The ABC's of Real Estate Terms

Dusty Rhodes • December 2, 2019

Need a crash course on real estate terms? This glossary from Zillow will get you started.


DTI, PMI, LTV … TBH, it can be hard to keep all this stuff straight. This lexicon of real estate terms and acronyms will help you speak the language like a pro.


Appraisal management company (AMC): An institution operated independently of a lender that, once notified by a lender, orders a home appraisal.


Appraisal: An informed, impartial and well-documented opinion of the value of a home, prepared by a licensed and certified appraiser and based on data about comparable homes in the area, as well as the appraiser’s own walkthrough.


Approved for short sale: A term that indicates that a homeowner’s bank has approved a reduced listing price on a home, and the home is ready for resale.


American Society of Home Inspectors (ASHI): A not-for-profit professional association that sets and promotes standards for property inspections and provides educational opportunities to its members. (i.e., Look for this accreditation or something similar when shopping for a home inspector.)


Attorney state: A state in which a real estate attorney is responsible for closing.


Back-end ratio: One of two debt-to-income ratios that a lender analyzes to determine a borrower’s eligibility for a home loan. The ratio compares the borrower’s monthly debt payments (proposed housing expenses, plus student loan, car payment, credit card debt, maintenance or child support and installment loans) to gross income.


Buyers market: Market conditions that exist when homes for sale outnumber buyers. Homes sit on the market a long time, and prices drop.


Cancellation of escrow: A situation in which a buyer backs out of a home purchase.


Capacity: The amount of money a home buyer can afford to borrow.


Cash-value policy: A homeowners insurance policy that pays the replacement cost of a home, minus depreciation, should damage occur.


Closing: A one- to two-hour meeting during which ownership of a home is transferred from seller to buyer. A closing is usually attended by the buyer, the seller, both real estate agents and the lender.


Closing costs: Fees associated with the purchase of a home that are due at the end of the sales transaction. Fees may include the appraisal, the home inspection, a title search, a pest inspection and more. Buyers should budget for an amount that is 1% to 3% of the home’s purchase price.


Closing disclosure (CD): A five-page document sent to the buyer three days before closing. This document spells out all the terms of the loan: the amount, the interest rate, the monthly payment, mortgage insurance, the monthly escrow amount and all closing costs.


Closing escrow: The final and official transfer of property from seller to buyer and delivery of appropriate paperwork to each party. Closing of escrow is the responsibility of the escrow agent.


Comparative market analysis (CMA): An in-depth analysis, prepared by a real estate agent, that determines the estimated value of a home based on recently sold homes of similar condition, size, features and age that are located in the same area.


Compliance agreement: A document signed by the buyer at closing, in which they agree to cooperate if the lender needs to fix any mistakes in the loan documents.


Comps: Or comparable sales, are homes in a given area that have sold within the past six months that a real estate agent uses to determine a home’s value.


Condo insurance: Homeowners insurance that covers personal property and the interior of a condo unit should damage occur.


Contingencies: Conditions written into a home purchase contract that protect the buyer should issues arise with financing, the home inspection, etc.


Conventional 97: A home loan that requires a down payment equivalent to 3% of the home’s purchase price. Private mortgage insurance, which is required, can be canceled when the owner reaches 80% equity.


Conventional loan: A home loan not guaranteed by a government agency, such as the FHA or the VA.


Days on market (DOM): The number of days a property listing is considered active.


Depository institutions: Banks, savings and loans, and credit unions. These institutions underwrite as well as set home loan pricing in-house.


Down payment: A certain portion of the home’s purchase price that a buyer must pay. A minimum requirement is often dictated by the loan type.


Debt-to-income ratio (DTI): A ratio that compares a home buyer’s expenses to gross income.


Earnest money: A security deposit made by the buyer to assure the seller of his or her intent to purchase.


Equity: A percentage of the home’s value owned by the homeowner.


Escrow account: An account required by a lender and funded by a buyer’s mortgage payment to pay the buyer’s homeowners insurance and property taxes.


Escrow agent: A neutral third-party officer who holds all paperwork and funding in trust until all parties in the transaction fulfill their obligations as part of the transfer of property ownership.


