What is a seller's market?
A seller's market means demand is outpacing supply, more buyers looking than homes available. Sellers tend to have leverage: homes sell faster, often closer to (or above) asking price, with fewer concessions expected.
The Reed
That every homeowner should know.
A seller's market means demand is outpacing supply, more buyers looking than homes available. Sellers tend to have leverage: homes sell faster, often closer to (or above) asking price, with fewer concessions expected.
The reverse. More homes available than buyers actively looking. Buyers have more room to negotiate, more time to decide, and more leverage on price and terms.
Neither side has a strong upper hand. Supply and demand are roughly in step, and pricing tends to be more predictable for both buyers and sellers.
Active means the home is genuinely available and being shown. Under Contract usually means an offer has been accepted but the deal still has contingencies to clear (inspection, financing, appraisal). Pending typically means those contingencies have cleared and it's just waiting on closing. Exact usage can vary slightly by MLS, but that's the general order.
A condition that has to be met for a sale to actually go through, common ones include the home passing inspection, the buyer securing financing, or the appraisal coming in at or above the sale price. If a contingency isn't satisfied, it can give either side a way out of the contract, depending on how it's written.
Honestly, most homeowners don't need to track everything. The handful that matter most are: what similar homes are actually selling for, how fast homes in your area are moving, and whether that pace is speeding up or slowing down. Everything else is mostly useful context.
Average adds up every sale price and divides by the number of sales, which means one unusually expensive (or cheap) home can skew the whole number. Median is the exact middle value when all sales are lined up in order, one outlier can't drag it around. In real estate, median is almost always the more honest number for understanding what a "typical" home is actually selling for.
The number of days a home sits actively listed before going under contract. It's one of the clearest signals of how hot or cool a market is right now.
These two terms are used interchangeably, they mean the same thing. It's an estimate of how long it would take to sell every home currently on the market, at the current pace of sales, if no new listings were added. Lower numbers favor sellers, higher numbers favor buyers.
The rate at which available homes are being sold, essentially the flip side of months of supply. A high absorption rate means inventory is moving fast.
It's the final sale price compared to what the home was originally listed for, shown as a percentage. A number close to (or over) 100% suggests homes are selling near or above asking. A lower number suggests more room for negotiation.
It's often the first thing a buyer's agent points out. A home that's been sitting a while can invite lowball offers, fair or not, simply because buyers assume something's wrong. Pricing right from the start usually matters more than almost anything else you control.
Once a year is a reasonable baseline for most homeowners, just to stay oriented. If you're seriously considering a move in the next 12-18 months, checking every few months makes more sense so you're not caught off guard by how much things have shifted.
Automated estimates are built from public data and algorithms, they don't know your home has a renovated kitchen, a leaking roof, or sits on a quieter street than the one two blocks over. A CMA (Comparative Market Analysis) is built by an actual person looking at real, comparable sales and the specific details of your home. Online estimates are a decent starting point, not a substitute.
A written estimate of what a home is likely to sell for, prepared by a licensed real estate broker or agent. A BPO looks at recent comparable sales, the homes it would be competing with right now, and the property's condition and location, then gives a supported price range and the reasoning behind it. Lenders rely on BPOs during short sales and foreclosures. Attorneys and personal representatives often use them as a starting point in probate, divorce, and other court-supervised sales, when everyone involved needs a documented basis for the asking price. A BPO is not an appraisal. When a court, lender, or tax matter requires a certified value, a licensed appraiser provides it. In many situations, though, a BPO is the faster first step that tells you where you stand before you decide what comes next.
CMA (Comparative Market Analysis): A pricing snapshot a real estate agent prepares to help a seller choose a list price. It's usually informal and focused on marketing strategy. BPO (Broker Price Opinion): A more formal, documented opinion of value. It's often requested by lenders, attorneys, or estates that need written support for a price. Appraisal: A certified valuation by a state-licensed appraiser. Lenders require it for mortgages, and courts or the IRS may require it for official purposes.
A Comparative Market Analysis. It's a report comparing your home to genuinely similar, recently sold properties nearby, adjusted for differences like size, condition, and upgrades, to arrive at a realistic price range.
Short for "comparable," a recently sold home similar enough in size, location, and condition to yours that it's genuinely useful for estimating your home's value.
Market value is what a buyer would actually pay today. Tax-assessed value is what your county uses to calculate property taxes, and it's often set on its own schedule, sometimes well behind or ahead of actual market conditions. The two numbers can differ significantly and both are normal.
Equity is your home's current market value minus whatever you still owe on it. The tricky part is the first half of that equation, since your home's actual current value isn't a fixed number, it moves with the market. That's really the starting point for figuring out equity accurately.
The portion of your home you actually own outright, the gap between what it's worth and what you still owe.
A few common types: a purchase appraisal (for a buyer's lender), a refinance appraisal, and sometimes a private appraisal a homeowner orders independently for their own planning purposes. Each serves a different purpose even though the process looks similar.
