Terminology & Processes
Real Estate Speak, Decoded
A plain-English glossary for buying and selling a home in the Seattle area
Kelly Azzarello Real Estate · Compass · Updated October 2026
Real estate has its own language. Listing descriptions are written to sell, contracts are written by lawyers, and the people around you use shorthand without realizing it. Whether you are buying in Sammamish, selling in Bellevue, or just curious what the neighbors' house is really worth, knowing the vocabulary helps you make better decisions and ask better questions.
This page is the starting point: a quick-reference glossary for homes in King County and the greater Seattle area. Where a term deserves more than a paragraph, we have marked it "Deeper post" and will link to a full explanation as each one is published.
How to use this guide
Skim the section that matches where you are: judging a home's condition, reading market terms, making an offer, or getting to closing.
Entries are short on purpose. Terms marked "Deeper post" will get their own article with examples as we publish them.
This is general education, not legal or financial advice. Forms, rules and customs change, so confirm the details for your situation with your agent, lender, escrow officer or attorney.
1. Property Condition
How a home is described often says as much about its condition as its price. These are the terms you will hear most when a home is older, lightly updated, or being sold by an estate. Many of them have no official definition, so treat them as a prompt to ask questions and get an inspection.
| Term | What it means |
|---|---|
| Good bones | The layout, structure and foundation look solid, but finishes and systems may be tired or dated. Ask what "good" is based on: foundation, framing, roof, drainage. Deeper post coming: Good bones |
| Original condition | Little has been updated since the home was built, which can mean decades-old wiring, plumbing, windows, furnace and roof. A plus for buyers who want character, a long to-do list for others. Deeper post coming: Original condition |
| Needs TLC | Cosmetic work at minimum, sometimes much more. The phrase is vague on purpose. |
| Handyman special / Fixer | Priced with repairs in mind. Some loan types have condition standards, so financing can be harder. Talk to your lender early. Deeper post coming: Fixer-uppers and renovation loans |
| Move-in ready / Turnkey | Updated enough to live in without immediate work. Definitions vary widely, so ask what was updated, when, and whether permits were pulled. |
| As-is | The seller is not planning to make repairs or give credits. It does not erase the seller's disclosure duties, and buyers should still inspect. Deeper post coming: As-is |
| Estate sale | Heirs or a personal representative are selling. They may have limited firsthand knowledge of the house, so disclosures can be thin. (In casual use it can also mean a sale of the contents.) Deeper post coming: Estate sales |
| Tear-down / Lot value | Most of the value is the land, not the house. Check zoning, setbacks, critical areas and permit costs before assuming you can rebuild. |
| Mid-century modern | Homes from roughly the 1940s to 1960s with open layouts, large windows, built-ins and natural materials. Many are still in original condition. Deeper post coming: Mid-century homes |
| Marketing phrases ("cozy," "charming," "bring your vision," "motivated seller") | Listing descriptions are written to sell. Some phrases are helpful, some are polite, and a few are code. Deeper post coming: Decoding the listing |
2. Listing Status and Market Terms
The status on a listing tells you where it is in the process. Names vary a little between MLS systems, so ask your agent how a label is used in the Northwest MLS.
