We all know our ABCs, but do you know the ABCs of buying and selling a home in Northern Virginia?

As we head into the new year let’s review some of the common terminologies that are used in a real estate transaction. We’ll go from A to Z so you’re as knowledgeable as can be when it comes time to buy or sell.

A Through D

As I go through the ABCs, I just want to point out that because I’m in Northern Virginia, some of the terminologies may vary depending on the location where you're at. First, A is for addendum. What does that mean? It's the additional documents that go along with the main body of the contract. Additionally, A is for appraisal gap. This is a guarantee between what the appraised value came in and what the actual contracted sales price could be. If the appraisal comes in lower than the contracted sales price, you might be offering to put more money out of your pocket to get closer to or at that contract and sales price.

B is for buyer’s marker. A buyer’s market is definitely not what we're in right now.

C is for contingencies, the things that are put on a contract. Contingencies are either hurdles you have to get through or a timeline for something that’s in the way from the contract to close.

D is for dual agency. This is one of the things that you may or may not be able to do, depending on your area. Dual agency is when I represent the seller and I represent the buyer. I am what you consider a dual agent.

E Through H

E is for escrow or earnest money deposit. In Northern Virginia, we call it an earnest money deposit, or an EMD. That’s the money that the buyer is willing to put up in advance of purchasing the home. In case they default, that earnest money could then potentially go to the seller.  

F stands for FHA loan. With an FHA loan, you typically put about 3.5% down on the house.

G is for Ginger. That’s me! Just call me with whatever you need.

H is for home inspection or HOA. The home inspection is one of the contingencies where you can bring in an expert to check over the house. They’ll tell you what may or may not need to be fixed, what the honey-do list could be, or what can be a deal-breaker for you.

The HOA depends on the community. They may have some rules and regulations that the homeowner’s association will require.

I Through N

I is for insurance. If you have a loan, it's going to be something the lender will require you to put on the house in case anything happens.

J is for Julie. I'm reading a script, and let's just say that my marketing person's name is Julie. She’s amazing, so thank you, Julie, for all that you do behind the scenes.

K is for key. This is how you get in and out of the house.

L is for loan. If you don't have $500,000 cash laying around to pay cash for a deal, you're going to need a loan. Do you know who else you're going to need? A lender. On that same note,

M is for mortgage. A mortgage is what you have on a house. Once you've borrowed the money, you're paying the mortgage.

N is for net profit. This is the amount of money that the seller is going to walk away with after everything has been paid out. Because this market is a seller's market, the net profit in some cases could be pretty good.

O Through R

O is for offer, of course. It's what you're actually willing to give the seller in both contingencies and money. Your offer is whatever you want to give them; I've even heard people offer concert tickets and tacos. Either way, the offer is the document that you're giving from the buyer to the seller to purchase their home.

P is for preapproval or prequalification. This is the document that you get from the lender saying how much money you can afford to borrow and buy. In addition, P is for post-occupancy. This allows the seller to stay in the house after you've closed for anywhere up to 60 days.

Q is for qualified. In this market, you have to be a qualified buyer to buy a home.

R is for realtor extraordinaire.

S Through V

S is for seller’s market. It's what we're obviously in right now. A seller’s market is when the market leans towards the benefit of the seller and they're pretty much dictating the terms.

T is for title search. This is a really interesting thing that you probably don't even know happens behind the scenes. A title sure makes sure there are no defects against the title—meaning that the seller can sell the house free and clear of any additional debts or leans on the house.

U is for under contract. This is the thing that we always love as a buyer's agent. We always do a little celebration in this market when we get to the big “U.”

V is for Virginia, because that’s where I am. However, a more universal one is VA loan. This is a specific loan that only applies to our military and our veterans. And if you do qualify for the VA loan, thank you for your service.

W Through Z

W is for Walker, win, and wine. Walker would be me, Ginger Walker. The win happens when you win the house. And as a realtor, I have to tell you: wine helps at some points when you're making multiple offers and your client is not winning.

X is for X marks the spot.

Next, Y is for yippee or yes! This is when we finally get you under contract or get that amazing offer for our sellers. These are the words you’ll use when you walk away and see how much you sold it for with Ginger Walker and Give Back Team.

Lastly, Z is for Zed. This is from Julie who is Canadian. “Zed” is actually Canadian for “Z,” which is the end of the alphabet and the end of your home search.

We’re Here To Help

I hope this helped you learn the ABCs of real estate terms. If you have any other questions related to the terms of real estate, feel free to give us a call.