The difference between a home's appraised value and the agreed purchase price when the appraisal comes in lower than the contract price. Buyers can cover this gap in cash, renegotiate the price with the seller, or in some cases challenge the appraisal, but the loan amount is based on the lower of the two figures.
Appraisals are performed by independently licensed, state-certified appraisers, not by real estate agents, and their job is to form an unbiased opinion of value based on established standards. Like any professional judgment, results can vary appraiser to appraiser, which is part of why the process includes review steps. If you have specific concerns about an appraisal outcome, that's a conversation worth having directly with your lender or a licensed appraiser.
Generally, standard square footage counts finished, heated and cooled living space, garages typically aren't included unless they've been fully finished and converted into livable space. Measurement standards can vary by who's doing the measuring, so if you have a specific question about your home, that's worth confirming directly.
The legal document that actually transfers ownership of a property from seller to buyer. It's recorded with the county and becomes the official record of who owns what.
A legal claim against a property, usually tied to a debt, that has to be resolved (typically paid off) before that property can be sold with clear title. Liens can come from a mortgage, unpaid contractor work, taxes, and other sources.
Your legal right to own and use a property. "Clear title" means there's nothing, like an unresolved lien or ownership dispute, standing in the way of that ownership being fully yours.
A policy protecting a home and its contents against damage, theft, and loss. If there's an active mortgage, the lender requires homeowners insurance as a condition of the loan — letting a policy lapse can violate the mortgage agreement, separate from missed payments themselves.
A reduction in property taxes available to Georgia homeowners on their primary residence. It can meaningfully lower the annual tax bill, and it's often overlooked by new homeowners or those who've recently inherited a property. Homeowners typically apply through their county tax assessor's office, and the exemption doesn't automatically transfer when ownership changes.
An organization that manages and enforces rules for a community, funded through mandatory dues. HOA obligations, including unpaid dues, can sometimes carry over during a sale, so it's worth understanding before buying or selling in an HOA community. Buyers should request the HOA's bylaws, financials, and any pending litigation before closing.
The formal legal term for property tax in Georgia, meaning a tax based on the assessed value of the property. This is the exact language used in Georgia foreclosure and legal notices, so it's worth recognizing even though "property tax" is the everyday phrase.
A one-time policy purchased at closing that protects against past ownership problems, like undisclosed liens, forged signatures, or errors in public records, that could otherwise threaten your ownership later. This is different from homeowners insurance, which covers future physical damage rather than past title defects.
A licensed inspector's evaluation of a property's condition, covering major systems like the roof, foundation, plumbing, electrical, and HVAC. This typically happens during a buyer's due diligence period and gives them the chance to negotiate repairs, a credit, or in some cases walk away from the contract entirely.
A professional measurement of a property's boundaries, structures, and any easements or encroachments, prepared by a licensed surveyor. Lenders and title companies often require a survey to confirm exactly what's being financed and insured, and it can reveal boundary disputes before they become a problem after closing.
A final visit to the property, usually within a day or two of closing, to confirm it's in the agreed-upon condition and that any negotiated repairs were completed. This is the buyer's last chance to catch a problem before ownership officially changes hands.
Short for heating, ventilation, and air conditioning, the system responsible for a home's climate control. HVAC systems typically last 15 to 20 years, and their age and condition are a common negotiating point during inspections, since replacement can run several thousand dollars.
An on-site wastewater treatment system used in areas without access to municipal sewer lines, common throughout much of rural North Georgia. Septic systems need periodic pumping and inspection, and buyers should always confirm a system's age, capacity, and maintenance history before closing on a home that has one.
A private water supply drawn from a well rather than a municipal water system, also common in rural parts of North Georgia. Buyers financing a home on well water often need a water quality test and, depending on the loan type, proof the well meets minimum flow and safety standards.
Foreclosure is the legal process a lender uses to take back a property when the homeowner has stopped making payments. In Georgia, this ends with the property being sold at a public sale, often on the courthouse steps, on the first Tuesday of the month.
Pre-foreclosure is the period after a homeowner has missed payments and the lender has started the legal process, but before the property has actually been sold. In Georgia, this window is often just a matter of weeks, and it's the stage where a homeowner still has the most options.
This is the official legal notice Georgia law requires before a foreclosure sale can happen. It's published in the county's legal newspaper for four weeks in a row before the sale date, and it includes the property address, the sale date, and contact information for the lender.
A short sale is when a home is sold for less than what's owed on the mortgage, with the lender's approval. It lets a homeowner exit a difficult situation with less damage to their credit than a completed foreclosure, and often with dignity intact.
Forbearance is a temporary agreement with the lender to pause or reduce mortgage payments for a set period, usually because of a hardship. It doesn't erase what's owed, but it buys time to get back on track.
A loan modification permanently changes the terms of a mortgage — the interest rate, the length of the loan, or sometimes the balance — to make payments more affordable going forward.
This is when a homeowner voluntarily transfers ownership of the property back to the lender to avoid going through the full foreclosure process. It can be less damaging to credit than a completed foreclosure, though it's not available in every situation.