Escrow state: A state in which an escrow agent is responsible for closing.


Fannie Mae: A government-sponsored enterprise chartered in 1938 to help ensure a reliable and affordable supply of mortgage funds throughout the country.


Federal Reserve: The central bank of the United States, established in 1913 to provide the nation with a safer, more flexible and more stable monetary and financial system.


Federal Housing Administration (FHA): A government agency created by the National Housing Act of 1934 that insures loans made by private lenders.


FHA 203(k): A rehabilitation loan backed by the federal government that permits home buyers to finance money into a mortgage to repair, improve or upgrade a home.


Foreclosure: A property repossessed by a bank when the owner fails to make mortgage payments.


Freddie Mac: A government agency chartered by Congress in 1970 to provide a constant source of mortgage funding for the nation’s housing markets.


Funding fee: A fee that protects the lender from loss and also funds the loan program itself. Examples include the VA funding fee and the FHA funding fee.


Gentrification: The process of rehabilitation and renewal that occurs in an urban area as the demographic changes. Rents and property values increase, culture changes and lower-income residents are often displaced.


Guaranteed replacement coverage: Homeowners insurance that covers what it would cost to replace property based on today’s prices, not original purchase price, should damage occur.


Homeowners association (HOA): The governing body of a housing development, condo or townhome complex that sets rules and regulations and charges dues and special assessments used to maintain common areas and cover unexpected expenses respectively.


Home equity line of credit (HELOC): A revolving line of credit with an adjustable interest rate. Like a credit card, this line of credit has a limit. There is a specified time during which money can be drawn. Payment in full is due at the end of the draw period.


Home equity loan: A lump-sum loan that allows the homeowner to use the equity in their home as collateral. The loan places a lien against the property and reduces home equity.


Home inspection: A nondestructive visual look at the systems in a building. Inspection occurs when the home is under contract or in escrow.


Homeowners insurance: A policy that protects the structure of the home, its contents, injury to others and living expenses should damage occur.


Housing ratio: One of two debt-to-income ratios that a lender analyzes to determine a borrower’s eligibility for a home loan. The ratio compares total housing cost (principal, homeowners insurance, taxes and private mortgage insurance) to gross income.


In escrow: A period of time (30 days or longer) after a buyer has made an offer on a home and a seller has accepted. During this time, the home is inspected and appraised, and the title searched for liens, etc.


Jumbo loan: A loan amount that exceeds the Fannie Mae/Freddie Mac limit, which is generally $425,100 in most parts of the U.S.


Listing price: The price of a home, as set by the seller.


Loan estimate: A three-page document sent to an applicant three days after they apply for a home loan. The document includes loan terms, monthly payment and closing costs.


Loan-to-value ratio (LTV): The amount of the loan divided by the price of the house. Lenders reward lower LTV ratios.


Market value coverage: Homeowners insurance that covers the amount the home would go for on the market, not the cost to repair, should damage occur.


Mechanic’s lien: A hold against a property, filed in the county recorder’s office by someone who’s done work on a home and not been paid. If the homeowner refuses to pay, the lien allows a foreclosure action.


Mortgage broker: A licensed professional who works on behalf of the buyer to secure financing through a bank or other lending institution.


Mortgage companies: Lenders who underwrite loans in-house and fund loans from a line of credit before selling them off to a loan buyer.


Mortgage interest deduction: Mortgage interest paid in a year subtracted from annual gross salary.


Mortgage interest rate: The price of borrowing money. The base rate is set by the Federal Reserve and then customized per borrower, based on credit score, down payment, property type and points the buyer pays to lower the rate.


Multiple listing service (MLS): A database where real estate agents list properties for sale.


Origination fee: A fee, charged by a broker or lender, to initiate and complete the home loan application process.


Piggyback loan: A combination of loans bundled to avoid private mortgage Insurance. One loan covers 80% of the home’s value, another loan covers 10% to 15% of the home’s value, and the buyer contributes the remainder.


Principal, interest, property taxes and homeowners insurance (PITI): The components of a monthly mortgage payment.


Private mortgage insurance (PMI): A fee charged to borrowers who make a down payment that is less than 20% of the home’s value. The fee, 0.3% to 1.5% of the yearly loan amount, can be canceled in certain circumstances when the borrower reaches 20% equity.