| Term | What it means |
|---|---|
| First Look / Coming Soon | A new NWMLS listing status that took effect September 4, 2026, under a settlement between Compass and NWMLS. It lets a seller market a home as Coming Soon without public days-on-market and price-change figures. At the seller's option, brokers and their clients can tour, and offers and open houses can be allowed. Details are still settling, so ask us how it applies to a specific home. Deeper post coming: First Look and Coming Soon listings |
| Active | Currently on the market as available inventory. NWMLS counts these as active listings. |
| Pending (NWMLS) | A purchase agreement has been signed by buyer and seller but has not closed. NWMLS also uses more specific pending labels, so read the exact status: Deeper post coming: NWMLS status labels |
| Pending Inspection | The buyer is still in the inspection period. Deals can change here. |
| Pending Feasibility | Tied to a feasibility study, most common with land. |
| Pending Short Sale | Depends on the lender approving a sale for less than what is owed. These can take a long time. |
| Pending Back-up (BU) | The seller is accepting back-up offers behind the first buyer. |
| Contingent (NWMLS) | In Washington's MLS, this label is narrower than on national portals: it generally means the buyer's offer depends on selling their own home. Zillow and Redfin often use "contingent" more broadly. Deeper post coming: Contingent vs pending in Washington |
| Bump clause / bump notice | A provision letting the seller keep marketing the home and give the first buyer a deadline to remove a condition or step aside if a better offer arrives. |
| Closed / Sold | The sale is complete: ownership has transferred and the seller has been paid. NWMLS statistics use the date the status changes to Sold. |
| Back-up offer | An offer in second position that takes over if the first deal falls apart. |
| Days on market (DOM) | How long a home has been listed. NWMLS statistics measure it from the list date to the date all parties sign the purchase agreement. A high number can signal pricing or condition issues, but not always. |
| Months of inventory | Active listings divided by closed sales for the period. Lower numbers usually mean a faster, more seller-friendly market. Deeper post coming: Months of inventory and market type |
| Median price | The middle sale price: half of sales were higher and half lower. It is less distorted by a few very expensive sales than the average. Deeper post coming: Median vs average price |
| Buyer's market / seller's market | Shorthand for who has more leverage. Plenty of inventory favors buyers, and scarce inventory favors sellers. It varies by city, price range and season. Deeper post coming: Buyer's vs seller's market |
| Price reduction | The seller lowered the asking price. It can mean the first price missed the market, or it can just be a strategy. |
| Off-market / pocket listing | A home sold without being widely advertised on the MLS. Fewer buyers see it, which can affect price. |
| Withdrawn / Expired | The listing is no longer active without a sale. The seller may relist, change agents or change plans. |
| Offer review date | A date set by the seller when offers will be considered together, rather than one at a time as they arrive. Deeper post coming: Multiple offers and offer review dates |
| Multiple offers | Two or more buyers offering on the same home. Price, terms, timing and contingencies all matter. Deeper post coming: Multiple offers and offer review dates |
3. Money, Pricing and Value
| Term | What it means |
|---|---|
| List price | What the seller is asking. It is a starting point for negotiation, not a guarantee of value. |
| Comps (comparable sales) | Recently sold homes similar in size, age, condition and location. Agents and appraisers use them to estimate value. Deeper post coming: How comps work |
| CMA (comparative market analysis) | An agent's price opinion built on comps and current competition. It is different from an appraisal. |
| Appraisal | A lender-ordered opinion of value by a licensed appraiser. If it comes in lower than the contract price, the deal may need to change. Deeper post coming: Appraisals and appraisal gaps |
| Appraisal gap | The difference between the contract price and a lower appraisal. Buyers sometimes agree up front to cover some of it in cash. Deeper post coming: Appraisals and appraisal gaps |
| Assessed value | The county assessor's value used for property taxes. It is not the same as market value or appraised value. Deeper post coming: Assessed value vs market value |
| Price per square foot | List or sale price divided by square footage. Handy for quick comparison, but it ignores condition, lot, view and layout. |
