After-Repair Value (ARV)
An estimate of what a property could sell for after specified repairs and improvements. It is not the current as-is value or a guaranteed sale price.
Real Estate Glossary
Real Estate Terms Every Home Seller Should Know
A searchable, plain-English reference for cash-sale, foreclosure, probate, title, and distressed-property terms. Each definition is included on this page so sellers do not have to open dozens of thin pages.
Cash Sale & Pricing
As-Is Sale
A sale in the property’s present condition, with repairs and inspection rights governed by the agreement. As-is wording does not automatically remove disclosure duties or other legal obligations.
Cash Offer
An offer that does not depend on the buyer obtaining a mortgage under a financing contingency. Confirm available funds, contingencies and the actual buyer before relying on a closing date.
Closing Costs
Charges needed to complete a property transfer, such as settlement, recording and title-related fees. The agreement and final settlement statement identify which party pays each charge.
Comparable Sales (Comps)
Recently sold properties used to estimate value. Useful comparisons account for location, size, condition, features and the date of sale.
Contract Assignment
A transfer of contractual rights to another party when the agreement and applicable law permit it. Ask who will close, what consent is needed and whether the original buyer remains responsible.
Double Close
Two separate transactions in which a buyer acquires a property and then resells it. Each closing has its own documents, funding and costs.
Earnest Money
A deposit made under a purchase agreement. The contract sets who holds it, when it is due and what happens to it if the transaction closes or ends.
Fair Market Value (FMV)
An estimate of the price informed, willing parties would agree on without undue pressure. It is different from a tax assessment, an asking price or a specific buyer’s offer.
Holding Costs (Carrying Costs)
Expenses incurred while owning a property, including loan payments, taxes, insurance, utilities and maintenance. These costs affect the proceeds from waiting to sell.
iBuyer
A company that uses data and a standardized process to make property offers. Property eligibility, inspections, service fees and available markets vary by company.
Proof of Funds (POF)
Evidence of funds available for a purchase, such as a current bank letter. Check the amount, date and buyer identity; a document alone does not guarantee closing.
Wholesaling (Real Estate)
A transaction model often involving an investor assigning a purchase contract for a fee rather than taking title. Contract terms, required disclosures and licensing rules vary.
Foreclosure
Certificate of Sale
A document recording an auction sale in jurisdictions that use it. Its effect and any remaining steps before ownership transfers depend on local law and the type of sale.
Deed in Lieu of Foreclosure
An arrangement in which a lender accepts a property deed instead of completing foreclosure. Review any remaining debt and release terms with a qualified professional.
Deficiency Judgment
A court judgment for debt left unpaid after collateral is sold, when applicable law permits it. A foreclosure or short sale does not always erase remaining liability.
Foreclosure
The legal process used to enforce a secured debt through sale of the property. Required notices, court involvement and available protections depend on the loan and applicable law.
Judicial Foreclosure
A foreclosure pursued through a court case. The owner’s response deadlines and rights come from the case documents and applicable law, not a generic timeline.
Lis Pendens
A recorded notice that a lawsuit may affect ownership or rights in a property. Ask the closing professional or attorney how the pending case affects a proposed sale.
Non-Judicial Foreclosure
A foreclosure conducted through a power-of-sale process rather than a foreclosure lawsuit. Required notices and procedures still apply.
Notice of Default (NOD)
A notice that an obligation has not been met, commonly a loan payment. Read it promptly to identify the amount claimed, deadlines and available contact or dispute options.
Redemption Period
A period, where applicable, in which a person may recover property by paying the required amount. Availability, waivers, deadlines and payment requirements depend on the law and transaction.
Reinstatement
Bringing a delinquent loan current under the servicer’s requirements. Obtain a current written amount and deadline; eligibility and the effect on foreclosure must be confirmed.
Sheriff's Sale
A public sale conducted by a sheriff to enforce a judgment or other authorized process. Procedures differ from a Tennessee deed-of-trust sale and vary by jurisdiction.
Short Sale
A sale for less than the secured debt that requires the relevant lender’s approval. Confirm whether the lender also releases any remaining personal liability.
