FSBO stands for “For Sale By Owner.” It is a term used when a property owner offers their home for sale without hiring a real estate agent or agency to represent them.

A Realtor® is a licensed real estate agent or broker who is a member of the National Association of Realtors® and the state board of Realtors®. Realtors® act as intermediaries between buyers and sellers of real estate, helping to match buyers who wish to purchase with sellers who wish to sell, and guiding both parties through the transaction process.

An HOA is typically a non-profit organization that manages and enforces rules for a subdivision or planned community on behalf of its homeowners. Members pay dues that fund shared maintenance and amenities, and all homeowners in the community are generally required to follow the HOA’s rules and regulations.

A real estate agent brings market knowledge, negotiating experience, and transaction expertise that most buyers and sellers do not have on their own. A good agent helps you avoid costly mistakes, price your home correctly, navigate inspections and contracts, and close on time — while advocating for your best interests at every step.

The MLS is a shared database used by real estate professionals to list properties for sale and access information on properties that have sold. It is the most complete and up-to-date source of real estate listing data available. While some MLS information is available publicly through sites like Zillow or Realtor.com, the full data set — including detailed sold records — is only available to licensed, paid subscribers.

Title insurance protects both the buyer and the lender against financial loss resulting from defects in a property’s title — such as outstanding liens, undisclosed heirs, errors in public records, or other title problems that may not be discovered until after the purchase. In Utah, title insurance is a standard part of most real estate transactions.

An escrow officer is a neutral third party — typically employed by a title company — who manages the closing process of a real estate transaction. They hold funds and documents in trust, prepare title documents, coordinate the signing of paperwork by all parties, and disburse funds once all conditions of the sale have been met.

The Listing Agent represents the seller and is responsible for marketing the property and negotiating on the seller’s behalf. The Selling Agent — also called the Buyer’s Agent — represents the buyer and helps them find a property and negotiate the purchase. In some transactions, the same agent represents both parties, which is known as dual agency.

A real estate broker has completed additional education and licensing beyond a standard real estate agent, giving them the legal authority to own and operate their own real estate brokerage. Brokers can work independently, hire agents to work under them, and take on additional legal and financial responsibilities. A broker may also be a Realtor® and perform all the same transaction duties as an agent.

Closing costs are the fees and expenses paid at the closing of a real estate transaction when the title of the property transfers to the buyer. They typically include lender fees, title insurance, escrow fees, property taxes, prepaid interest, and recording fees. Closing costs can be incurred by both the buyer and the seller, and they can sometimes be negotiated as part of the purchase contract.

Not necessarily. It is not uncommon to qualify for a new loan while you still own your current home, depending on your financial situation. A lender can help you determine whether you qualify to carry both mortgages simultaneously. Another option is to make your purchase offer contingent on the sale of your current home — this is known as a contingency contract. Your real estate agent can advise you on which approach makes the most sense given current market conditions.

There is an important distinction between how much you can borrow and how much you should borrow. Lenders will qualify you based on your income and debts, but your comfort level with the monthly payment over the long term matters just as much. Use our Affordability Calculator to get a quick estimate, then talk to a lender to understand your full range of options.

Real estate agents use a Comparative Market Analysis (CMA) to determine property value using similar methods to a formal appraisal. We look at recently sold properties in the same area with similar size, age, and features to establish an average price per square foot, then adjust for the specific characteristics of your property. Request a free CMA here.

Any time of year can be a good time to list. Spring and summer typically bring more buyer activity, but they also bring more competition from other sellers. Fall and winter listings often face less competition and tend to attract more serious buyers. The most important factor is pricing your home accurately based on current market conditions.

A counteroffer occurs when a seller receives a purchase offer and responds with different terms rather than accepting or rejecting outright. The seller may counter on price, closing date, included items, contingencies, or other terms. The buyer can then accept, reject, or counter again. This back-and-forth continues until both parties agree or one party walks away.

Comparables — commonly called comps — are recently sold properties that are similar to a subject property in size, location, condition, and features. They are used by real estate agents and appraisers to determine a property’s current market value.

It depends on whether you are a buyer or a seller. Sellers are generally bound by the listing agreement term unless there is an opt-out clause. Buyers who have not yet deposited earnest money can usually exit more easily. However, once earnest money has been deposited, canceling a purchase contract may result in forfeiting those funds. Always review your contract carefully and consult your agent before making any decisions.

An Exclusive Right to Sell listing is the most common type of listing agreement. During the contract period, the seller cannot list the property with any other agent, and the listing agent is entitled to their commission even if the seller finds a buyer independently.

Repair responsibility is negotiable. After a home inspection, the buyer can request repairs, a price reduction, or a credit at closing. The seller can agree, decline, or counter. If the seller refuses to address defects not disclosed prior to the contract, the buyer may have the right to cancel and recover their earnest money — depending on the purchase agreement terms.

Overpricing is one of the most common and costly seller mistakes. A home priced above market value will sit longer, accumulate days-on-market that signal something may be wrong, and often end up selling for less than it would have at the right price from the start.

No. As a seller, you are not obligated to accept any offer until you have signed a purchase contract. You can accept, reject, or counter any offer — as long as your decision does not violate fair housing laws. Price is important, but financing type, contingencies, and closing timeline can matter just as much.

