APPRAISAL
What is it?
An appraisal is an estimate of a home's value completed by a licensed appraiser.
Why does it matter?
When a buyer is getting a mortgage, the lender typically wants to make sure the home is worth the amount being financed. The appraiser considers things like the home's condition, size, location and recent comparable sales.
Simply put:
An appraisal helps determine what the home is worth from a lender's perspective.
CONTINGENCY
What is it?
A contingency is a condition that must be met before a real estate transaction can move forward.
Common examples include:
Financing
Home inspection
Appraisal
Sale of another property
Simply put:
A contingency is an "if this happens, then we can move forward" condition in a contract.
CONTINGENCY
What is it?
A contingency is a condition that must be met before a real estate transaction can move forward.
Common examples include:
Financing
Home inspection
Appraisal
Sale of another property
Simply put:
A contingency is an "if this happens, then we can move forward" condition in a contract.
TITLE SEARCH
What is it?
A title search examines public records to determine who legally owns a property and whether there are any claims, liens or other issues affecting the title.
Why does it matter?
It helps identify potential problems before ownership is transferred.
Simply put:
A title search helps make sure there aren't surprises hiding in the property's ownership history.
INSPECTION
What is it?
A home inspection is an examination of a property's condition by a qualified inspector.
It may look at things such as:
Roof
Foundation
Electrical systems
Plumbing
Heating and cooling
Structural components
Simply put:
An inspection helps a buyer better understand the condition of the home before purchasing.
EARNEST MONEY
What is it?
Earnest money is a deposit a buyer makes when submitting an offer to show they are serious about purchasing the home.
Why does it matter?
The money is generally held in an escrow account and is applied toward the buyer's purchase at closing if the transaction moves forward.
Simply put:
It's a buyer's good-faith deposit.
EQUITY
What is it?
Equity is the portion of your home's value that you actually own.
Example:
If your home is worth $300,000 and you owe $200,000 on your mortgage, you have approximately $100,000 in equity.
Simply put:
Home value minus what you still owe = equity.
CLOSING COSTS
What are they?
Closing costs are the various expenses associated with completing a real estate transaction.
They can include things such as:
Loan-related fees
Title services
Recording fees
Prepaid taxes or insurance
Other transaction expenses
Simply put:
They're the additional costs involved in getting from "offer accepted" to "homeowner."
PRE-APPROVAL
What is it?
A mortgage pre-approval is a lender's preliminary indication of how much a buyer may be able to borrow based on information provided to the lender.
Why does it matter?
It can help buyers understand their potential price range and shows sellers that the buyer has taken steps toward obtaining financing.
Simply put:
Before you shop, know what you may be able to afford.
COMPARABLE SALES (COMPS)
What are they?
Comparable sales, or "comps," are recently sold properties that are similar to the home being evaluated.
Real estate professionals look at factors such as:
Location
Size
Age
Condition
Features
Recent sale prices
Simply put:
Comps help give us an idea of what similar homes are actually selling for.
Listing information is provided by Participants of the MichRIC MLS. IDX information is provided exclusively for personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed. ©: MichRIC MLS. Last Update September 25, 2026 5:05 PM UTC
Northern Great Lakes REALTORS® MLS All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested
in purchasing. The data relating to real estate for sale on this website comes in part from the Internet Data Exchange program of the Multiple Listing Service. Real estate listings held by brokerage firms other than Team Quist may be marked with the Internet Data Exchange logo and detailed information about those properties will include the name of the listing broker(s) when required by the MLS. Copyright ©2026 All rights reserved.
Last Updated: September 25, 2026 5:15 PM UTC
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