| Buyer's broker compensation | Since 2022 in the NWMLS area, the seller alone decides whether to offer compensation to the buyer's broker. Any offer appears on the first page of the purchase and sale agreement and can be negotiated. Buyers agree on what they will pay their own broker at the start of the relationship and can ask the seller to help cover it. Deeper post coming: Who pays the buyer's agent |
| Down payment | The part of the purchase price you pay in cash up front. The loan covers the rest. Deeper post coming: Down payment options |
| PITI | Principal, interest, taxes and insurance: the main parts of a monthly mortgage payment. |
| PMI (private mortgage insurance) | Insurance on some conventional loans with a small down payment. It protects the lender and adds to your monthly cost. |
| DTI (debt-to-income ratio) | Your monthly debt payments compared with your income. Lenders use it to judge how much you can borrow. |
| Home equity | The part of your home's value you own: market value minus what you owe on loans. |
| Refinance | Replacing an existing mortgage with a new one, often to change the rate, term or payment. |
| Pre-qualification | A rough estimate of what you might borrow, usually based on information you state. |
| Pre-approval | A lender has reviewed your documents and issued a conditional commitment for a specific amount. Sellers take it far more seriously. Deeper post coming: Pre-qualified vs pre-approved |
| Earnest money | A deposit that shows the buyer is serious. It is typically held by the escrow company and applied toward the purchase at closing. Deeper post coming: Earnest money |
| Closing costs | Fees paid at closing, such as lender fees, escrow and title charges, and prepaid taxes and insurance. They are separate from the down payment. Deeper post coming: Closing costs |
| Seller concessions | Money the seller agrees to put toward the buyer's costs, often closing costs. Lenders limit how much is allowed. |
| Rate buydown / points | Paying upfront to lower the interest rate. Compare the cost against how long you expect to keep the loan. Deeper post coming: Rate buydowns |
| Escalation clause | A term where the buyer's offer automatically rises above a competing offer, up to a stated maximum. Deeper post coming: Escalation clauses |
| Cash offer | An offer with no financing contingency. It can close faster, but the buyer still needs proof of funds. |
4. Offers and the Contract
| Term | What it means |
|---|---|
| Mutual acceptance | The moment both buyer and seller have signed agreed terms and the contract is binding. |
| Counteroffer | A response that changes the terms of an offer. The back-and-forth continues until both sides agree or walk away. |
| Contingency | A condition that must be met, or the buyer may have the right to cancel or renegotiate. Common ones are inspection, financing and appraisal. Deeper post coming: Contingencies explained |
| Inspection contingency | Gives the buyer a set period to inspect the home and negotiate repairs or credits, or end the deal. Deeper post coming: Home inspections and what to do with the report |
| Financing contingency | Protects the buyer if the loan is not approved by the deadline. |
| Appraisal contingency | Lets the buyer renegotiate or cancel if the appraisal is below the contract price. |
| Home-sale contingency | The buyer's offer depends on selling their current home. It weakens an offer in a competitive market. |
| Waiving contingencies | Giving up a protection to make an offer more attractive. It can work, but the risk shifts to the buyer. Deeper post coming: Waiving contingencies |
| Possession date | The date the buyer gets the keys. It may differ from the closing date. |
| Rent-back (post-occupancy) | The seller stays in the home for a short, agreed time after closing, usually paying the buyer rent. |
| Walk-through | The buyer's final look at the home, typically shortly before closing, to confirm its condition and that agreed repairs are done. |
Who is Who in a Transaction
| Term | What it means |
|---|---|
| Listing agent | Represents the seller and markets the home. |
| Buyer's agent | Represents the buyer in finding and negotiating for a home. |
| Dual agency | One brokerage or agent represents both sides, which Washington law allows only with disclosure and written consent. Deeper post coming: Dual agency |
| FSBO (for sale by owner) | A seller marketing a home without a listing agent. |
| Escrow officer | The neutral professional who manages the deposit, documents and funds through closing. |
5. Common Transaction Forms
A Washington home purchase involves a stack of forms. Most of them are standard forms that NWMLS owns and operates statewide, developed with Washington REALTORS, and they attach to the purchase and sale agreement. This is a quick map of the ones you will hear about most. Form numbers are NWMLS numbers and forms are revised from time to time, so ask us for the current version before you sign anything.
