Seattle Real Estate Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M

N | O | P | Q | R | S | T | U | V | W | X | Y | Z

What is the glossary? Well, you might hear certain real estate terms bandied about on this site. Some of them are particular to Seattle Real Estate - like "the Eastside". Some of them are just related to real estate in general - like "closing costs" or "escrow".

If you can think of one you're wondering about that we don't have listed, please send us an email to request that we add it to the glossary.

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A [top]

Agency-
When you hear the term agency in real estate, the issue at hand is most likely real estate agency - in other words, who is working for whom in a transaction. You can read more about it at our real estate agency page.

B [top] -

Bank Owned -
The term bank owned most often refers to homes that have been repossessed by the foreclosure process and did not sell to another party at the foreclosure auction. Bank owned homes are often called REO homes which stands for "Real Estate Owned". (We have an interesting series about bank owned properties on our blog, check it out!)

Buyer's Agent -
A Buyer's Agent is a real estate agent that is representing a buyer in their purchase or lease of property. In a transaction, a Buyer's Agent is often referred to as the Selling Agent because they are the agent that, by bringing a buyer, sells the property.

C [top] -

the Cascades -
The Cascades are the mountain range that separate Washington. Interestingly enough - to hear some people talk there are two Washingtons - Western Washington and Eastern Washington! (Not to mention "the other Washington" which is Washington DC.) The topography on either side of the Cascades is vastly different and so is the weather. The mountains are certainly a recreation destination for skiers, hikers, and sightseers. There are three mountain passes most mentioned in the area - travel I-90 from eastern Washington and you'll cross Snoqualmie Pass on your way to Seattle. Stevens Pass is on the north side of the metro, connecting the Seattle ares with the Chelan area courtesy of US Hwy 2. White Pass is on the south end on the way to Yakima. It's common to hear someone in the Seattle metro mention that they are heading to the Pass for the weekend. Locals are often heard to recommend heading over the Pass if you're longing for a change of weather - whether you want to trade cool for hot, rain for snow, or clouds for sun!

Closing Costs -
Both buyers and sellers have closing costs associated with a real estate transaction.

The majority of the buyer's expenses come from the cost of their mortgage - like prepaid interest, appraisal fees, processing fees, mortgage title insurance policy, collection of monies to fund their escrow account, and so forth. There are also some fees associated with the closing of the real estate transaction apart from their mortgage like the escrow company closing fee, prorated taxes, etc. When a buyer is shopping for a mortgage, they should talk to their loan officer about getting a Good Faith Estimate which will detail approximate closing costs.

The sellers big closing costs are commission, title insurance, taxes, plus document prep and recording. When you're considering selling your home, you should talk to your agent about getting an Estimated Seller's Net Proceeds Sheet to estimate how much you'll take away from the closing after your closing costs and mortgage payoff.

Commercial Brokers Association -
The Commercial Brokers Association is essentially the Multiple Listing Service for commercial real estate in our area. Since we're members of CBA, we have enhanced ability to market commercial properties and also search for Seattle commercial real estate for our clients.

Corporate Owned Home -
Used in reference to real estate, the term corporate owned often means one of two things besides the obvious meaning that the property is owned by a company as opposed to an individual. (1) A property owned by a relocation company that performed a "buy out". (2) A sneaky way to refer to a bank owned property without saying "bank owned".

D [top] -

Dual Agent -
A Dual Agent is a real estate agent that represents both a Buyer and a Seller in a transaction. How does that work? In our opinion...it doesn't work very well at all. Luckily, a Dual Agency situation (when one person is trying to represent both parties in a transaction) doesn't come up that often.

How could Dual Agency happen? Here's an example:

Say Alex Agent has Sally Seller's house listed for sale in Kirkland, that means Alex is Sally's Listing Agent.

Then let's say Bob Buyer decides he wants Alex Agent to represent him in his purchase, that means Alex Agent is Bob's Buyer's Agent. Bob Buyer looks around at houses in different areas, and ultimately decides he wants to look at houses in Kirkland and wants to see Sally Seller's house.

Now, since Alex Agent had a relationship with both Sally Seller and Bob Buyer, Alex Agent would need to obtain the permission of both Sally and Bob to be a Dual Agent. That means, if both Sally and Bob agree, Alex can't share confidential information about either Sally or Bob between each other. Alex Agent would try to put a mutually agreeable transaction together for Bob and Sally, showing neither Sally nor Bob any special preference.

What happens if either Bob or Sally says they don't like that idea? Alex Agent can't be a Dual Agent. For Dual Agency to work, it takes two to tango.

Dual Agency can be a tough spot for an agent to be in. It's tough to make sure you're representing two parties equally and fairly. Though, if a seller wants to sell and a buyer wants to buy...you're working towards the same goal and it can work.