Start with a Comparative Market Analysis based on recently sold, similar properties in your area. A general rule of thumb is to price within 5 to 10 percent of your most comparable sold properties, adjusted for the condition and features of your home. Accurate pricing from day one attracts more buyers and typically results in a faster sale at a stronger price.

Minimum credit score requirements vary by loan type. FHA loans generally require a minimum score of 580 for the 3.5% down payment option. Conventional loans typically require a score of 620 or higher. VA and USDA loans have their own guidelines. The higher your credit score, the better the interest rate you are likely to qualify for.

If you receive a tax statement for a period during which you owned the property and those taxes have not been paid, you are responsible for the taxes accrued during your ownership. Your closing documents should reflect any tax prorations agreed to at closing. Contact your escrow officer or title company with any questions.

In most cases when you have a mortgage, the lender will require you to pay property taxes and homeowner’s insurance through an escrow account. Some lenders may allow you to waive escrow under certain conditions — typically if you have significant equity and a strong payment history — but this varies by lender and loan type.

Yes. The Real Estate Settlement Procedures Act (RESPA) limits how much a lender can require in an escrow account. The initial deposit is generally limited to the amount needed to cover the first payment period’s taxes and insurance, plus a cushion of no more than two months of escrow payments. Lenders must provide an annual escrow analysis and refund any surplus over the allowed cushion.

PMI is typically required when a buyer puts down less than 20% on a conventional loan. It protects the lender — not the buyer — in case of default. The most straightforward way to avoid PMI is to make a down payment of 20% or more. Unlike FHA mortgage insurance, conventional PMI can be cancelled once you reach 20% equity in your home.

An escrow account is set up by your mortgage lender to collect and hold funds for property-related expenses paid annually — primarily property taxes and homeowner’s insurance. A portion of your monthly mortgage payment is deposited into this account, and the lender pays those bills on your behalf as they come due.

An ARM (Adjustable Rate Mortgage) is a home loan with an interest rate that changes at predetermined intervals after an initial fixed period. For example, a 5/1 ARM has a fixed rate for the first five years and then adjusts annually. ARMs often start lower than fixed mortgages but the rate — and your payment — can increase significantly over time.

A rate lock is a lender’s guarantee to hold a specific interest rate for a borrower for a defined period — typically 30 to 60 days while the loan is being processed. This protects the buyer from rate increases before closing.

Mortgage payments can change due to an ARM rate adjustment, or more commonly due to increases in property taxes or homeowner’s insurance premiums that affect your monthly escrow payment. Your lender is required to send you an annual escrow analysis explaining any changes.

Underwriting is the process by which a lender evaluates the risk of a mortgage loan application. An underwriter reviews the borrower’s financial profile — income, credit history, assets, and debts — as well as the property itself, to determine whether the loan meets the lender’s guidelines.

Pre-qualification is an initial estimate based on a general review of your income and debts without verifying documentation. Pre-approval is a more formal process where the lender verifies your financial information and issues a conditional commitment for a specific loan amount. Pre-approval carries significantly more weight with sellers. Learn more about getting pre-qualified here.

The origination fee is charged by the lender for processing and underwriting your loan — typically expressed as a percentage of the loan amount. For example, a 1% origination fee on a $300,000 loan would be $3,000. Always review your Loan Estimate carefully to understand all fees being charged.

Your DTI is the percentage of your gross monthly income that goes toward all monthly debt obligations — including the proposed mortgage payment, property taxes, insurance, and existing debts. Most conventional loan programs prefer a DTI of 45% or lower.

A credit score — commonly called a FICO score — is a numerical rating of your creditworthiness based on your credit report. It is calculated using payment history, amounts owed, length of credit history, types of accounts, and recent inquiries. Scores range from 300 to 850. Mortgage lenders use your score to determine eligibility and interest rates.

The choice of mortgage lender is always yours to make. Builders sometimes offer closing cost incentives for using their preferred lender, but it is always worth comparing rates and fees with other lenders. A fraction of a percent difference in interest rate can mean thousands of dollars over the life of the loan.

The mortgage process typically takes 30 to 45 days from application to closing. Being prepared with all required documents from the start — pay stubs, tax returns, bank statements, and ID — can help keep your transaction on schedule.

Lenders require a clear title to ensure the property can be used as collateral without competing claims. Outstanding liens, judgments, or unpaid taxes must be resolved before the title company can issue a title insurance policy — which the lender requires to protect their first lien position.

The actual signing appointment at closing typically takes 30 to 60 minutes. If you review your closing disclosure before your appointment and come prepared with questions, the process tends to go smoothly. Your escrow officer will walk you through each document.

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a typical monthly mortgage payment. Principal reduces your loan balance, interest is the cost of borrowing, taxes are your property tax escrow contribution, and insurance covers homeowner’s insurance and, if applicable, PMI.

A piggyback loan involves two mortgages simultaneously — typically 80% first and 10% second, with 10% down. This allows buyers to avoid PMI while putting less than 20% down. The tradeoff is that second mortgages typically carry higher interest rates.

Prepaid interest is the interest charged on your mortgage from your closing date to the end of that calendar month. Because mortgage interest is paid in arrears, the first full payment is due the first of the second month after closing. Prepaid interest collected at closing covers that gap.

A gift letter is a signed document from a family member or approved donor confirming that funds provided to a borrower are a gift — not a loan — and do not need to be repaid. Lenders require gift letters when a buyer receives financial assistance for a down payment.