Real Estate Glossary for Erie Homeowners

An independent assessment of a property's market value, required by mortgage lenders. If the appraisal comes in below the offer price, the buyer may need to renegotiate or cover the difference.

A buyer's agent represents the purchaser's interests; a listing agent represents the seller. In Pennsylvania, agents must disclose who they represent at the start of the relationship.

A report comparing your property to recently sold similar homes to determine fair market value. Erie agents use comparable sales data from the Greater Erie Board of Realtors MLS.

Fees and expenses paid at the real estate closing beyond the purchase price. In Pennsylvania, buyers typically pay 2-5% of the purchase price in closing costs; sellers pay 6-10% including agent commissions.

A condition that must be met for a real estate contract to proceed. Common contingencies include home inspection, financing, and appraisal contingencies.

The legal document transferring property ownership. In Pennsylvania, deeds are recorded with the Erie County Recorder of Deeds to establish public record of ownership.

A document where the seller discloses known defects and issues with the property. Pennsylvania law requires sellers to complete a detailed property disclosure form.

A neutral third party that holds funds and documents during the transaction. In PA, escrow also refers to the account your lender uses to pay property taxes and homeowner's insurance.

A deposit made by the buyer to demonstrate serious intent, typically 1-3% of the purchase price. Held in escrow and applied to the purchase at closing.

A thorough examination of a property's condition before purchase. In Erie, inspections commonly reveal issues related to older construction, basement moisture, and roof condition.

An organization in some developments that sets rules and collects fees for maintenance of shared spaces. Common in newer Erie-area subdivisions and condominium complexes.

The database where real estate agents share property listings. The Greater Erie Board of Realtors operates the local MLS used by Erie-area agents.

A lender's conditional commitment to loan you a specific amount based on your financial information. Stronger than pre-qualification and essential in competitive Erie market conditions.

A sale where the property sells for less than the outstanding mortgage balance, requiring lender approval. Less common in strong markets but may apply to distressed Erie properties.

Insurance protecting against claims on property ownership. Pennsylvania buyers typically purchase both lender's and owner's title insurance at closing.

A tax paid when property changes hands. Pennsylvania charges a 2% transfer tax (1% from buyer, 1% from seller) on real estate transactions, with some local additions.