrower doesn’t put enough in their monthly repayments to cover the interest. In this situation, the total amount owed on the loan continues to increase.

No cash-out refinance

A borrower might use a no cash-out refinance to take advantage of a lower interest rate or to shorten the term of their mortgage. The borrower isn’t taking money out based on the equity of the property as they would in a cash-out refinance. 

No-cost mortgage

In a no-cost mortgage, the lending institution pays all closing costs in exchange for the borrower paying a higher interest rate. This benefits the lender in that they can then sell the mortgage on a secondary market for more because of the higher rate. It benefits a borrower who plans on staying in a property for less than five years. They save the closing costs and aren’t saddled with a higher interest rate for 15 or 30 years.

Note rate

Also called nominal rate, this is the amount of interest set for a loan used to calculate the monthly payment on a mortgage. Clients often confuse the note rate with the annual percentage rate. However, the APR is used to compare what it would cost for a specific loan with a certain lender, adding all their particular fees in.

O

Open listing

A seller who uses an open listing doesn’t have an exclusive agreement with an agent. This means that any agent can compete to find a buyer and receive the commission. Similar to an FSBO, an open listing might save the seller some money, but we all know it comes with a lot of headaches. 

Without a real estate professional, the seller doesn’t have someone who can provide advice and help move the transaction along. Agents might also be less motivated to market the property since they are not guaranteed a commission.

Original principal balance

The original principal balance is the total amount owed on a loan before any repayment begins. This is the number clients will see before paying their first monthly payment, though it generally does not have the escrow balance applied. 

Origination fee

A borrower will pay an origination fee to the lending institution to cover the cost of processing a mortgage loan. Clients might be surprised to learn that an origination fee is typically between 0.5% and 1.5% of the total loan amount. This means an origination fee on a $250,000 loan could be as high as $3,750.

Owner financing

If a buyer secures a mortgage directly from the seller, it’s considered owner (or seller) financing. The borrower generally avoids the fees, requirements, and rates associated with conventional loans and works out a legal and binding contract with the seller. 

There are also several advantages to the seller. They can typically set their own loan terms and sell the property as-is. Also, it all usually happens much more quickly than waiting on slow-moving financial institutions. 

Of course, there is risk involved, but sellers can often retain the deed until the debt is paid off. For buyers who struggle with good credit or putting together a 20% down payment, seller financing can open a lot of doors.

P

Pay-at-closing leads

Maybe you want leads, but you don’t have the budget to splash out on buying them before closing a deal. With a pay-at-closing lead gen model, you can obtain and work leads and only pay when they close on a property. Just note that the cost is usually pretty substantial, even as much as 35% of the commission.

Pending

This definitely gets confusing for clients poking around on Zillow, Redfin, and even the MLS. What’s the difference between active, active-contingent, pending, and all the other terminology? If a sale is labeled pending, all of the contingencies on the sale have been met and it is moving toward closing. Chances are very good that this sale will close. If not, the buyer may be at risk of losing their earnest money. 

Per diem fees

The borrower pays per diem fees for every day a loan is scheduled to close but does not. To calculate the per diem, multiply the loan amount by the interest rate (as a decimal) and divide that total by 365. The fees are generally paid to the lender at closing. 

A seller could also add a per diem clause in the contract. For example, if a buyer doesn’t close on a specified date, they might be required to pay a certain amount per day to cover utilities, insurance, HOA fees, or taxes.

Principal, interest, taxes & insurance (PITI)

This figure calculates monthly housing costs by adding up principal, interest, taxes, and insurance. PITI represents the total amount owed by a borrower every month. Many recommend borrowers keep PITI to less than (or equal to) 28% of their total monthly income. This is helpful for clients to know when they are considering how much house they can afford. 

Planned unit development (PUD)

A PUD is a grouping of residential buildings. It could be made up of townhouses, condos, or single-family homes and generally includes common areas such as pools, tennis courts, playgrounds, and parking. PUDs almost always have HOAs and associated fees. 

Clients looking at PUDs must understand the covenants, rules, regulations, and costs involved. For example, a client looking for a home that could also host exercise classes for paying customers might run into trouble with a PUD’s HOA rules about running a business out of a home. And make sure they’re aware of any required dress code when holding a garage sale.

Pocket listing

A pocket listing is a property being marketed quietly, in back channels. It can benefit sellers who value privacy or want to test the waters before listing publicly. 

What should you do when a client asks for a pocket listing? Pocket listings are risky because there is a lack of transparency and visibility that limits the number of potential buyers. This also makes pocket listings controversial, to the point where the National Association of Realtors (NAR) enacted the MLS Clear Cooperation Policy. This states that agents must put a pocket listing on the MLS within one day of any kind of marketing.

Pre-approval

Again, this is all really in the purview of the mortgage experts. However, your clients need to know the difference between pre-approval and prequalification (see below). After all, having a pre-approval letter from a lender can go a long way in giving a seller confidence when looking over an offer. 

After a borrower applies for a loan, a lender will grant them pre-approval for a certain amount based on verifying all of the information gathered. However, it’s important for your clients to understand that pre-approval does not guarantee a mortgage loan.

