Selling a house in an easy situation is mostly about price and timing. Selling in a hard situation adds a pile of unfamiliar words. Lenders, title companies, and buyers use them as if everyone already knows what they mean. This glossary explains ten common terms in plain language. It is general information, not legal or financial advice.
The Money Terms
After repair value. What a house might be worth once it is fully renovated. Some cash buyers start their offer from this number, then subtract their costs.
Comps. Short for comparable sales. These are recent sales of similar nearby houses, used to estimate value.
Payoff. The amount needed to clear a loan at closing. It can differ from the balance on your last statement.
The Difficult Situations
Short sale. Homeowners often ask what is a short sale on a house after a notice arrives. In a short sale, a house sells for less than the mortgage balance, and the lender has to agree to take the smaller amount.
Foreclosure. The lender takes the property after missed payments. It is different from a short sale because the owner does not choose the buyer.
Lien. A legal claim on a property, such as a tax debt or an unpaid contractor bill. It has to be settled at closing.
The Closing Terms
Title company. The business that checks ownership records and prepares transfer documents.
Closing costs. The fees paid when a sale finishes. They often include title fees, transfer fees, taxes, and commissions.
As-is. A sale where the buyer takes the house in its current condition and the seller makes no repairs.
No-obligation offer. An offer you can decline without penalty.
Which Terms Apply to You?
- Behind on payments? Read about short sales and foreclosure first.
- Inherited a house? Ask about title and estate paperwork.
- Own a house that needs work? Learn about after repair value and as-is sales.
- Selling on a deadline? Ask how the closing date is set.
How One Utah Buyer Explains the Process
Scout Peak Home Buyers, based in St. George, explains its approach on a home buying process page. It describes three steps: a form, a 10 to 20 minute walkthrough, and a closing date you pick. It also shows its offer formula in plain terms, and says it has worked with sellers facing foreclosure, bankruptcy, and tax liens.
Tips for Using This Glossary
Keep this list nearby when you talk with a lender, an agent, or a buyer. If someone uses a word you do not recognize, ask them to explain it. A good professional will welcome the question. For advice about your own loan and taxes, speak with a housing counselor, an attorney, or a tax professional.