Basic Real Estate Terms to Know 

Buying and Selling a home can feel intimidating, but it doesn’t need to be! In addition to selecting a great agent, becoming familiar with the following words and terms can help boost your confidence, and your knowledge in the field of Real Estate.  

Appraisal by Market Comparison 

A licensed appraiser provides an estimate of the property’s market value. It is a thorough examination and comparison of actual sales of comparable propertiesBanks use this when making loans to home buyers.  It is also used with refinancing, and for settling estate values upon death.   

Comparable Market Analysis and Comparables 

Often used as a guide for pricing a property, a comparable market analysis is the evaluation of similar properties in the area of the property being sold. “Comparables” are the prices of similar homes that have been bought and sold recentlyYour Realtor will use this process to aid in determining a listing price, or whether a property is correctly priced when offered for sale.  


We think does a great job of explaining equity clearly:  

“[Equity is] the financial value above what is owed on the property. As a loan is paid off equity is built so when the property is sold all proceeds pay off the remaining loan balance and the left over money is equity that goes in the owner’s pocket. 

Closing the Purchase and Sale 

Everyone’s favorite word! This is when the paperwork and processes are no longer pending. Everything has been signed, the deed has been delivered and the property has officially been moved from the seller to the buyer by recordation of the documents and disbursement of the net proceeds. 

Want to know more? We suggest reading about Understanding Temporary Rate Buydowns Next!  

If you're interested in buying or selling a home and would like to work with someone who knows the ins and outs of Maui Real Estate, reach out to one of our experienced Realtors by calling 808.879.3402, or you can reach one of us directly from our website at  Mahalo for choosing us! 

Posted by Kaitlen Conney on


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