Contracts under Pressure
This status means all parties have agreed to terms, but the deal is still subject to contingencies
What is “under contract”?
The stage where a lender has reviewed basic info but hasn’t verified everything yet
What is pre-qualification?
Ownership that gives the holder full rights to use and transfer the property
What is fee simple ownership?
Pricing a home just below market value to attract multiple offers is intended to create this outcome
What is a bidding war?
The phrase buyers use when they’re emotionally attached but still pretending to be rational
What is “We want to think about it”?
The clock that starts immediately after acceptance and quietly controls inspections, appraisals, and everyone’s stress levels
What is the contract timeline (or contingency period timeline)?
The stronger version of pre-qualification that includes verification of income, assets, and credit
What is pre-approval?
A recorded claim or unpaid debt that must be resolved before transfer of title
What is a lien?
The number of active listings divided by the rate of sales, used to gauge market balance
What is months of inventory?
The condition where buyers increase their budget after seeing nicer homes
What is budget creep?
The clause that protects a buyer if the home doesn’t appraise for the agreed purchase price
What is an appraisal contingency?
The process where the lender formally evaluates risk before issuing final approval
What is underwriting?
This insurance protects buyers and lenders from defects in ownership history
What is title insurance?
A home that lingers on the market beyond the average time is often described this way
What is stale (or overpriced)?
The moment sellers realize their home is not worth what the neighbor’s sold for
What is market reality (or pricing adjustment moment)?
The moment a buyer loses most of their contractual exit options and starts sleeping less
What is contingency removal (or end of due diligence)?
The document that replaced the HUD-1 and outlines final loan terms and costs
What is the Closing Disclosure?
The right to cross or use someone else’s land for a specific purpose, often discovered late in escrow
What is an easement?
The strategy of adjusting a listing price after low activity to re-engage buyers
What is a price reduction (or repositioning)?
The behavior where clients continuously wait for a “better deal” and miss multiple opportunities
What is analysis paralysis?
This term describes a seller agreeing to repairs or concessions without admitting fault
What is a seller concession (or repair credit)?
This scenario occurs when the appraised value is lower than the contract price, forcing renegotiation or additional cash
What is an appraisal gap?
This situation arises when the structure of a home extends beyond its legal property boundary
What is an encroachment?
This metric compares a home’s final sale price to its original list price, revealing pricing accuracy
What is the sale-to-list price ratio?
The skill agents rely on to keep emotional clients aligned with market conditions and deal timelines
What is expectation management?