A tax-deferred strategy allowing an investor to sell one investment property and reinvest the proceeds into another like-kind property while deferring capital gains taxes under IRS rules and timelines.
0-9
A
A metric that measures how quickly available homes are selling in a given market over a specific period. It helps determine whether conditions favor buyers or sellers.
A provision in a mortgage that allows the lender to require full repayment of the loan balance if the borrower defaults on the agreed terms.
A mortgage loan with an interest rate that adjusts periodically based on a specific financial index plus a margin set by the lender.
The scheduled interval at which an ARM interest rate may change, typically every six months or annually after the initial fixed-rate period ends.
A sworn statement from the seller confirming legal ownership and that there are no undisclosed liens, judgments, or claims against the property.
The systematic repayment of a loan through regular installments that include both principal and interest over the life of the loan.
A detailed table showing how each mortgage payment is divided between principal and interest over the full term of the loan.
The total yearly cost of borrowing, including interest and certain lender fees, expressed as a percentage. APR provides a more complete picture of loan cost than the interest rate alone.
An independent professional opinion of a property’s fair market value, typically required by lenders before finalizing a mortgage.
A contract clause allowing the buyer to renegotiate or cancel the purchase if the property appraises below the agreed-upon purchase price.
The value assigned to a property by a licensed appraiser based on comparable sales, property condition, and local market conditions.
An increase in property value due to market demand, improvements, or favorable economic factors. Northern Kentucky has seen steady appreciation in recent years.
Limits on how much an adjustable-rate mortgage can increase at the first adjustment, subsequent adjustments, and over the life of the loan.
A property being sold in its present condition without the seller making repairs. Buyers may still inspect, but the seller is not obligated to fix issues discovered.
The value assigned by a local government for property tax purposes. In Kentucky, properties are assessed at 100% of fair market value by the county Property Valuation Administrator.
An agreement allowing a buyer to take over the seller’s existing mortgage, subject to lender approval. This can be advantageous when the existing loan has a lower interest rate than current market rates.
B
A secondary offer that becomes binding if the primary contract falls through. Having a backup offer in place gives the seller security and the backup buyer a position in line.
A loan with lower monthly payments for a set period followed by a large lump-sum payment of the remaining balance due at the end of the term.
Short-term financing used to purchase a new home before the current one sells. Bridge loans help buyers avoid missing out on a property while waiting for their existing home to close.
A licensed real estate professional who represents the buyer’s interests in a transaction, helping find properties, negotiate offers, and navigate the closing process.
A market condition where housing supply exceeds demand, giving buyers more negotiating power. Indicators include rising inventory, longer days on market, and price reductions.
C
A tax on the profit realized from the sale of an asset, including real estate. Homeowners may exclude up to $250,000 (single) or $500,000 (married) in gains if the home was a primary residence for at least two of the past five years.
Refinancing a mortgage for more than the remaining balance and receiving the difference in cash, often used for home improvements or debt consolidation.
A municipal document confirming that a property meets building codes and is safe to inhabit. Often required for new construction or major renovations before the buyer can move in.
The historical record of ownership transfers for a property, documented through public records. A clear chain of title is required for a valid sale.
Ownership free of liens, disputes, or legal questions. A clear title is required before a property can change hands at closing.
The final underwriting approval indicating that all loan conditions have been met and the mortgage is ready to fund. This is the last major milestone before closing day.
The final step in a real estate transaction where ownership is transferred from seller to buyer. All documents are signed, funds are disbursed, and the deed is recorded with the county.
Fees and expenses beyond the purchase price paid at settlement, including lender fees, title insurance, recording fees, and prepaid taxes. In Northern Kentucky, expect 2–5% of the purchase price.
A federally required five-page document outlining final loan terms, monthly payment, and all closing costs. Lenders must provide this at least three business days before closing.
Property pledged as security for repayment of a loan. In a mortgage, the home itself serves as collateral for the lender.
A lender’s written confirmation outlining approved loan terms, conditions, and the amount the borrower qualifies for.
The fee paid to real estate agents for their services in facilitating a transaction, typically calculated as a percentage of the sale price and negotiated in the listing agreement.
A valuation report prepared by a real estate agent comparing a property to recently sold similar properties in the area to estimate its current market value.
A negotiated benefit offered by one party to facilitate a transaction, often in the form of closing cost assistance from the seller to the buyer.
A form of ownership where an individual owns a unit within a larger complex and shares ownership of common areas such as lobbies, pools, and parking structures.
A condition that must be satisfied for a real estate contract to remain valid. Common contingencies include financing, inspection, and appraisal.
An offer that depends on specific conditions being met, such as the buyer obtaining financing or selling their current home, before the contract becomes fully binding.
A mortgage not insured or guaranteed by a government agency such as FHA, VA, or USDA. Conventional loans typically require higher credit scores and down payments but offer more flexibility.
A response to an offer proposing revised terms instead of outright acceptance. Counteroffers are common in negotiations and keep the transaction alive until both parties agree.