Points: Prepaid interest owed at closing, with one point representing 1% of the loan. Paying points, which are tax deductible, will lower the monthly mortgage payment.


Pre-approval: A thorough assessment of a borrower’s income, assets and other data to determine a loan amount they would qualify for. A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home.


Pre-qualification: A basic assessment of income, assets and credit score to determine what, if any, loan programs a borrower might qualify for. A real estate agent will request a pre-approval or pre-qualification letter before showing a buyer a home.


Property tax exemption: A reduction in taxes based on specific criteria, such as installation of a renewable energy system or rehabilitation of a historic home.


Round table closing: All parties (the buyer, the seller, the real estate agents and maybe the lender) meet at a specified time to sign paperwork, pay fees and finalize the transfer of homeownership.


Sellers market: Market conditions that exist when buyers outnumber homes for sale. Bidding wars are common.


Short sale: The sale of a home by an owner who owes more on the home than it’s worth (i.e., “underwater” or “upside down”). The owner’s bank must approve a lower listing price before the home can be sold.


Special assessment: A fee charged by a condo complex HOA when cash on reserve is not enough to cover unexpected expenses.


Tax lien: The government’s legal claim against property when the homeowner neglects or fails to pay a tax debt.


Third-party review required: Verbiage included in a home listing to indicate that the lender has not yet approved the home for short sale. The seller must submit the buyer’s offer to the lender for approval.


Title insurance: Insurance that protects the buyer and lender should an individual or entity step forward with a claim that was attached to the property before the seller transferred legal ownership of the property or “title” to the buyer.


Transfer stamps: The form in which transfer taxes are paid by the home buyer. Stamps can also serve as proof of transfer tax payment.


Transfer taxes: Fees imposed by the state, county or municipality on transfer of title.


Under contract: A period of time (30 days or longer) after a buyer has made an offer on a home and a seller has accepted. During this time, the home is inspected and appraised, and the title is searched for liens, etc.


Underwater or upside down: A situation in which a homeowner owes more for a property than it’s worth.


Underwriting: A process a lender follows to assess a home loan applicant’s income, assets and credit, and the risk involved in offering the applicant a mortgage.


VA home loan: A home loan partially guaranteed by the United States Department of Veteran Affairs and offered by private lenders, such as banks and mortgage companies.


VantageScore: A credit scoring model lenders use to make lending decisions. A borrower’s score is based on bill-paying habits, debt balances, age, variety of credit accounts and number of inquiries on credit reports.


Walkthrough: A buyer’s final inspection of a home before closing.


Water certificate: A document that certifies that a water account has been paid in full. The seller must produce this certificate at closing.


Source: Zillow


 

Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!


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Should You Pay for Your Buyer’s Closing Costs? What Sellers Need To Know.

By Dusty Rhodes • June 15, 2026
A few years ago, sellers could get away with saying “no” to just about everything. No repairs. No concessions. No negotiation. If buyers wanted the house, they pretty much had to take it on the seller’s terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again. That’s why one of the most important things sellers need to understand right now is this: The goal isn’t to “win” every negotiation. Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer’s closing costs. Let’s break that down, so you know what to expect if it comes up in your sale. What Are Buyer Closing Costs? Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples : Loan origination fees Appraisal and inspection costs Title and attorney fees Survey fees and more Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket. And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself. That’s why more people are asking sellers for help. And More Sellers Are Saying “Yes” According to the latest data from Zillow , 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 ( see chart below ):