E [top] -

the Eastside -
What is "the Eastside"? It depends who you ask. In Seattle real estate, the broadest interpretation of the term generally means the area in King County east of Seattle between Lake Washington and the Cascade Mountains - the eastern suburbs if you will. Depending on the usage, it might mean an even more localized area principally Kirkland, Bellevue, Issaquah and Redmond. Head too far east and the perception you might get (at least from some city dwellers) is that you've wandered into the back of beyond when you get to the other side of Sammamish, Carnation, Fall City and Duvall. The areas on the north side of King County - or North Shore of Lake Washington - Kenmore, Bothell, Woodinville - are sometimes lumped in with the Eastside. Same goes for Renton on the south end, but Renton often ends up being pulled into what's referred to as South King County.

Equal Housing Opportunity -
The Equal Housing Opportunity logo means that we comply with all federal, state and local Fair Housing laws. In other words, we help fight discrimination in housing.

Escrow -
The word escrow is used in several different ways in Seattle real estate:
1. Escrow - The Process - A real estate transaction is said to be "in escrow" when an agreement has been reached between buyer and seller and the process of clearing contingencies and title is underway before closing.
2. Escrow - The Company or Officer - A company is called an Escrow Company if they act as the third party in facilitating a real estate closing. Many companies are Title & Escrow companies - which mean they also have a division that researches, prepares, and issues title insurance policies in addition to having individuals that act as Escrow Officers to facilitate closings. Many attorney's offices have Escrow Officers or conduct real estate closings.
3. Escrow - The Account - An escrow account as it relates to a mortgage is the special account a mortgage company might establish on behalf of a borrower to pay for their taxes and insurance that is collected as part of the borrower's monthly payment but due annually or semi-annually. Many mortgage programs require that you have an escrow account or that your taxes be "escrowed". Some mortgage programs do not require an escrow account and the borrower is responsible for paying taxes and/or insurance premiums separate from their mortgage payment.

F [top] -

Free and Clear -
This is the term used to indicate that a property does not have any mortgages on the property. In other words, the property is completely paid off.

G [top] -

Good Faith Estimate -
A Good Faith Estimate is a must for a home buyer if they are going to be obtaining a mortgage. It is a form that will show you approximate costs for your contemplated mortgage - both what your monthly payment would be, as well as what your closing costs would be with each particular mortgage program. Once you get your Good Faith Estimate, read it! If there are costs you don't understand, ask your mortgage banker to explain it to you. It's not mysterious but it can be confusing. Never sign on the dotted line until you understand the costs and terms associated with your home loan.

H [top] -

HUD-1 Settlement Statement -
Department of Housing and Urban Development settlement statement, or HUD-1 for short, shows your final closing costs in a transaction and is provided by the escrow company at the completion of a purchase or refinance.

I [top] -

I-5-
I-5, "the" 5, or just plain 5 is the main north/south expressway through Seattle itself.

I-90-
I-90, or just plain 90 is a Highway that crosses the state of Washington, through Snoqualmie Pass, over Lake Washington, Mercer Island, and right on into Seattle. It's one of the two floating bridges across Lake Washington (520 is the other one). A traffic choke point in the Seattle metro since it's one a the main paths from the Eastside to downtown Seattle, it's really quite an interesting drive - from the mountains to the Sound as they say. It's also the longest interstate in the country.

I-405-
I-405, "the" 405, or just plain 405 is the main north/south expressway through the east side of the Seattle metro, I-5 runs through Seattle itself. I-405 connects with I-5 on the south side by the airport in the Seatac/Tukwila area and on the north side in Lynnwood.

J [top] -

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K [top] -

King County -
King County is the most heavily populated county in Washington State. It's home to Seattle and most of the metro area - 1.8+ million people. I just learned from Wikipedia's King County page that it is one of the most highly educated counties in the country. Huh. Who knew? http://www.kingcounty.gov/

L [top] -

Lake Sammamish -
Looking at the Seattle metro moving west to east, Lake Sammamish (map) is the third big body of water after Puget Sound and Lake Washington. Considered the Eastside in King County, Washington homes are clustered around its banks. It's long and skinny like Lake Washington - it's much longer north to south than east to west. The city of Redmond is on the north end, Issaquah is on the south, Sammamish on the east and Bellevue on the west. Visit Lake Sammamish State Park or Marymoor Park to take it all in.

Lake Washington -
Lake Washington (map) is the absolutely lovely body of water separating Seattle from the Eastside in King County, Washington. It's the second biggest fresh water mass in the state, after Lake Chelan, and the biggest lake in King County. Long and narrow, you can see from the east side to the west side but from north to south the lake curves and there's stuff in they way...also known as Mercer Island.

Listing Agent -
A Listing Agent is an agent that has an agreement with a property owner to market their listing for sale. In other words, a Listing Agent is an agent that is representing a seller...the seller's agent, not to be confused with the Selling Agent. Listing Agreements can be exclusive (only that agent can market the property and their commission is protected) or non-exclusive. Most residential homes seem to be listed with an exclusive listing agreements.

M [top] -

Master Builders Association -
Master Builders Association of King and Snohomish Counties is the largest local home builders organization in the United States. It's comprised of builder members and associate members. Rion Real Estate is an associate member of Master Builders (often shortened to just MBA). The MBA has a variety of functions among these are education, community service and advocacy for the building and real estate industries. Since we're members, we have access to a wide variety of contacts in the Seattle real estate building and construction community.

