Do you ever hear REALTORS® talking and wonder what in the world they are talking about? Real Estate has its own unique set of terms. Here are some of the most popular and what they mean so you can help "speak the language."

Addendum – these are the additional documents that go into a real estate contract.

Appraisal – this is how a loan officer determines if the property is worth as much (or as little) as the buyer is willing to pay for it.

Closing – this is the date that the buyer's purchase will record at the County and become their property.

Closing Costs – All of the expenses paid by the buyer and the seller when the real estate deal closes. These can include the brokerage commission, mortgage-related fees, escrow or attorney's settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs are generally paid through escrow.

Commission – this is the amount the real estate agent makes from the sale. It is usually a percentage.

Contingency – this is a condition that has to be fulfilled in order for another event to happen.  Example: The successful purchase of home B is contingent on the successful sale of home A.

Escrow – this is the financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled.

Foreclosure - The process of taking possession of a mortgaged property as a result of someone's failure to keep up mortgage payments.

MLS – this stands for Multiple Listing Service and serve as the central information source for brokers to share their real estate listings with cooperating brokers.

Zero Down – this means there is no out of pocket expense for the borrower (buyer).

Old Colony, REALTORS® is the region's largest independently owned real estate company.  Serving the Kanawha Valley, Raleigh County and southern West Virginia, Morgantown and North Central West Virginia, Cabell and Wayne Counties, Ashland and Southeastern Ohio.  Old Colony was founded in 1944 in Charleston, West Virginia.