How to Stage Your Outdoor Space to Sell Your Home Faster

By Dusty Rhodes • June 8, 2026
When preparing to sell your home , the outside matters just as much as what’s inside. Learning how to stage your outdoor space to sell can help create a memorable first impression, boost curb appeal, and make buyers feel emotionally connected before they even walk through the front door. From refreshing landscaping to creating cozy gathering areas, thoughtful outdoor staging can help your home stand out in a competitive market. In this Redfin guide, we’ll share expert-backed tips for transforming your yard, patio, porch, or garden into a space buyers can easily picture themselves enjoying. Whether you’re preparing a bungalow in Boise, ID , or listing a modern home in Savannah, GA , these outdoor staging ideas can help sellers create inviting spaces that feel polished, functional, and move-in ready. Why outdoor staging matters when selling a home Outdoor staging helps buyers form an emotional connection with a home before they even step inside. A clean, inviting exterior can make a property feel more cared for, while thoughtfully designed outdoor spaces help buyers imagine themselves relaxing, entertaining, or spending time outside. In competitive markets especially, those details can help a listing stand out from similar homes nearby. “Staging allows buyers to see the potential of the space and aids realtors in securing high-investment buyers,” shares Julia, CEO of JP Urban Moving . “Staging is an aspect of the moving industry that customers generally don’t consider, but it’s vital and on the rise.” Outdoor staging can also help: Create a stronger first impression during showings. Highlight usable outdoor living areas like patios, porches, and backyards. Make the home feel move-in ready . Showcase the lifestyle the property offers , not just the structure itself. Help buyers remember the home after touring multiple listings. Focus on curb appeal first Curb appeal plays a major role in shaping a buyer’s first impression of a home. Before buyers notice updated interiors or spacious layouts, they’re already evaluating the condition of the yard, landscaping, and exterior maintenance. “Ensure your home is move-in ready by maximizing its curb appeal and value through thoughtful landscape design,” suggests Fel Quinn, Marketing Director at TerraVita Landscape & Gardening Inc. “Carefully consider how the trees, shrubs, and perennials add interest while keeping the space low-maintenance. Sometimes less is more – by prioritizing strategic planting and the overall health of your landscape, you can create a welcoming space that is both well-kept and inviting.” To improve curb appeal before listing your home: Trim overgrown trees and shrubs. Refresh mulch in flower beds and garden areas. Mow and edge the lawn regularly. Keep walkways, driveways, and entryways clean and clutter-free. Choose landscaping that looks attractive while remaining low-maintenance. Create outdoor spaces buyers can picture themselves using When staging an outdoor space , the goal is to help buyers imagine how they would actually live there. A cozy patio setup, welcoming front porch, or peaceful backyard can make the home feel like a retreat rather than just another property on the market. Buyers are often drawn to spaces that feel functional, relaxing, and easy to enjoy from day one. “Think about it: It’s Friday afternoon, you just got off a busy work week, you’re dreaming of how long until you escape to your home, that peaceful haven from the chaos,” says Justin Wilson of American Irrigation Repair . “When you’re selling your house, you’re not just selling just the structure, you’re selling a vision of how a buyer feels when they step on the property.” To create outdoor spaces buyers can connect with: Arrange simple seating areas on patios or decks. Add outdoor pillows or neutral decor for warmth. Incorporate planters or flowers for natural color. Keep pathways and gathering spaces open and uncluttered. Highlight features like fire pits, gardens, or dining areas. Use lighting to make the space feel inviting during evening showings. Less clutter, more function: Keep outdoor staging simple When staging outdoor areas, simplicity often has the biggest impact. Buyers want to see spaces that feel open, functional, and easy to maintain, rather than overcrowded with furniture, decorations, or excessive landscaping features. A clean and thoughtfully arranged yard allows buyers to focus on the home itself while still appreciating the outdoor lifestyle it offers. “When staging an outdoor space to sell, focus on making it feel clean, welcoming, and easy for buyers to picture themselves comfortably living in and using the space,” says Beth Wren of Copper Creek Landscaping . “The goal is to create an outdoor space that feels polished, functional, low-maintenance, and like a natural extension of the home.” To keep outdoor staging simple yet effective: Remove broken furniture , excess décor, and unused yard items. Define seating areas without overcrowding the space. Add fresh mulch and trim overgrown plants. Highlight one or two focal points , like a bird bath or statement planting. Don’t forget the emotional connection buyers feel outdoors Outdoor spaces often leave the strongest emotional impression during a home tour. Long after buyers forget square footage or listing details, they tend to remember how a home felt – especially in areas where they can imagine relaxing, gathering, or unwinding. A thoughtfully staged exterior helps turn a property into something more personal and memorable. At its core, outdoor staging is about selling a feeling as much as a space. Buyers respond to environments that feel peaceful, cared for, and inviting, where they can easily picture everyday moments unfolding. Key emotional drivers in outdoor staging include: A sense of calm and retreat from daily stress. The feeling of a “personal oasis” or private escape. Warmth and comfort created through greenery, lighting, and layout. Subtle signals that the home has been well cared for over time. Spaces that feel ready for connection , whether with family, friends, or nature. How to stage your outdoor space to sell successfully Staging your outdoor space is about more than improving curb appeal – it’s about helping buyers imagine the lifestyle your home offers. Small updates like fresh landscaping, defined seating areas, lighting, and thoughtful decor can make your property feel more welcoming, memorable, and move-in ready. By taking the time to stage your outdoor space to sell, you can create a strong first impression that helps your home stand out to potential buyers.