Trustee's Sale
A sale conducted by a trustee under a deed of trust. For Tennessee property, review the deed, notices and applicable rules with a qualified professional before relying on a deadline.
Probate & Inheritance
Executor / Personal Representative
A person appointed to administer an estate. Their authority to sign a property sale depends on the appointment, estate documents and any required court approval.
Heir Property
Property inherited by heirs, sometimes shared among several owners. Confirm ownership and each required signer before agreeing to sell.
Intestate
Dying without a valid will. State inheritance rules determine who is entitled to the estate, subject to administration and applicable claims.
Letters Testamentary
Court-issued evidence of an executor’s appointment. The document does not by itself resolve every restriction on an estate property sale.
Partition Action
A court proceeding involving co-owned property when owners seek a division or sale. The available outcome and costs depend on the facts and applicable law.
Probate
The legal process for administering a deceased person’s estate. It can involve establishing authority, handling claims and distributing assets; not every property transfer requires the same process.
Stepped-Up Basis
A common description of an inherited asset’s basis adjustment, often to value at death. The adjustment can be downward, and exceptions apply; confirm the tax basis before calculating gain.
Title & Liens
Clouded Title
A title with an unresolved claim, defect or conflicting interest. A closing professional can identify what records, releases or other steps are needed.
Escrow
An arrangement in which funds or documents are held until specified conditions are met. A mortgage escrow account for taxes and insurance is a different use of the same term.
HOA Super-Lien
A term used for an association lien with special priority under certain laws. Priority is not universal; review the property’s jurisdiction, governing documents and recorded claims.
Lien
A legal claim against property securing an obligation. A lien may require a payoff, release or another approved resolution before a sale can close.
Mechanic's Lien
A claim associated with unpaid labor or materials used to improve property. Eligibility, notices and filing deadlines vary; a disputed claim needs professional review.
Quitclaim Deed
A deed transferring whatever interest the grantor has, without warranties of title. It does not establish that the grantor owns the property or remove a mortgage.
Tax Lien
A government claim securing unpaid taxes. Verify the taxing authority, balance, priority and requirements for release or discharge before closing.
Title
The legal ownership rights in property. A deed documents a transfer, while a title review checks who owns what and identifies claims or restrictions.
Title Insurance
Insurance against certain covered title problems, subject to the policy’s terms and exclusions. An owner’s policy and a lender’s policy protect different interests.
Title Search
A review of records to identify ownership, liens and other matters affecting a property. It helps the closing professional determine what must be resolved for transfer.
Warranty Deed
A deed containing promises about title. The scope of those warranties depends on the deed and applicable law; it is not a guarantee of the property’s physical condition.
Property Condition
Absentee Owner
An owner who does not occupy the property. The owner may be a landlord, an heir or someone who has moved away.
Cash for Keys
A voluntary agreement providing payment in exchange for an occupant leaving on agreed terms. It does not replace required legal procedures or authorize harassment.
Code Violation
A finding that a property does not meet an applicable local requirement. Confirm the case status, repair requirements, deadlines and any fines with the enforcing authority.
Distressed Property
Property affected by significant physical problems, financial pressure or both. The label alone does not establish its value or the owner’s selling options.
Equity
The property’s value minus debts secured against it. Estimated equity is not the same as sale proceeds after closing costs and other deductions.
Motivated Seller
An owner with a reason to prioritize selling, such as a move or an unwanted property. It does not mean the owner must accept a low offer or waive protections.
Seller Disclosure
Information a seller is required to provide about a property under applicable rules. Requirements, exemptions and the effect of as-is terms should be checked for the specific sale.
Underwater Mortgage
A situation in which the mortgage balance exceeds the property’s value. Selling may require additional funds or a lender-approved arrangement.
Vacant Property
Property that is not occupied. Check insurance conditions, security, utilities and maintenance while it remains empty.
Sources and limits
These short definitions explain common terms, not the legal or tax result of a particular sale. Ask your closing professional, attorney or tax adviser about your documents and deadlines.
Primary references: CFPB mortgage terms, CFPB foreclosure overview, CFPB short-sale guidance, IRS inherited-property guidance and Tennessee Courts probate guide.