| Term | What it means |
|---|---|
| Buyer representation agreement | A written agreement between a buyer and a broker that sets out the services and the broker's compensation. Washington's revised agency law, effective January 1, 2024, requires a written services agreement before a broker represents a buyer, and it is typically signed before touring homes. Compensation should be stated clearly up front. Buyers can ask the seller to help cover it, but the seller is not required to. Deeper post coming: Buyer representation agreements |
| Agency disclosure and dual agency consent | Washington requires brokers to explain who they represent. If one brokerage ends up representing both sides, written consent is required. Deeper post coming: Agency and dual agency |
| Form 17: Seller disclosure statement | The seller's statement of what they know about the property's condition. State law gives buyers a limited window to rescind after receiving it. Read it closely, then compare it with your inspection. Deeper post coming: Form 17 |
| Form 21: Residential purchase and sale agreement | The core contract. It covers price, earnest money, closing and possession dates, what stays with the home, and what happens if someone does not perform. It becomes binding at mutual acceptance, and most other forms attach to it. Deeper post coming: The purchase and sale agreement |
| Form 22A: Financing addendum | The financing contingency: lets the buyer cancel if they cannot get the loan. Deeper post coming: Financing contingency |
| Form 22AD / 22EF: Appraisal gap protections | Addenda that deal with a low appraisal, for example by committing the buyer to cover part of a gap or increase the down payment. Deeper post coming: Appraisals and appraisal gaps |
| Form 35: Inspection addendum | The inspection contingency: gives the buyer a set time to inspect, then accept, negotiate repairs, or end the deal. Related inspection forms handle the buyer's response and pre-inspections. Deeper post coming: Inspection contingency |
| Form 35F: Feasibility | A feasibility contingency, most common for land or development property, that lets the buyer study whether the property will work for their plans. |
| Form 22B / 22C: Buyer's home sale | Form 22B makes the offer depend on the buyer selling their current home first. Form 22C covers a buyer whose current home is already under contract. Deeper post coming: Sale-of-home contingencies and bump notices |
| Bump notice and response | Forms used when the seller keeps marketing a home that has a sale-of-home contingency. The seller can give the first buyer a deadline to remove the condition or step aside for a back-up offer. Deeper post coming: Sale-of-home contingencies and bump notices |
| Form 22D: HOA / condo review | Gives the buyer time to review association finances, rules, assessments and resale documents, with a right to rescind after review. Deeper post coming: Condo and HOA documents |
| Forms 22K, 22W, 22U: Septic, well and utilities | Addenda for septic inspections, well and water systems, and utility verification on rural or non-city-served properties. Deeper post coming: Septic, wells and rural properties |
| Form 22T: Timber and mineral rights | An addendum for properties where timber or mineral rights matter. |
| Form 22J: Lead-based paint disclosure | Used for homes built before 1978 to address possible lead-based paint. |
| Loan Estimate and Closing Disclosure | Standard lender forms, not NWMLS forms. The Loan Estimate shows expected loan terms and costs early on. The Closing Disclosure shows final terms and costs before closing. Deeper post coming: Closing costs |
Why the buyer representation agreement comes first
It is usually the first document a buyer signs, and it affects every later step. We will cover it in its own post, along with how it ties into the rest of the forms in this section.
6. Disclosures, Inspections and Title
| Term | What it means |
|---|---|
| Seller disclosure (Form 17) | In Washington, sellers of most residential property complete a standard statement about the property's known condition. Buyers should read it closely and treat it as a starting point for questions, not a substitute for inspection. Deeper post coming: Form 17 |
| Home inspection | A visual review of the home's major systems and structure by a licensed inspector. Buyers use it to understand condition and negotiate. Deeper post coming: Home inspections |
| Pre-listing inspection | An inspection done by the seller before listing, so surprises are known and can be fixed or priced in. Deeper post coming: Pre-listing inspections |
| Sewer scope | A camera inspection of the sewer line from the house to the connection. It can reveal roots, breaks or collapses that are expensive to fix. Deeper post coming: Sewer scopes |
| Preliminary title report | A report on ownership, liens, easements and other recorded items affecting the property. Deeper post coming: Title and escrow |
| Easement | A legal right for someone else to use part of the property, such as a utility or a neighbor's access. |
| Lien | A legal claim against a property for an unpaid debt. Liens generally must be cleared at or before closing. |
| CC&Rs | Covenants, conditions and restrictions: the rules recorded against a property or community. |