Predictive analytics

A predictive analytics company pulls together millions (if not billions) of data points from multiple sources in order to forecast the future. In real estate, common data sources include demographics, property, event data, and behavioral trends. This forecasting can influence — and even direct — strategic decisions, but it can also help agents hyper-target their marketing and lead generation activities on the prospects most likely to buy or sell in the next year.

Prequalification

Prequalification is the very first step in the mortgage loan process. A financial institution will prequalify a borrower for an estimated amount. It’s not as thorough a process as pre-approval, so it’s important to remember that this is even less of a guarantee of a loan.

Prime interest rate

A prime interest rate is what financial institutions use as a basis to determine rates for mortgages, credit lines, and even credit cards. 

Each bank has its own prime interest rate based on the Federal Reserve’s federal funds rate. While the prime interest rate is not the best or most competitive rate, it’s the one published publicly that can be adjusted based on individual loans. This is where clients with good credit, high down payments, and low debt-to-income ratios can negotiate for better rates.

Principal

Principal is one of those words that can mean different things to different people, depending on the context. 

• In lending, principal is the total amount of money borrowed that must be paid back with interest. 
• In real estate, the principal could also refer to a party (the buyer or seller) who has authorized an agent to act on his or her behalf. 
• It could also refer to the managing broker in a brokerage or the individual who’s ultimately legally responsible for overseeing transactions.

Probate

This is the process of reviewing a deceased person’s estate and will and administering the transfer of property. Probate can take place whether or not the deceased had a will in place.

Proof of funds

Clients should be aware that proof of funds is different from pre-approval from a lending institution. Buyers with all-cash offers still need a proof of funds letter, but for the entire amount.

A proof of funds letter lays out the financial situation of the buyer, demonstrating their capacity to buy a property. It should show that the buyer has enough cash on hand to cover the down payment and closing costs. These funds must be liquid, not stocks or bonds. 

A proof of funds form can be furnished by a bank, or you can use this simple proof of funds template from realtor.com.

Purchase agreement

Once an offer is accepted and all of the parties have signed, it becomes a contract or a purchase agreement. It’s important for buyer clients to understand that if they submit an offer, it becomes a binding contract once the seller agrees and signs. 

A purchase agreement outlines the terms and conditions of a sales contract. It affirms the buyer’s intent to purchase the property and the seller’s intent to convey it to the buyer. It also outlines the general agreed-upon terms, such as the purchase price, contingencies, closing date, and earnest money details.

R

Rate lock

Imagine a client submits an offer, and then rates increase exponentially in the period between the contract being signed and the closing date. It could throw off the entire deal.

Luckily, borrowers can lock in an interest rate for a certain amount of time. This protects that rate against fluctuations in the market in the time between making an offer and the closing date. Clients should check with their mortgage specialist to see what time frames are available and the fees associated with them.

This Free Download Helps Your Clients Understand Rate Lock

Real estate agent

You know who you are! Clients might be interested to know that you have specific education requirements, are licensed by the state, and must follow certain laws. And if you’re a member of NAR, you’re bound by a very stringent code of ethics.

Real-estate owned (REO)

Properties that have been possessed by a lender after the borrower has defaulted on a loan and a short sale or auction was unsuccessful are called real estate (or bank) owned.

Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act of 1974, or RESPA, is a piece of legislation that protects consumers. It requires lenders to be transparent by providing timely disclosures of the scheduling and costs of a real estate transaction. It also prohibits kickbacks and inflated fees and places some limitations on the uses of funds in escrow. 

Before RESPA, mortgage lending felt like the Wild West. Consumers could easily find themselves at the mercy of bad actors who charged exorbitant fees, required referrals, and promised one thing but delivered something very different. 

Realtor

A realtor is a real estate agent who is a dues-paying member of the National Association of Realtors. NAR members are held to a high standard of professionalism and adhere to a strict code of ethics.

Many think this term is synonymous with agent, but it’s not! All realtors are agents, but not all agents are realtors. The word “realtor” is one of the hottest real estate keywords, so if you’re looking for a topic for your next blog article, why not explore the differences between the two?

Refinance

If a borrower takes out a new loan on the same property, it’s called a refinance. The debt owed remains the same but generally under better terms, such as a lower interest rate, smaller payments, or a shorter loan term. 

Right of first refusal (ROFR)

Giving someone the right of first refusal means that they have the opportunity to submit an offer on a property before anyone else. The seller can charge whatever price they want, and the potential buyer can offer whatever they think is fair. It doesn’t mean the offer will be accepted, but it does give the potential buyer an advantage. 

Right of ingress or egress

The right of ingress is one’s right to enter their property, and egress is to exit their property. You’re likely to hear these terms mentioned when there is an easement on a property. 

S

Sale-leaseback

This occurs when a seller and a buyer close on a property, but the seller needs more time to vacate the property. The seller can then lease back their former home from the buyer and pay rent for a specified period. If time is an issue, this can be a great negotiation point between buyers and sellers.