A numerical representation of a borrower’s creditworthiness, ranging from 300 to 850. Higher scores generally qualify for better mortgage rates and terms.
The visual attractiveness of a property as seen from the street. Strong curb appeal can increase buyer interest and contribute to a higher sale price.
D
The number of days a property has been actively listed for sale on the MLS. High DOM can indicate overpricing or low demand; low DOM typically signals a competitive market.
The percentage of gross monthly income used to pay recurring debt obligations. Most lenders prefer a DTI below 43% for mortgage approval.
The legal document transferring ownership of real property from one party to another. In Kentucky, deeds are recorded with the county clerk’s office.
A security instrument involving a borrower, lender, and trustee used in some states instead of a traditional mortgage. Kentucky recognizes both deeds of trust and mortgages.
Failure to meet the terms of a loan agreement, most commonly by missing mortgage payments. Prolonged default can lead to foreclosure proceedings.
A decline in property value due to wear, age, market conditions, or negative changes in the surrounding area.
The initial portion of the purchase price paid upfront by the buyer. Conventional loans typically require 5–20% down, while FHA loans may accept as little as 3.5%.
When one real estate professional or brokerage represents both buyer and seller in the same transaction. Kentucky law requires written disclosure and informed consent from both parties.
E
A deposit made by the buyer to demonstrate serious intent to purchase a property. Typically 1–2% of the purchase price in Northern Kentucky, held in escrow until closing.
A legal right allowing limited use of another person’s property for a specific purpose, such as a utility company accessing power lines or a neighbor using a shared driveway.
Any claim, lien, or restriction affecting property ownership or use. Common encumbrances include mortgages, easements, and HOA covenants.
The difference between a property’s current market value and the outstanding mortgage balance. Equity increases as you pay down the loan and as the property appreciates.
Funds or documents held by a neutral third party until contractual obligations are met. Escrow protects both buyer and seller during the transaction process.
An account maintained by the mortgage servicer to hold funds for property taxes and homeowner’s insurance, collected as part of the monthly mortgage payment.
A listing agreement where one brokerage has the sole right to market and sell a property for a specified period. The most common type used in residential real estate.
F
A federal law prohibiting discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. Kentucky’s civil rights act provides additional protections.
A government-backed mortgage insured by the Federal Housing Administration. FHA loans feature lower down payment requirements (3.5%) and more flexible credit standards, making them popular with first-time buyers.
A mortgage with an interest rate that remains constant throughout the entire loan term. The most common options are 15-year and 30-year fixed-rate mortgages.
Personal property that has been permanently attached to the home or land and is included in the sale. Examples include built-in shelving, ceiling fans, and light fixtures.
An area designated by FEMA as having a higher risk of flooding. Properties in a flood zone typically require separate flood insurance in addition to standard homeowner’s coverage.
A temporary reduction or suspension of mortgage payments granted by the lender due to financial hardship. The missed payments must eventually be repaid under agreed terms.
The legal process by which a lender takes possession of a property after the borrower defaults on the mortgage. Kentucky allows both judicial and non-judicial foreclosure.
G
H
The portion of a home’s value owned outright by the homeowner, calculated as the market value minus any outstanding mortgage balance.
A revolving line of credit secured by the equity in a home. HELOCs allow homeowners to borrow as needed up to a set limit, often used for renovations or debt consolidation.
A professional evaluation of a home’s structure and major systems including roof, plumbing, electrical, HVAC, and foundation. In Northern Kentucky, inspections typically cost $350–$550.
A service contract that covers repair or replacement of major home systems and appliances for a set period, usually one year. Often provided by sellers as a buyer incentive.
An organization that manages and enforces rules, covenants, and restrictions in a planned community or condominium complex. HOAs collect regular dues from homeowners.
I
A contract clause allowing the buyer to have the property professionally inspected and to negotiate repairs, request credits, or withdraw based on the findings.
The percentage charged by a lender for borrowing money, applied to the outstanding mortgage balance. Rates vary based on market conditions, loan type, credit score, and down payment.
Real estate purchased primarily to generate income through rental revenue or resale profit rather than serve as the owner’s primary residence.
J
A form of property ownership where two or more people share equal ownership and the right of survivorship. When one owner dies, their share automatically passes to the surviving owner(s).
A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency. Jumbo loans typically require larger down payments, higher credit scores, and may carry slightly higher interest rates.
K
Kentucky’s state housing finance agency offering affordable mortgage programs, down payment assistance, and homebuyer education for qualifying Kentucky residents. A valuable resource for first-time buyers in Northern Kentucky.
L
A legal claim against property as security for a debt. Common liens include mortgages, tax liens, and mechanic’s liens. All liens must be satisfied before a clear title can transfer.
A contract between a seller and a brokerage authorizing the agent to market and sell the property for a specified period, detailing the commission rate, listing price, and marketing plan.
