Arizona Real Estate Glossary

Acreage refers to a unit of land area measuring 43,560 square feet. In the context of Arizona real estate terms, this can vary from small residential lots to expansive ranch land. An appraisal, or property appraisal, is a professional estimate of a property's value, which is typically required by lenders to ensure that the loan amount aligns with the property's worth. The term 'As-Is' describes a condition in a contract where the seller does not plan to make any repairs; however, in Arizona, buyers generally retain the right to inspect the property. Additionally, commercial real estate (CRE) encompasses properties specifically used for business purposes.

Due Diligence: This is the crucial 'investigation' period in Arizona real estate terms where a buyer reviews all aspects of a property, including property appraisals, inspections, title reports, and zoning, before committing to the purchase. Earnest Money: This refers to a 'good faith' deposit made by the buyer to demonstrate their seriousness about the transaction. It is held in escrow until closing. Escrow: A neutral third party involved in the transaction process that holds funds and documents to ensure that both the buyer and seller fulfill their contractual obligations, a key concept in real estate definitions.

Fixed-Rate Mortgage: A type of loan, commonly discussed in Arizona real estate terms, where the interest rate remains constant throughout the life of the loan, ensuring a predictable monthly payment. HOA (Homeowners Association): An organization within a subdivision or planned community that establishes and enforces rules for properties and their residents, an important concept in real estate definitions. Land Use: This refers to the legal classification determining how a piece of land can be developed, including categories like Residential, Commercial, and Agricultural, which can affect property appraisal. Listing: A formal agreement that enables a Realtor to represent a seller and market the property effectively.

MLS (Multiple Listing Service): A comprehensive database utilized by Realtors to share information about properties for sale, ensuring your home receives maximum exposure in the competitive Arizona real estate terms. Principal: The actual amount of money borrowed on a loan, distinct from the interest, which is crucial in property appraisal. Raw Land: This refers to land that remains in its natural state, lacking any man-made improvements such as buildings, cleared paths, or utilities, a key concept in real estate definitions.

Title Insurance: This type of insurance safeguards the buyer and lender against any future disputes regarding the legal ownership of the property, an important consideration in Arizona real estate terms. Under Contract: This refers to the stage in real estate transactions where a seller has accepted a buyer’s offer, but the closing has not yet occurred. Zoning: These are local government regulations that determine how real property can and cannot be utilized in specific geographic areas, which is essential for understanding real estate definitions.