Second mortgage

Borrowers can take out a second mortgage on a property using the property as collateral. The first mortgage remains in effect and would be the first loan to be paid off if there is any default. Generally, second mortgages have high interest rates for less money than the first mortgage.

Secured loan

A mortgage is a type of secured loan where one uses collateral — in this case, a property — to secure funds. Loans can also be secured by cars and other high-value items. 

Short sale

If a borrower is behind on payments and in a dire financial situation, a lender might allow a short sale of the property. In such a case, they generally accept less than is actually owed on the mortgage. 

Buyers are often interested in short sales because they can mean a good deal on a property. But short sales are incredibly complicated, and the process is anything but short.

Staging 

Staging is the process of furnishing a house to maximize its appeal. Seasoned agents know that staging can really help a home shine, especially if the property is vacant. Applying a neutral, trendy look can help prospective buyers visualize themselves living in the house and can even increase the sales price. 

Bringing in new design elements and storing owners’ current furniture can be pricey. However, many staging companies assure sellers that they will recoup those costs in the sale of the home. If staging is not an option, consider tactful ways of suggesting that the owners declutter. Or just follow this list of clever staging tips!

T

Termite report/inspection/letter/bond

Imagine your clients purchase a home and, as they walk through the kitchen, their feet go through the floorboards because termites have been snacking on the wood. Termites can cause catastrophic damage. That’s why many lenders require proof that a property has been inspected for termites and termite damage. 

Banks may also require that the home be under a continuous termite bond. This shows that the home is regularly inspected and treated for termites by a professional pest control company. If termites are found, there are plenty of options for remediation.

Title

A title is one’s legal right to a property, to use it however one wants, and to transfer it how and when, and to whomever one wants. It is different from a deed, which legally shows who is the property owner.

Title insurance

Suppose you’re a buyer who purchases a property after conducting a title search, believing the title to be clean. Two weeks later, a fourth cousin, twice removed, of a little old lady who owned the house 74 years ago shows up on the porch saying you’re living in his inheritance. Title insurance has got you covered — it protects a property owner and a lender against claims on a property title.

Title search

When purchasing a property, most buyers will hire a lawyer or title company to comb through public records to follow the transfer of the title across the decades. This ensures the title is clean and free of liens or encumbrances. Individuals can conduct their own searches, but that’s not usually recommended. Generally, title insurance companies accept 30 years of record, which is good news for owners of historic homes. 

Transfer of ownership

This is a fancy way of explaining the conveyance of the deed and title from the seller to the buyer at closing.

Transfer tax

A transfer tax is essentially a fee charged by the state, county, or municipality to handle transferring the title. Clients will expect you to know the rates and if there are any applicable exceptions, as will the writers of your state’s real estate licensing exam. 

Almost everywhere, the seller pays the transfer tax. The fee is based on the value of the home and can be calculated in increments or as a percentage. For example, in South Carolina, the combined state and local fee is $1.85 per every $500 increment of the total sale price.

U

Under contract

If a buyer and seller have agreed on a price and terms and signed a contract, then the property is under contract. However, all contingencies have not yet been met, and the closing has not taken place. Once the contingencies are met, the property is considered pending, and the sale will most likely go through.

Again, this is a time of great uncertainty, and while an agent can control a lot, you can’t control everything. Stay diligent, stay vigilant, stay calm. And make sure you take your phone off silent.

Upside-down mortgage

Also known as an underwater mortgage, this occurs when a homeowner’s outstanding loan balance is greater than the current value of their home.

USDA loan

USDA loans are backed by the Department of Agriculture and tend to have lower mortgage insurance requirements than other government-backed loans. They also don’t require a down payment. The catch is that the property must be in suburban or rural areas to qualify.

Free Download: Loan Questions That Could Save Your Clients Money

V

VA mortgage

A VA mortgage is managed by the Veteran Benefits Administration and offers a guarantee for some or all of a mortgage issued by a private financial lender. This guarantee allows servicemen and women, veterans, and surviving spouses access to better loan terms. Those who qualify can learn more and apply for a VA mortgage loan here.

Variance

Think of a variance as a friendly exception granted by the local authorities. It’s a special permission to use or modify a property in a way that doesn’t align with current zoning laws, allowing a homeowner to make unique changes to a property.

Z 

Zero lot line

A zero-lot-line home is one that is built right up to the edge of its property line. 

Zoning ordinance

This is a local law that outlines how a property should be used in a specific area. There are zones designated for residential communities, commercial properties, and industrial purposes — you get it!

Bringing It All Together

You made it through all 141 real estate terms! Ensuring that you know and can explain these definitions will go a long way in helping your clients and becoming a successful real estate agent. No matter where you are in your real estate career, we hope this list of crucial real estate terms and definitions was helpful, a good refresher, and maybe even enlightening. How about that Garn-St. Germain Depository Institutions Act? Great anecdote for cocktail parties!

Did we miss any of your favorite terms? Have any definitions to add? Be sure to leave a comment below!

The post 141 Real Estate Terms and Definitions to Know in 2025 appeared first on The Close.