Real Estate Terms Every Home Seller Should Know

Selling your home—whether through an agent or directly to a cash buyer—can feel overwhelming. Contracts, inspections, contingencies… the paperwork alone can make your head spin.

At MG Property Bros, we believe knowledge is power—and that understanding a few key real estate terms can help you feel more confident, avoid costly mistakes, and choose the best way to sell your home.

Here’s a simple guide to the top real estate terms every home seller should know.

1. Listing Agreement

A listing agreement is the contract between you and a real estate agent that gives them permission to market and sell your home. It often includes commission rates, time limits, and cancellation terms.

If you’re selling directly to MG Property Bros, you don’t need a listing agreement at all—no agents, no commissions.

2. Asking Price vs. Sale Price

• Asking Price: What you hope to get
• Sale Price: What the buyer actually pays

Your asking price can be influenced by market trends, condition of your home, and buyer demand—but the sale price is what closes the deal.

3. As-Is Sale

Selling a property as-is means you're selling it in its current condition, with no repairs or updates. The buyer accepts any problems the property may have.

MG Property Bros specializes in as-is purchases—no repairs, cleaning, or prep needed.

4. Offer (or Purchase Agreement)

An offer is the buyer’s formal proposal to purchase your home. Once you accept it, the offer becomes a purchase agreement—the legal contract that outlines the terms of the sale.

5. Contingency

A contingency is a condition that must be met for the sale to proceed. Common ones include:

• Inspection contingency: Buyer can back out if the home fails inspection
• Appraisal contingency: The house must appraise for the agreed price
• Financing contingency: The buyer must secure a loan

When you work with MG Property Bros, we buy with no contingencies, which means fewer delays and faster closings.

6. Escrow

Escrow is a third party that holds funds, documents, and instructions until all parts of the sale are complete. It protects both buyer and seller during the transaction.

7. Closing Costs

Closing costs include title fees, taxes, insurance, and more. They’re typically 6–10% of the home’s value in a traditional sale.

When you sell to MG Property Bros, we cover all closing costs—you pay nothing out of pocket.

8. Fair Market Value

This is what your home would sell for under normal conditions, based on:

• Recent comparable sales (“comps”)
• Neighborhood trends
• Property condition

9. Days on Market (DOM)

DOM is how long your property stays listed before receiving an offer. The longer a house sits, the more it may raise red flags to buyers.

MG Property Bros typically makes an offer within 24 hours—and we’re ready to close when you are.

10. Equity

Your equity is the difference between what your home is worth and what you still owe on it. Example:

• Home Value: $250,000
• Mortgage Balance: $170,000
• Equity: $80,000

You get your equity as part of your payout when you sell.

Bonus: Other Helpful Terms

• iBuyer: A tech-based company that makes quick online cash offers (but often with hidden fees)
• Wholesaler: Someone who gets your home under contract, then tries to sell the contract to another buyer for profit
• Rent-Back: When the seller stays in the home after closing for a short time
• Off-Market Sale: Selling your home privately without listing on the MLS

At MG Property Bros, We Keep Things Simple

We know most homeowners aren’t real estate pros—and you shouldn’t have to be. When you work with us:

• We explain every step in plain English
• We never pressure or mislead
• We help you understand your options before you make a decision

‍