Decoding Real Estate Phrases: What Your Agent is Saying and What it Means

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When you decide to buy a home, it can be a little overwhelming. First, examining your finances with the intention to make one of the most significant purchases of your life is anxiety-producing. Then, there are all of the formal real estate phrases that are used when going through the home selling or buying process. 

From “escrow” to “contingencies” and “CMA,” your real estate agent likely uses a lot of industry-specific jargon. Some of which is second nature to them but potentially confusing to you. Whether you’re buying your first home or selling your tenth, understanding the terms your agent uses can help you feel more confident and in control throughout the process.

Here’s a breakdown of common real estate phrases your agent might say—and what they actually mean.

“I Have a Fiduciary Responsibility to You”

Translation: “I’m legally and ethically required to act in your best interest at all times.”

Fiduciary responsibility means the agent must prioritize your needs above all else—including our own.

This includes loyalty, confidentiality, full disclosure, and exercising care throughout the transaction. It’s more than just good service—it’s a legal duty to protect you and help you make informed decisions every step of the way.

“Let’s Schedule a CMA” (Comparative Market Analysis)

Translation: “I’ll research what similar homes in your area have sold for to help us set the right price.”

A Comparative Market Analysis, or CMA, helps your agent determine your home’s value in the current market. It involves reviewing recent sales of similar properties (also called “comps”) in your neighborhood, considering size, features, and condition.

If you’re buying, the CMA real estate phrase helps you decide how much to offer. If you’re selling, this will help price your home competitively. The most important thing when putting your home for sale on the market is pricing your home. 

“The Home is in Escrow”

Translation: “The seller has accepted an offer, and now the sale is going through legal and financial checks before closing.”

Escrow is a neutral third party that holds funds and documents while the buyer and seller complete the steps necessary to finalize the deal.

It is required in the state of Washington that all real estate transactions utilize escrow to prevent any mishandling of funds. During this time, the buyer may conduct inspections, finalize their loan, and ensure the title is clear. Once all conditions are met, escrow closes, and ownership officially transfers.

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“It’s a Seller’s Market”

Translation: “There are more buyers than homes for sale, so sellers have the upper hand.”

In a seller’s market, demand outweighs supply, often leading to multiple offers, bidding wars, and homes selling quickly—sometimes above asking price. As a buyer, you may need to act fast and come in strong with your offer. As a seller, it’s a great time to list your home.  We saw the most significant sellers market between 2020-2022, driven by pandemic dynamics and low interest rates. 

“This Home is Pending”

Translation: “The seller accepted an offer, and they’re working through the final steps to close the deal.”

When a home listed as “pending” is no longer actively for sale on the market. All parties have agreed to the offer, inspections have been completed (if requested), conditions of the contract have been met, and both parties are just waiting for final paperwork or financing to go through.

It’s one step away from being officially sold. Woohoo! 

“Let’s Talk Contingencies”

Translation: “What conditions do we need to include in the contract to protect you?”

Contingencies are clauses in a purchase agreement that allows a buyer or seller to back out of the deal under specific circumstances. Many contingencies like home inspection, financing contingencies, and appraisal contingencies lean to protect the buyer. This real estate phrase will allow the buyer to back out of the contract and get their escrow deposit returned without penalty.

Contingencies that favor the sellers, like an “As-Is Clause,” which states the home is being sold in its current condition and very likely priced accordingly. 

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“This Home Has Great Bones”

Translation: “It might need cosmetic updates, but the structure is solid.”

When an agent says a home has “great bones,” they’re typically referring to the foundation, framing, and overall layout. Cosmetic changes like paint or outdated kitchens are easier (and cheaper) to fix than major structural issues.

Oftentimes, if the home has 80-90% of what you’re looking for, it might be more budget-friendly to call in a contractor than to find that home with everything you need. 

“Let’s Get You Pre-Approved”

Translation: “Talk to a lender to find out how much you can borrow before house hunting.”

What you can pay in rent can be different from what you will be paying in a mortgage. Getting pre-approved means a lender has reviewed your financials and conditionally agreed to loan you a specific amount. It shows sellers you’re serious and financially capable, making your offer stronger, especially in a competitive market.

Your time is valuable, so if you find the perfect house, being pre-approved is one step closer to achieving your real estate goals. 

“We Should Write a Clean Offer”

Translation: “Let’s submit an offer with minimal contingencies or conditions.”

A “clean” offer typically means no contingencies, no seller credits, and often a higher earnest money deposit.

If this is the home of your dreams, a clean offer is attractive to sellers because it presents fewer obstacles to closing. In hot markets, a clean offer can help you stand out among multiple bids. However, only write a clean offer if your goal is to get the home, no matter the condition.

Additionally, remember that it is an agent’s fiduciary responsibility to act in the client’s best interest and follow your direction. 

“This Is a Pocket/Off Market  Listing”

Translation: “It’s a home that’s for sale but not publicly listed.”

Some people do not want to go through the process of listing their home on the market and will ask agents to privately market their home to select buyers or other agents.

Why might someone want to do this?

Listing a home for sale is a process. From decluttering, cleaning, and photos to vacating for home tours and open houses, listing a home for sale is challenging.

It can be more attractive to skip that and go straight to finding a buyer. Additionally, it can be a great way for buyers to find hidden gems or off-market deals. However, it also requires having the right connections—or working with an agent who does.

“Let’s Review the Disclosures”

Translation: “Let’s look at what the seller is legally required to share about the home.”

Home sellers must provide documentation on the home’s condition, including any known issues, repairs, or neighborhood nuisances. Reviewing these helps you avoid surprises and make an informed decision. Home inspections always provide extra peace of mind, even if the disclosures look favorable. 

The Bottom Line

As a real estate agent we are here to guide and advocate for you—but that doesn’t mean you have to feel out of the loop. The more you understand the language of real estate, the more empowered you’ll be to ask questions, make decisions, and navigate this journey with confidence.

So the next time your agent mentions “pending inspections” or suggests writing a “clean offer,” you’ll know exactly what this real estate phrase means—and you’ll be ready to take the next step like a pro.