Multiple Listing Service or MLS-
A Multiple Listing Service is a group of people that get together to share information. Real estate agents that represent sellers enter information about properties for sale into a searchable web-based system. Agents that represent buyers search the web system to find properties that might meet their clients needs. Many public real estate searches, like our property search, get their information by special agreement from the local MLS. In our case, we have an agreement with NWMLS (Northwest Multiple Listing Service which serves Washington and the Seattle area and of which we are members) that allows us to display certain property information from the MLS database. So, though you're searching MLS data on our site, it's technically not the MLS proper.

N [top] -

Net Sheet -
Often called a Seller's Estimated Net Proceeds Worksheet - or some similar combination of terms - this is a statement that will spell out exactly what costs you need to factor in to your calculations when you sell your home. It will detail your approximate closing costs so you know what will be left after paying fees and closing out your mortgage, if you have one. You should look at a net sheet when you set your price - so there aren't any surprises down the road. Your agent should also update your net sheet upon request when you are considering an offer.

Northshore -
This is a geographic area describing the communities on the north shores of Lake Washington. There is, in fact, a Northshore School District as well but not all areas that are considered "Northshore" in the geographic sense are served by that school district. Like the term Eastside, it's rather loosely defined. Generally it includes Shoreline, Lake Forest Park, Kenmore, and parts of Bothell.

O [top] -

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P [top] -

the Pass -
Shorthand for one of the mountain passes across the Cascade Mountains. In the Seattle metro it most often means Snoqualmie Pass.

Puget Sound -
The Puget Sound (map) is an absolutely breathtaking natural feature in Western Washington. The body of water that separates Seattle from the Olympic Peninsula, it's technically a saltwater bay, but it has lots of inlets, channels and branches - many of which have names of their own. According to Wikipedia, "In 1792 George Vancouver gave the name "Puget's Sound" to the waters south of the Tacoma Narrows, in honor of Peter Puget, then a lieutenant accompanying him on the Vancouver Expedition. The name later came to be used for the waters north of Tacoma Narrows as well." This is why Alex and I jokingly refer to it as Peter's Pond. There is an extensive Washington State ferry system to move passengers and vehicles across it at various points.

Q [top] -

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R [top] -

Realtor -
A Realtor is a real estate agent who belongs to the real estate trade organization, the Association of Realtors. All Realtors are real estate agents, but not all real estate agents are Realtors. As a point of interest, many people incorrectly add an extra syllable to the pronunciation of the word. It is technically Real-tor, not Real-a-tor or Real-i-tor.

REO -
REO, which stands for Real Estate Owned, is another way of referring to a bank owned home.

REET -
REET is the acronym for Real Estate Excise Tax here in Washington State. Real estate excise tax is the tax charged to the seller when a property is transferred. REET made the news in January 2009 when the Department of Revenue announced that they intended to charge the tax on debt forgiven in short sales, they later recanted. At the time of writing, the REET tax rate in Washington state is .0128 or 1.28%, but counties and cities tack their own charges on. In King County, the REET tax rate is 1.78% in most areas. Curious about other WA taxes? Check out our Seattle area information page.

S [top] -

Seattle King County Association of Realtors -
This is the local Realtors organization to which we belong.

Seller's Agent -
See Listing Agent.

Selling Agent -
A Selling Agent is a real estate agent that brings the offer to purchase to a seller. In most cases, Selling Agents are Buyer's Agents. In other words, they represent the buyer that offers to purchase a listed property and do not represent the seller. Though it is possible for the Listing Agent, or Seller's Agent, to be the Selling Agent regardless of whether they represent only the Seller or both the Buyer and the Seller as a Dual Agent.

Short Sale -
A Short Sale is a transaction is one in which the seller at the contemplated price will not have sufficient proceeds to pay off their mortgage. In order for the transaction to be completed, it means that the bank either has to "forgive" the debt or allow the seller to turn the deficit into a personal loan to be paid off after the home has been sold.

Snohomish County -
Snohomish County is north of King County, where Seattle is located. It's home to a number of cities that are still considered within the Seattle metro area. Though it is smaller population-wise than King County, it is still one of the most heavily populated counties in the state. Everett is the biggest city and county seat. http://www1.co.snohomish.wa.us/

Snoqualmie Pass -
Snoqualmie Pass is one of the major passes over the Cascades in the Seattle area via I-90. It's open year-round but there are occasionally advisories. It's a huge skiing destination since it offers the closest slopes to the Seattle metro with Alpental, Summit West (formerly named Snoqualmie Summit), Summit Central (formerly Ski Acres), and Summit East (formerly Hyak).

T [top] -

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U [top] -

U "Dub" -
This is slang for UW, University of Washington. Leave it to those educated King County folks to come up with such a winner. Points for being fun to say though...

V [top] -

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W [top] -

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X [top] -

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Y [top] -

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Z [top] -

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