What does pending mean? Can you ask for repairs on an as-is home? Learn the real meaning behind common Texas real estate terms buyers and sellers hear every day.
Real Estate Language Decoded: 10 Common Phrases Texas REALTORS® Use and What They Really Mean
Real estate professionals use certain phrases every day that seem simple enough—until you're buying or selling a home and suddenly realize everyone around you is speaking a different language.
Whether you're a first-time buyer or a seasoned homeowner, understanding these common real estate phrases can help you navigate the Texas home buying and selling process with confidence.
1. Under Contract
A buyer and seller have agreed to terms and signed a contract.
However, inspections, financing, appraisal, and other contingencies may still need to be satisfied.
What it really means: The home isn't sold yet, but it's on its way.
2. Pending
Many buyers believe pending means sold.
In reality, a pending transaction is generally much further along than a home that is simply under contract. Major contingencies such as inspections, option period negotiations, financing issues, and other contract requirements have typically been addressed.
However, the transaction is not complete until closing documents are signed and the sale is funded.
What it really means: The finish line is in sight, but the race isn't over yet.
3. Multiple Offers
This means more than one buyer has submitted an offer.
What it really means: Competition exists for the property.
4. Highest and Best
The seller is asking buyers to submit their strongest offer terms.
What it really means: Present your best overall package because there may not be another opportunity to negotiate.
5. As-Is
This is one of the most misunderstood phrases in Texas real estate.
Many buyers hear "As-Is" and assume they cannot ask for repairs. That's not necessarily true.
Most Texas contracts are written "As-Is." Buyers often purchase an option period that allows them to inspect the property and negotiate repairs, credits, or other concessions.
Sometimes buyers and sellers even agree to specific repairs before the contract begins. For example, a buyer may love a home but request that a particular wall or feature be repainted before closing. If both parties agree, that repair or update can be written directly into the contract.
An "As-Is" contract generally means the seller is not obligated to make repairs unless they specifically agree to do so.
What it really means: The property is being sold in its current condition unless the buyer and seller negotiate something different.
6. Seller Concessions
Seller concessions are funds the seller contributes toward a buyer's closing costs or allowable expenses.
What it really means: The seller is helping reduce some of the buyer's upfront costs.
7. Price Improvement
This may be the most creative phrase in real estate.
What it really means: The seller reduced the price.
8. Motivated Seller
This phrase can mean many things.
What it really means: The seller may be more willing to consider offers or negotiate terms.
9. Move-In Ready
This term is highly subjective.
What it really means: One buyer's dream home may be another buyer's remodeling project.
10. Property Tax Appraisal vs. Real Estate Appraisal
These are not the same thing.
A property tax appraisal is used by the appraisal district to determine taxes.
A real estate appraisal is completed by a licensed appraiser to estimate market value for a lender and transaction.
What it really means: The value used for taxes and the value used to support a sale are often very different numbers.
Final Thoughts
One of the most important jobs a REALTOR® has is helping buyers and sellers understand the process—not just the paperwork.
The next time you hear phrases like "pending," "as-is," or "highest and best," you'll know exactly what they mean and how they may affect your transaction.
If you're buying or selling in Montgomery, Lake Conroe, DFW, or anywhere in Texas, I'm always happy to answer questions and help translate real estate jargon into plain English.
For all your real estate needs, get Jacque! Serving Montgomery, Lake Conroe, DFW & beyond.