Essential real estate terms every Indianapolis home buyer and seller should know
A professional assessment of a property's market value conducted by a licensed appraiser, typically required by lenders before approving a mortgage.
Fees and expenses paid at the closing of a real estate transaction, including title insurance, attorney fees, recording fees, and lender charges. Typically 2-5% of purchase price.
A condition in a purchase contract that must be met for the sale to proceed. Common contingencies include financing, inspection, and appraisal.
The number of days a property has been listed for sale. Lower DOM often indicates higher demand or competitive pricing.
A deposit made by the buyer to demonstrate serious intent to purchase. Typically 1-3% of the purchase price, held in escrow until closing.
A neutral third party that holds funds and documents during a real estate transaction until all conditions are met and the sale is complete.
The difference between a property's current market value and the outstanding mortgage balance. Equity builds as the mortgage is paid down and/or property value increases.
A thorough examination of a property's condition by a certified inspector, covering structure, systems, and major components. Typically conducted during the contingency period.
A database used by real estate professionals to share information about properties for sale. Provides comprehensive market data and exposure for listings.
A lender's written commitment to provide financing up to a specific amount, based on verified income, credit, and assets. Stronger than pre-qualification.
Insurance that protects buyers and lenders against loss from defects in the property title, such as liens, encumbrances, or ownership disputes.
An evaluation of similar, recently sold properties used to determine a competitive market price for a home being bought or sold.
Insurance required by lenders when a buyer puts down less than 20%. Protects the lender if the borrower defaults. Typically 0.5-1% of loan amount annually.
An organization in a subdivision or condo that makes and enforces rules, maintains common areas, and collects fees from property owners.
Final approval from the lender indicating all conditions have been met and the loan is ready to fund. Typically issued 2-3 days before closing.
When one agent represents both the buyer and seller in the same transaction. Requires written consent and full disclosure to all parties.
A mortgage with an interest rate that can change periodically based on market conditions. Initial rate is typically lower than fixed-rate mortgages.
A lender's comparison of your monthly debt payments to your gross monthly income. Most lenders prefer DTI under 43% for mortgage approval.