What a Builder Warranty Covers on New Constructions (and What You’re on the Hook for Yourself)

By Dusty Rhodes • June 1, 2026
Buying a newly constructed home can come with a number of perks, one of them being a builder warranty. Now, the assumption is that the warranty means the builder will assume financial responsibility for anything that breaks . The truth is, while a builder warranty is issued to most new constructions, it covers a very specific list of features in and on the house. Understanding what is covered by this warranty and if you'll need a home warranty in addition to your insurance is an important step for first-time buyers of new-construction homes. Home warranty vs. builder warranty There are importants differences between a builder warranty and a home warranty . The primary difference is that a builder warranty covers new construction or a remodel by a builder. Most newly built homes come with a builder warranty. A home warranty applies to existing properties and covers appliances (like the oven, range, and garbage disposal) and household systems (like electrical, plumbing, heating, and cooling). And while a builder warranty is provided by the builder, a home warranty is purchased by the buyers. What’s covered and what’s not? The lifespan of a builder warranty depends on the specific features of the house. However, the typical builder warranty lasts six months to two years, with some lasting up to 10 years for "major structural defects" like an unsafe roof. While there are differences in warranties from builder to builder, in general, they should cover all of a home’s materials and workmanship. In most cases, that includes: Concrete foundations and floors Dry basement Clapboard and shingles Landscaping Carpentry Thermal and moisture cover Waterproofing Insulation Roofing and siding Doors and windows Glass Garage doors Paint Plumbing Electrical Heating and cooling Septic system Most builder warranties don't cover: Household appliances Defects resulting from work conducted by the homeowner or anyone else after the builder's work is completed Shrinkage and expansion of the house Normal fading of paint Shrinkage of joints/minor cracking Weather-related issues Dampness/condensation caused by failure of the homeowner to maintain adequate ventilation Insect damage Builder warranty essentials While a builder warranty is an “absolute must” if you're buying a new home, it shouldn't make you feel too comfortable, says Robert Pellegrini Jr. , Esq, president of PK Boston, a real estate law firm in Massachusetts . “A builder warranty can give a false sense of security to homebuyers, so you need to be careful.” You might assume something is covered that actually isn't. It’s up to you to ask your builder for the details of the warranty and, ideally, have an attorney look over the contract. “It's a significant negotiation—the builder wants to be responsible for essentially nothing, and it's in the buyer's best interest to have the builder on the hook for as much as possible.” Before you sign the contract, make sure you know not only what is and isn't covered, but also the length of the coverage. Pellegrini says you should also make sure you understand how to notify the builder should something go wrong during the warranty period. If you don't notify the builder in accordance with the contract terms, it could void the warranty. Some of the biggest disagreements arise when the cause is the issue, and the question is: "Was the damage due to neglect during building or to misuse by the homeowner?" For example, if a homeowner decides to clean his paintbrushes in his kitchen sink after he moved in, but doesn't realize that doing so will render the septic system inoperable, he will be liable for replacing it at his own expense. It’s not always cut and dried, though. “If homeowners act in good faith and work well with the builder, the builder is more apt to help you, even if it's not a warrantied item,” Pellegrini says. If the builder goes out of business, however, all bets are off. “In most cases, the buyer is out of luck,” he adds.  Bottom line? If you buy a new construction, make sure you get a builder warranty. But don't bank on that warranty covering everything that might go wrong with your home. While you should try to get as much coverage from your builder as possible, repairs and maintenance fees are all part of the homeowning game.