Real Estate Terms Every PNW Homebuyer (and Seller) Should Know

Real Estate Terms Every PNW Homebuyer (and Seller) Should Know

If you’re thinking about buying or selling a home here in the Pacific Northwest — whether it’s in Everett, Lynnwood, Bothell, or anywhere in between — understanding a few key real estate terms can make a world of difference. It’s not about memorizing jargon. It’s about feeling informed, confident, and ready to make smart decisions when it matters most.

Think of this as your quick-reference guide to common terms that pop up throughout the real estate process. Knowing these ahead of time can help you avoid surprises and feel more in control when it’s time to sign on the dotted line.

As Redfin puts it:
“Having a basic understanding of important real estate concepts before you start the homebuying process will give you peace of mind now and could save you a fortune in the future.”

Let’s break down a few essentials:

🏡 Appraisal

This is a professional estimate of a home’s value, usually ordered by the lender. Why does it matter? Because banks want to make sure they’re not lending more than the home is worth. If the appraisal comes in low, it can impact your financing — or open the door for negotiations.

📋 Contingencies

These are the “if this, then that” conditions built into your purchase contract. A few examples:

• Home inspection contingency: If major issues are found, you can renegotiate or walk away.

• Financing contingency: If your loan falls through, you’re not stuck buying the home.

Contingencies help protect your interests — especially in competitive markets like Snohomish County — so think carefully before waiving them.

💸 Closing Costs

When you close on a home, there are fees beyond just the purchase price. These can include:

• Title insurance

• Taxes

• Lender fees

• Escrow costs

Ask your lender for a breakdown early on so you know what to expect. It’s usually around 2–5% of the home’s purchase price.

💰 Down Payment

This is the upfront cash you put toward the purchase of your home. It can vary depending on your loan type:

• FHA loans: as low as 3.5%

• VA loans: 0% down (yes, zero!)

• Conventional loans: often 5–20%

Despite the myth, you don’t need 20% down to buy a home. Let’s chat with a lender and see what programs fit your situation best.

🔼 Escalation Clause

In hot markets like ours, this clause can give your offer an edge. It basically says, “If another buyer offers more, I’ll beat them by $X — up to a maximum price.”
It’s a great tool, but it needs to be used wisely. Let’s strategize based on what’s going on in your target neighborhood.

📉 Mortgage Rate

This is the interest rate on your home loan. It plays a big role in your monthly payment — and the overall cost of your home. Rates change often, so it’s smart to check in with a local lender to see what you qualify for.

✅ Pre-Approval Letter

This is one of the first steps in the buying process. A pre-approval shows sellers that you’re serious and ready to go — and it gives you a realistic price range based on your finances. It’s like getting your budget in writing before you hit the open houses.

Bottom Line

Real estate doesn’t have to feel overwhelming. A little knowledge goes a long way — especially when it comes to making one of the biggest decisions of your life.

If there’s a term or phrase you’ve come across that wasn’t on this list, let’s talk! I’m here to answer your questions and help you move forward with clarity and confidence — whether you’re buying your first home, selling your current one, or planning for what’s next.

Let’s connect — and make real estate feel a whole lot simpler.