Whether you're buying or selling a home in San Diego, understanding real estate terminology is key to a smooth and confident transaction. From pre-approval to escrow, there’s a lot of industry jargon that can feel overwhelming at first. That’s why we’ve broken down the most common real estate terms every buyer and seller should know when navigating the San Diego real estate market.
- Pre-Approval
A lender’s written commitment stating how much you’re qualified to borrow. Buyers in San Diego's competitive market should always get pre-approved before house hunting.
- Contingency
A clause in a real estate contract that allows one party to back out if certain conditions aren’t met—like loan approval, a clean home inspection, or appraisal results.
- Escrow
The period between a signed purchase agreement and the closing date. During escrow, funds and documents are held by a neutral third party until the transaction is finalized.
- Appraisal
An unbiased estimate of a property’s market value. Required by lenders to ensure the home is worth the purchase price—especially important in fast-moving San Diego neighborhoods.
- Closing Costs
Fees paid at the end of the transaction—by buyers, sellers, or both. These can include loan origination fees, title insurance, escrow charges, and taxes.
- Earnest Money Deposit (EMD)
A buyer’s good faith deposit submitted with an offer to show serious intent. It’s held in escrow and applied to the purchase price at closing.
- Title & Title Insurance
The title is the legal document proving ownership of a home. Title insurance protects buyers and lenders against future disputes or claims on the property.
- MLS (Multiple Listing Service)
A database agents use to list and search for properties. San Diego real estate agents rely on the MLS to share listings and find homes that match buyers’ needs.
- Inspection
A professional evaluation of a home’s condition. Common in the San Diego area, especially when buying older homes or properties near the coast where moisture can cause issues.
- Counteroffer
A response to an offer with adjusted terms. This negotiation stage is common, especially in San Diego’s competitive housing market.
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