The price at which a property is offered for sale on the open market. Also called the asking price, it is determined by the seller in consultation with their listing agent.
A standardized three-page document that lenders must provide within three business days of receiving a mortgage application, outlining estimated interest rates, monthly payments, and closing costs.
The percentage of a property’s appraised value financed by a mortgage loan. An LTV above 80% typically requires private mortgage insurance (PMI).
A lender’s guarantee of a specific interest rate for a set period, protecting the borrower from rate increases while the loan is being processed before closing.
M
A home built in a factory to federal HUD code standards and transported to its site. Different from modular homes, which are built to local building codes.
The price a willing buyer would pay a willing seller in an open market with neither party under pressure, based on current conditions and comparable sales data.
A loan secured by real property, where the home itself serves as collateral. The borrower repays the loan over a set term, typically 15 or 30 years, with interest.
Insurance protecting the lender against loss when a buyer makes a down payment of less than 20%. PMI is typically added to the monthly mortgage payment and can be removed once sufficient equity is reached.
A cooperative database used by licensed real estate professionals to share property listings and facilitate transactions. The MLS serving Northern Kentucky is part of the regional Spark/flexmls system.
N
The amount a seller receives after all closing costs, agent commissions, and outstanding mortgage balances are deducted from the sale price.
O
A written proposal from a buyer to purchase a property at a specific price and under stated terms. An offer becomes a binding contract once accepted and signed by both parties.
A scheduled period during which a property is open for prospective buyers to tour without a private appointment. Open houses are a common marketing tool for listed homes.
A transaction in which the property seller provides financing directly to the buyer instead of requiring a bank mortgage. Terms are negotiated between the parties.
P
A listing status indicating that the seller has accepted an offer and the transaction is under contract, but closing has not yet occurred.
An acronym for Principal, Interest, Taxes, and Insurance — the four primary components of a monthly mortgage payment.
Upfront fees paid to a lender at closing to reduce the mortgage interest rate. One point equals 1% of the loan amount and typically lowers the rate by about 0.25%.
A lender’s conditional commitment to provide financing after reviewing income, assets, credit, and debt documentation. Pre-approval carries more weight than pre-qualification with sellers.
A fee charged by some lenders for paying off a mortgage loan earlier than the agreed term. Many modern loan programs do not include prepayment penalties.
The original amount borrowed on a mortgage loan, excluding interest. Each monthly payment reduces the principal balance owed.
A document in which the seller outlines known defects or material issues with the property. Kentucky law requires a Seller’s Disclosure of Property Condition form for most residential sales.
The formal contract between buyer and seller that outlines the price, terms, contingencies, and timeline for a real estate transaction. Also called a sales contract.
Q
R
A naturally occurring radioactive gas that can accumulate in homes, particularly in basements and lower levels. Radon testing is a common part of the home inspection process in Northern Kentucky.
A limit on how much an adjustable mortgage interest rate may increase at each adjustment period and over the life of the loan.
Replacing an existing mortgage with a new loan, typically to obtain a lower interest rate, change the loan term, or access home equity through a cash-out refinance.
Property owned by a lender or bank following an unsuccessful foreclosure auction. REO properties are typically sold as-is on the open market.
A contractual right that gives a party the first opportunity to match any outside offer before the property can be sold to another buyer.
S
A market condition where housing demand exceeds supply, giving sellers more negotiating power. Indicators include low inventory, multiple offers, and homes selling above asking price.
A sale in which the lender agrees to accept less than the total amount owed on the mortgage. Short sales require lender approval and typically take longer to close.
A tract of land divided into individual lots for home construction, often governed by an HOA with shared amenities, architectural standards, and community rules.
A professional measurement and mapping of property boundaries, structures, and easements. Surveys confirm the exact size and legal boundaries of a parcel of land.
T
Legal ownership of real property, including the right to possess, use, and transfer the property. Title is documented through a deed.
A firm that researches the ownership history of a property, issues title insurance, and often serves as the closing agent for real estate transactions.
Insurance protecting the buyer and lender against financial loss from defects in ownership history, undisclosed liens, or errors in public records.
An examination of public records to verify the current owner, confirm legal descriptions, and identify any liens, encumbrances, or claims against the property.
A tax imposed by state or local government when property ownership changes hands. Transfer tax rates vary by jurisdiction in Kentucky.
U
The lender’s process of evaluating a borrower’s creditworthiness, income, assets, and the property’s value to determine loan approval and risk level.
A government-backed mortgage for eligible buyers in designated rural and suburban areas, offering zero down payment and competitive interest rates. Parts of Northern Kentucky qualify for USDA financing.
V
W
The buyer’s final inspection of the property, usually conducted 24–48 hours before closing, to confirm that agreed-upon repairs have been completed and the home is in expected condition.
A deed in which the seller guarantees clear title and the legal right to sell the property. This provides the buyer with the highest level of title protection.
Z
No matching terms found
Try a different search or .