Real Estate Terms Every Buyer and Seller Should Know
Whether you're buying your first home, selling your fifth, or just exploring the market, real estate can feel like learning a new language. From “escrow” to “contingency,” the terminology can be overwhelming. But don’t worry—this guide breaks down the most essential real estate terms every buyer and seller should know, so you can navigate your transaction with confidence.
And if you're in the Cincinnati area, Mike McEntush is the expert you want by your side. With over a decade of experience, a passion for educating clients, and a deep understanding of the local market, Mike is your go-to REALTOR® for a smooth and successful real estate journey.
1. Listing Agreement
A listing agreement is a contract between a homeowner and a real estate agent that gives the agent the right to sell the home. It outlines the terms of the sale, including the commission, listing price, and duration of the agreement.
Why it matters: Sellers should understand what they’re agreeing to before signing. Mike McEntush ensures his clients are fully informed before moving forward.
2. MLS (Multiple Listing Service)
The MLS is a database where real estate agents list properties for sale. It allows agents to share information and helps buyers find homes that meet their criteria.
Pro tip: Mike uses the MLS to give his clients access to the most up-to-date listings in Cincinnati and surrounding areas.
3. Pre-Approval vs. Pre-Qualification
Pre-qualification is an estimate of how much you might be able to borrow.
Pre-approval is a more formal process where a lender verifies your financial information.
Why it matters: A pre-approval letter strengthens your offer. Mike can connect you with trusted lenders to get started.
4. Contingency
A contingency is a condition that must be met for a real estate contract to become binding. Common contingencies include:
Home inspection
Appraisal
Financing
Mike’s tip: Always understand your contingencies. They protect your interests but can also affect your offer’s competitiveness.
5. Earnest Money
This is a deposit made by the buyer to show they’re serious about purchasing the home. It’s typically 1–3% of the purchase price and is held in escrow.
Good to know: If the deal falls through due to a contingency, the buyer usually gets this money back.
6. Escrow
Escrow is a neutral third party that holds funds and documents until all conditions of the sale are met.
Why it matters: Escrow ensures both parties are protected. Mike works closely with escrow officers to keep transactions on track.
7. Appraisal
An appraisal is an unbiased estimate of a home’s value, usually required by lenders to ensure the loan amount isn’t more than the home is worth.
Mike’s insight: If an appraisal comes in low, he’ll help you renegotiate or explore your options.
8. Closing Costs
These are fees paid at the end of a real estate transaction. They include:
Title insurance
Loan origination fees
Attorney fees
Taxes
Tip: Buyers and sellers both have closing costs. Mike provides a detailed estimate early in the process so there are no surprises.
9. Title Insurance
Title insurance protects against legal claims to the property. It ensures the seller has the right to transfer ownership.
Why it matters: It’s a one-time fee that can save you from costly legal issues down the road.
10. Home Inspection
A home inspection is a thorough review of the property’s condition, including the roof, plumbing, electrical, and more.
Mike’s advice: Never skip the inspection. He’ll recommend trusted inspectors and help you interpret the results.
11. FSBO (For Sale By Owner)
This means the homeowner is selling without a real estate agent. While it might seem like a way to save money, it often leads to complications.
Mike’s take: He’s helped many clients navigate FSBO deals and avoid costly mistakes.
12. Comparative Market Analysis (CMA)
A CMA is a report that compares your home to similar properties in the area to determine a fair market value.
Why it matters: Mike provides a free CMA to help sellers price their homes competitively and attract buyers.
13. Pending vs. Under Contract
Under contract means an offer has been accepted but contingencies remain.
Pending means all contingencies have been met and the deal is close to closing.
Mike’s insight: He tracks these statuses closely to help buyers find opportunities and sellers stay informed.
14. HOA (Homeowners Association)
An HOA manages common areas and enforces rules in certain communities. Fees vary and can affect your budget.
Tip: Mike helps buyers understand HOA rules and fees before making an offer.
15. Dual Agency
This occurs when one agent represents both the buyer and seller. It’s legal in some states but can create conflicts of interest.
Mike’s policy: He prioritizes transparency and always puts his clients’ interests first.
16. Amortization
This is the process of paying off a loan over time through regular payments. Early payments mostly cover interest, while later ones pay down the principal.
Why it matters: Understanding amortization helps you plan your finances long-term.
17. Equity
Equity is the difference between your home’s value and what you owe on your mortgage. It grows as you pay down your loan or if your home’s value increases.
Mike’s tip: He can help you tap into your equity for renovations or investment opportunities.
19. Closing Disclosure
This document outlines the final terms of your loan, including monthly payments and closing costs. You’ll receive it at least three days before closing.
Mike’s role: He reviews this with you to ensure everything is accurate and clear.
Why Work with Mike McEntush?
Navigating real estate is easier when you have a knowledgeable, approachable, and dedicated professional by your side. Mike McEntush is more than just a REALTOR®—he’s your advocate, educator, and guide through every step of the process.
With over 14 years of experience, Mike has helped hundreds of buyers and sellers across Cincinnati, Milford, Loveland, Batavia, and beyond. His background in education and athletic training gives him a unique edge: he’s patient, strategic, and always focused on helping you win.
Whether you're buying your dream home, selling your current one, or investing in property, Mike brings the energy, expertise, and integrity you need.
Ready to Make Your Move?
Don’t let confusing real estate jargon hold you back. Whether you're buying or selling, Mike McEntush is here to help you understand every term, every step, and every opportunity.
📞 Call or text Mike today at (513) 675-1702
📧 Email: mike.mcentush@cbrealty.com
🌐 Visit: www.MikeSellsCincyHomes.com
Let’s turn your real estate goals into reality—together.
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