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50 Real Estate Terms Every Bay Area Buyer Must Know

  • Writer: Soumojit Sarkar
    Soumojit Sarkar
  • Oct 7
  • 4 min read

Picture this: You’ve found your dream home in San Francisco or Silicon Valley. You’re ready to make an offer, but the contract reads like it was written in another language. Between escrow, LTV ratios, and CC&Rs, it’s easy to feel overwhelmed.


That’s why we’ve created this 50-term real estate glossary, tailored for Bay Area buyers. Whether you’re searching for affordable homes Bay Area or planning to leverage a buyer rebate Bay Area, this guide will help you speak the language of real estate fluently.


And remember: at FlatFeeBuyers, we charge only $9,999 as your flat fee agent, giving you the chance to keep more savings through rebates, something traditional agents in San Francisco don’t want you to know.


The Glossary: 50 Real Estate Terms Simplified


Real Estate Professionals & Roles

  1. Real Estate Agent – Licensed professional helping buyers and sellers with transactions.

  2. Realtor – A real estate agent who belongs to the National Association of Realtors (NAR).

  3. Flat Fee Agent – An agent charging a fixed fee instead of a commission. FlatFeeBuyers charges $9,999 flat.

  4. Flat Fee Realtor – A Realtor offering flat fee pricing; some provide limited service, but FlatFeeBuyers offers full service.

  5. Real Estate Attorney – A lawyer specializing in contracts, closings, and disputes.

  6. Dual Agency – When one agent represents both buyer and seller (legal in CA but requires disclosure).


Property Status & Offers

  1. Pending – A property under contract, awaiting closing.

  2. Backup Offer – A secondary offer activated if the first deal fails.

  3. Short Sale – Sale of a home for less than the mortgage balance, requiring lender approval.

  4. Escalation Clause – Clause in a contract that automatically increases your offer if competing bids are higher.


Mortgage & Financing

  1. ARM Caps – Limits on how much adjustable-rate mortgage payments can change.

  2. Points (Discount Points) – Upfront fees paid to lower mortgage interest.

  3. Origination Fee – A lender’s processing fee for creating a new loan.

  4. Amortization Schedule – A breakdown of principal vs. interest in each payment.

  5. Loan-to-Value Ratio (LTV) – Percentage of a home’s value financed by a loan.

  6. Credit Score – A number measuring your creditworthiness.

  7. Prequalification – Early estimate of what you may borrow.

  8. Assumable Mortgage – A loan a buyer can take over from a seller.

  9. Conventional Loan – A loan not backed by the government.

  10. FHA Loan – A government-backed loan with lower down payment requirements.

  11. VA Loan – A loan for veterans and active-duty military, usually requiring no down payment.

  12. Jumbo Loan – A mortgage exceeding conventional loan limits, common in luxury San Francisco homes.

  13. Mortgage Insurance Premium (MIP) – Insurance on FHA loans to protect lenders.

  14. Debt-to-Income Ratio (DTI) – Key ratio lenders check before approving loans.


Title, Ownership & Legal

  1. Title Insurance – Protects buyers and lenders from disputes over ownership.

  2. Preliminary Title Report – Shows liens or claims before closing.

  3. Joint Tenancy – Co-ownership with survivorship rights.

  4. Tenancy in Common – Co-ownership where shares can be unequal and inheritable.

  5. Clear Title – Ownership free from liens or disputes.

  6. Deed of Trust – A security instrument where a trustee holds the title until the loan is paid.

  7. Title Search – Review of public records to confirm ownership.


California-Specific Terms

  1. Prop 13 – Caps property tax increases in California.

  2. Mello-Roos – Special taxes in some communities for infrastructure.

  3. Assessed Value – Value set by the tax assessor for property taxes.

  4. Property Tax – Local tax based on assessed value.


Community & Usage

  1. Homeowners Association (HOA) – Governs shared rules and amenities in a community.

  2. CC&Rs (Covenants, Conditions & Restrictions) – HOA or developer rules on property use.

  3. Zoning – Local rules on land use.

  4. Private Transfer Fee – Fee charged by HOAs or developers when a property is sold.


Insurance & Risk

  1. Homeowners Insurance – Covers fire, theft, and certain disasters.

  2. Flood Insurance – Required for properties in flood zones.

  3. Earthquake Insurance – Vital in California, since quakes aren’t covered under standard policies.


Property Features & Value

  1. Fixture – An item permanently attached to a property.

  2. Comparables (Comps) – Recently sold homes used to determine value.

  3. Fair Market Value – What a property would sell for in today’s market.

  4. Comparative Market Analysis (CMA) – Report estimating a property’s worth using comps.

  5. Appreciation – Increase in property value over time.

  6. Market Value – The amount a property is worth in current conditions.

  7. Seller’s Market – Market where demand is greater than supply, raising prices.

  8. Buyer’s Market – Market with more supply than demand, favoring buyers.


Why These Real Estate Terms Matter

In the Bay Area real estate market, deals move fast. If you don’t understand terms like backup offer or DTI, you could lose out on your dream home, or overpay without realizing it.


But here’s the silver lining: knowing these terms, combined with FlatFeeBuyers’ model, means you’re not just saving time, you’re saving money. With our buyer rebate, Bay Area advantage, and commission rebate San Francisco, you can reduce closing costs and keep thousands more for renovations, furniture, or future investments.


Conclusion

Buying in San Francisco or the Bay Area doesn’t have to feel intimidating. By mastering this glossary of 50 terms, you’ll walk into every negotiation with confidence, and with FlatFeeBuyers as your flat fee agent, you’ll also walk away with more money in your pocket.


Whether you’re searching for affordable homes Bay Area, securing financing, or reviewing title reports, remember: FlatFeeBuyers charges just $9,999 for full service, no matter the home price. That means savings, transparency, and peace of mind, without the jargon.


FAQs


How to calculate savings using a flat fee real estate model

Take your home price × 2.5% (average commission). Subtract $9,999 (FlatFeeBuyers’ fee). That’s your savings. Example: On a $1.5M home, 2.5% = $37,500. With FlatFeeBuyers, you save about $27,500.


How to close on a Bay Area home in under 30 days

Work with a proactive and expert agent like FlatFeeBuyers, get pre-approved early, respond quickly to requests, and choose a responsive lender. Our streamlined process helps many Bay Area buyers close in under 30 days.


How to choose the best buyer’s agent in San Francisco

Look for transparency, local expertise, reviews, and cost savings. FlatFeeBuyers combines Bay Area market knowledge with a flat $9,999 fee, ensuring you get the best representation without overpaying commissions.


How to avoid overpaying in the Bay Area real estate market

Hire an experienced negotiator, review comparables (CMA), and avoid emotional bidding wars. FlatFeeBuyers helps buyers stay disciplined while also saving thousands in commission fees.


 
 
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