Selling your home comes with a lot of jargon. To help you maximize your net proceeds and negotiate with confidence, we’ve broken down the essential real estate terminology from our latest video.

Pricing Your Home Right

Before you hit the market, you need to understand how value is determined:

• Listing Price: Your starting marketing strategy.
• Market Value: What buyers are actually willing to pay based on current demand.
• Comparable Sales (Comps): Recently sold nearby homes used to justify your price.
• Price Adjustment: A strategic change to your price based on market feedback.

Offers & Negotiations

When the offers roll in, look for these key terms:

• Irrevocable: The time limit you have to accept or counter an offer.
• Counteroffer: A response that changes terms; note that this voids the previous offer.
• Escape Clause: This allows you to keep marketing your home while under a conditional offer, giving you leverage if a better buyer comes along.

The Legal & Financial Essentials

Understanding these terms ensures there are no surprises on closing day:

• Firm Sale: When all Conditions (like financing or inspection) are removed, and the deal is legally binding.
• Listing Commission: The total fee paid to the brokerages. This is usually split between your agent and the buyer’s agent.
• Adjustments: The final cleanup of property taxes and utilities between you and the buyer.
• Closing Costs: Your total expenses, including legal fees, commissions, and mortgage discharge fees.

Reading the Market

• Seller’s Market: High demand, low inventory (advantage: you).
• Buyer’s Market: High inventory, low demand (advantage: buyers).
• Absorption Rate: A metric showing how fast homes are selling—crucial for timing your sale.



Understanding the 2026 Market

Whether it is a Seller’s, Buyer’s, or Balanced Market, keep an eye on the Absorption Rate. This is the speed at which homes sell compared to inventory, it's the clearest indicator of whether prices will rise or soften.