Think You Know Real Estate?

The asking price is the seller's target. Market value is set by comparable sales, and homes regularly close above or below asking.

Commission is typically paid by the seller at closing and split between the listing and buyer agents. The exact split is negotiable.

Earnest money sits in escrow as a good-faith deposit and is credited toward your purchase at closing. You lose it only if you breach the contract outside your contingencies.

An inspection evaluates condition and needed repairs. An appraisal estimates value for the lender, and a title search checks ownership and liens.

Conventional loans can go as low as 3%, FHA loans 3.5%, and VA and USDA loans can allow zero down. 20% mainly lets you avoid private mortgage insurance.

Pre-approval means a lender reviewed your credit and income and is willing to lend a certain amount, subject to conditions. It is not a loan guarantee.

Local governments set assessed values and millage rates. Lenders may collect taxes through escrow, but they do not set them.

Days on market counts how long a listing has been active. It is a quick read on demand for that home and price range.

A title search reviews public records for anything that could cloud ownership, like unpaid liens or disputes, before a title company issues your policy.

In a seller's market, demand outpaces supply, so bidding wars and fast sales are common. A buyer's market is the opposite.