| HOA (homeowners association) | An organization that manages shared areas and enforces community rules, funded by dues. Review the budget, reserves and rules before buying. Deeper post coming: HOA documents |
7. Escrow, Closing and After
| Term | What it means |
|---|---|
| Escrow | A neutral third party (an escrow officer, often at a title company) that holds the deposit and documents and coordinates the closing. Deeper post coming: Title and escrow |
| Title insurance | Insurance that protects against certain ownership and recorded-claim problems from before you bought. Deeper post coming: Title and escrow |
| Closing (settlement) | The final step where documents are signed, funds are transferred and ownership changes. |
| Closing Disclosure | A standard form from the lender listing the final loan terms and costs, which buyers receive before closing. |
| Recording | The official filing of the deed with the county. Ownership is generally complete once the deed is recorded. |
| Prorations | Splitting ongoing costs like property taxes and HOA dues between buyer and seller as of the closing date. |
| Excise tax | Washington charges a real estate excise tax on property sales, typically paid by the seller at closing. Deeper post coming: Seller costs at closing |
8. Property Types and Features
| Term | What it means |
|---|---|
| Rambler | A single-level home. Common in Northwest neighborhoods from the 1950s through the 1970s. |
| Daylight basement | A basement partly above grade with windows and often direct access to the yard. |
| ADU / DADU | An accessory dwelling unit, either attached or detached, such as a mother-in-law apartment or backyard cottage. Rules vary by city, so confirm what is legal and permitted. Deeper post coming: ADUs |
| Finished vs unfinished square footage | Finished space is heated, permitted living area. Unfinished space, like a basement or attic, is often counted differently. Deeper post coming: Square footage |
| Legal bedroom | A room that meets code requirements, typically including a closet and a proper exit or window, so it counts as a bedroom. |
| Fee simple | The most common form of ownership: you own the home and land outright, subject to recorded restrictions. |
| Condo vs townhome | A condo owns the unit and shares the building and common areas. A townhome typically owns the home and sometimes the land beneath it, depending on how it was created. |
Sources and Credits
Definitions on this page are written in our own words. We looked to NWMLS first, then Compass, and used other sources only where neither covered a point. Where a definition draws on a published source, we have credited it here. Confirm current details with your agent, since MLS rules and forms change.
- Northwest Multiple Listing Service (NWMLS), "NWMLS Glossary / Terminology". Statistics definitions: Active Listing, Pending Sale, Closed Sale, Months of Inventory, Median Price and Average Days on Market. nwmls.com/wp-content/uploads/2022/06/MLS-Glossary.pdf
- Compass, "Compass-NWMLS Settlement Gives Washington State Homeowners Phased Marketing Choices for the First Time Ever" (August 31, 2026). The First Look status, effective September 4, 2026. This is Compass’s own announcement. compass.com/newsroom/press-releases/a7Jxi0oJq1JansK7dBFWO
- Northwest Multiple Listing Service, "NWMLS Leads the Industry in Providing Consumers with Transparency, Choice and Options to Negotiate" (May 28, 2024). Written agreements under Washington’s revised agency law, and buyer broker compensation. nwmls.com/nwmls-leads-the-industry-in-providing-consumers-wi
- Northwest Multiple Listing Service, "Evolution of Real Estate Transaction Forms: 40 Years of Powering the Region’s Real Estate Industry" (December 23, 2024). Background on NWMLS statewide forms. nwmls.com/evolution-of-real-estate-transaction-forms-40-year
- PNW Residences, "Contingent vs. Pending in Washington" (2026). How NWMLS uses Contingent, Pending Inspection, Pending Feasibility, Pending Short Sale and Pending BU, and how bump notices work (secondary source). pnwresidences.com/blog/contingent-vs-pending-washington
- The Madrona Group, "Purchase and Sale Agreement (Form 21)" and related forms explainers. Secondary source for the NWMLS form numbers: Forms 17, 22A, 22AD, 22EF, 22B, 22C, 22D, 22J, 22K, 22T, 22U, 22W and 35. themadronagroup.com/faq/what-is-the-purchase-sale-agreement-
- The Madrona Group, "Buyer Representation Agreement FAQ" (2024). Compensation details and timing before touring (secondary source). themadronagroup.com/wp-content/uploads/2024/10/BUYER-REPRESE
Questions? We are glad to help.
Real estate terms can feel like a foreign language, and every transaction is a little different. If a phrase in a listing or a contract is not clear, ask. Helping clients understand what they are reading is one of the most useful things we do.
We work with contractors, inspectors and other vendors regularly, and have helped many clients through the surprises that come up along the way. We cannot recommend specific companies, but we can help you find the right fit and compare bids.
Kelly Azzarello Real Estate | Compass
Email: kelly@kellyazzarello.com
Phone: (425) 830-6457
This page is for general educational purposes and is not legal, tax or financial advice. Consult the appropriate professional for your situation.