A hardship letter explains, in the homeowner's own words, the circumstances that led to missed payments — job loss, medical bills, divorce, and similar situations. Lenders often require one before considering a loan modification or forbearance.
Yes. In many cases, selling before the sale date, whether through a short sale or a standard sale if there's equity, is one of the strongest options a homeowner has. It's usually faster to arrange than people expect.
Loss mitigation is the department at a mortgage servicer responsible for working with homeowners facing default, exploring options like modification, forbearance, or repayment plans before foreclosure becomes final.
Broadly: the Federal Reserve's monetary policy, inflation trends, the broader bond market, and each borrower's individual financial picture (credit score, down payment, loan type). Rates move for a lot of reasons at once, which is part of why they're genuinely hard to predict with any confidence.
The actual amount of money you borrowed to buy the home, not counting interest. Each mortgage payment splits between principal (paying down what you actually owe) and interest (the cost of borrowing). Early in a loan, more of each payment tends to go toward interest, that balance shifts over time.
A dedicated account your mortgage lender manages on your behalf to collect and pay your property taxes and homeowners insurance, usually built into your monthly payment so those larger annual or semi-annual bills don't catch you off guard.
The total amount needed to fully satisfy a mortgage, including remaining principal, accrued interest, and any fees. This differs from your everyday statement balance, since a payoff amount is only valid through a specific date, usually 10 to 15 days out, after which the figure needs to be recalculated for closing.
The amount of principal still owed on a loan at a given point in time, not including interest that will accrue before it's paid. This is typically what shows on a monthly statement, and it's different from a payoff amount, which adds in accrued interest and fees to reflect the true cost of paying the loan off entirely.
The yearly cost of a loan, including the interest rate plus most lender fees, expressed as a single percentage. It gives a fuller picture of a loan's true cost than the interest rate alone, which makes it useful for comparing offers.
The portion of a home's price paid upfront in cash, rather than financed. A larger down payment typically means a smaller loan, lower monthly payments, and sometimes a better interest rate. Down payments commonly range from 3 to 20 percent depending on the loan program, and putting down less than 20 percent on a conventional loan usually means paying PMI.
Pre-qualification is an informal estimate based on information you provide. Pre-approval is a formal process where a lender verifies your documents and commits, in writing, to a specific loan amount. Sellers take pre-approval far more seriously, especially in a competitive market, since it shows a lender has already verified income, credit, and assets.
Insurance, usually required on conventional loans with less than 20 percent down, that protects the lender if the borrower defaults. It's an added monthly cost that can often be removed once enough equity has built up, typically once the loan balance drops below 80 percent of the home's original value or purchase price.
The lender in a mortgage loan, meaning the party who holds the loan and has a legal claim against the property until it's paid off. This term shows up on loan documents and title paperwork, though most people simply call this party "the bank" or "the lender."
The borrower in a mortgage loan, meaning the homeowner who pledges the property as collateral in exchange for the loan. If you have a mortgage, you're the mortgagor, and the mortgagee is whoever holds your loan, which might not be who you send payments to if your loan gets sold or serviced elsewhere.
The fees and expenses paid at closing beyond the purchase price, typically including lender fees, title insurance, appraisal, attorney fees, and prepaid items like property taxes and insurance. Buyers usually pay two to five percent of the loan amount, though sellers can sometimes agree to cover part of this as a negotiating point.
A deposit a buyer puts down when making an offer, showing they're serious about the purchase. It's held in escrow and typically applied toward the down payment or closing costs at closing, though a buyer can lose it if they back out of the contract outside their agreed contingency periods.
A percentage lenders use to measure how much of your monthly income already goes toward debt payments, including the new mortgage payment. Most lenders want this ratio under 43 to 45 percent, and a lower DTI generally means qualifying for a larger loan amount or a better interest rate.
The four components that typically make up a monthly mortgage payment: the loan principal, the interest charged on that loan, property taxes, and homeowners insurance, both usually collected through escrow. Lenders calculate affordability based on total PITI, not just the loan amount, which is why taxes and insurance matter as much as the interest rate.
The process a lender uses to verify a borrower's income, assets, credit, and the property itself before approving a loan. This is where documentation gets checked line by line, and it's why buyers are told not to change jobs, open new credit, or make large deposits during this window.
The way a loan is paid down over time through fixed payments that are split between principal and interest. Early in the loan, more of each payment goes toward interest, and that balance gradually shifts, so equity builds slowly at first and picks up speed in later years.
A fixed-rate mortgage keeps the same interest rate for the entire loan term, so payments stay predictable. An adjustable-rate mortgage, or ARM, starts with a lower rate for a set period, then adjusts periodically based on market conditions, which can mean lower initial payments but less certainty down the road.
Every Realtor is a real estate agent, but not every agent is a Realtor, a Realtor specifically belongs to the National Association of Realtors and agrees to follow its Code of Ethics. A broker has completed additional licensing beyond an agent and can operate independently or oversee other agents. In everyday conversation people often use these terms loosely, but there are real, meaningful differences.
This page is educational information only and isn't legal, financial, tax, or appraisal advice. For guidance specific to your situation, consult a licensed professional.