If you are selling your home FSBO or listing on the MLS, you are likely to have some close encounters with first-time homebuyers while marketing your home. There are a number of terms that are unfamiliar to first-time homebuyers and the more informed and knowledgeable you are as a seller, the more helpful you are to your buyer.

Here are some terms that both buyers and sellers should be familiar with:

Closing costs: The expenses that buyers and sellers normally incur in a real estate transaction. Closing costs are in addition to the price of the house and usually add up to between 5% and 6% of the mortgage amount.

Conventional Loan: A mortgage that is not insured by the Federal Housing Administration or guaranteed by Veteran Affairs.

Origination Fee: The fee charged by a lender to prepare all documents associated with your mortgage.

Escrow: A special third-party account that is set up by the lender until all conditions of the purchase contract have been met.

Title Search: An examiniation of public records to ensure that you are purchasing the property from its legal owner and that there are no liens, overdue assessments or other claims that would affect the value or marketability of the property.

Deed: A legal document by which the ownership of property is transferred from one owner to another.

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