Simplifying Real Estate: Key Terms Every Sonoma County Buyer and Seller Needs to Know

Simplifying Residential Real Estate Terms for Buyers and Sellers

As a top-producing real estate agent in Sonoma County, California, I know that navigating the world of residential real estate can feel like learning a new language. That’s why I take an educational approach with all my clients, ensuring you understand each step of the process and feel confident in your decisions. Let me break down some of the most frequently used terms in plain English to help you feel comfortable on your home-buying or selling journey.

1. Listing When I talk about a "listing," I’m referring to a home that's for sale.

2. MLS (Multiple Listing Service) The MLS is a local private database I use to share and find homes for sale. It’s like an exclusive directory of all available properties in our area.

3. Agent vs. Realtor I’m a real estate agent, which means I’m licensed to help you buy or sell property. As a Realtor, I’m also a member of the National Association of Realtors and committed to their strict ethical standards.

4. Offer An offer is a formal proposal made by a buyer to purchase a home at a specific price. When I help buyers craft an offer or guide sellers in reviewing one, the goal is to create a win-win agreement.

5. Counteroffer If a seller isn’t satisfied with a buyer’s initial offer, we might respond with a counteroffer, suggesting changes like a higher price or different closing terms.

6. Escrow Escrow is a neutral third party that holds onto funds or documents until all conditions of a transaction are met. I often explain it as a safe middle ground for both buyer and seller.

7. Closing Closing is the final step in a real estate transaction. It’s the exciting day when the buyer officially gets the keys to their new home.

8. Earnest Money This is a deposit the buyer makes to show they’re serious about purchasing a home. If the sale falls through due to the buyer’s fault, the seller can potentially keep this money.

9. Appraisal An appraisal determines a property’s value based on factors like size, condition, and comparable home sales nearby. In most cases a lenders will require appraisals to ensure the home’s worth matches the loan amount.

10. Inspection A home inspection is an evaluation of a property’s condition, checking things like the roof, plumbing, and electrical systems. It’s a chance for buyers to spot any issues before moving forward with the deal.

11. Contingency A contingency is a condition that must be met for the sale to go through. Common contingencies include securing financing or passing an appraisal.

12. Closing Costs These are the fees and expenses buyers and sellers pay at closing. They can include loan origination fees, title insurance, and taxes.

13. Title The title is a document that proves ownership of a property. During the sale, I work with a title company to ensure the title is clear of any legal issues.

14. HOA (Homeowners Association) An HOA is a group that manages a neighborhood or condo complex. They often charge monthly fees and set rules for property upkeep.

By understanding these key terms, you’ll be better equipped to navigate the real estate process.

Whether you’re buying your first home or selling your fifth, my goal is to make the experience smoother and less intimidating. If you have any questions, I’m always here to help. Reach out!

Julianna Labra, REALTOR®

707-479-9559 call/text "Hablo Español"

3333 Mendocino Ave Suite 100, Santa Rosa, CA, 95403

CalBRE#01769015