If you need assistance, please call 503-810-3295

5 Real Estate Terms You Need to Know

Thursday, October 5, 2017   /   by Melissa Nielsen

5 Real Estate Terms You Need to Know


5 Real Estate Terms You Need to Know

Real estate can be confusing at first, largely due to the many different terms and phrases you have to know and understand. To make it a little easier to grasp, here’s a simple explanation of five common real estate terms.

Pre-Approval Letter

A pre-approval letter is a statement from the bank that basically estimates how much money they’re willing to loan to a particular buyer. This is extremely helpful to the buyer because it gives them a much clearer idea of what kind of home they can realistically afford.


An appraisal attempts to determine an accurate market value for a property by examining both the actual property and comparable homes that have recently been sold in the area. This process is done by an licensed appraiser and is done for the sake of the bank, who wants to ensure that it is not investing in a property that is overpriced within its market.


Closing Costs

Closing costs are a group of expenses that you’ll incur at the end of your home buying process including loan processing costs, title insurance, and excise tax. These costs usually amount to about 2-5% of the total purchase price of the property, but it is possible to negotiate some of the costs down.

Title Insurance

Title insurance ensures that the seller of the home actually has the right to sell it! Title insurers also search public records to make sure there are no liens on the home,such as unpaid taxes or contracting bills.



The escrow process while buying a home involves a neutral third party overseeing the process from the deal being signed to the property being officially transferred. The home is held “in escrow” to ensure that both parties are meeting their responsibilities during the deal and satisfying all of the conditions in the contracts.

Keller Williams Realty Portland Premiere - The Clark Group
Alex Clark
7504 SW Bridgeport Rd
Portland, OR 97224

The content relating to real estate for sale on this web site comes in part from the IDX program of the RMLS(TM) of Portland, Oregon. Real estate listings held by brokerage firms other than Alex Clark - The Clark Group / Keller Williams Realty Portland Premiere are marked with the RMLS(TM) logo, and detailed information about these properties includes the names of the listing brokers. Listing content is copyright © RMLS(TM), Portland, Oregon.

All information provided is deemed reliable but is not guaranteed and should be independently verified. This content last updated 6/19/2024 2:05 AM CST. Some properties which appear for sale on this web site may subsequently have sold or may no longer be available.

This site powered by CINC: www.cincpro.com