Real Estate Terms and Plain-English Glossary for Northern Utah Buyers and Sellers.

The estimated market value of a property after all planned repairs or renovations are complete. Used in fix-and-flip and BRRRR strategies to determine the maximum a buyer should pay for a distressed property. Northern Utah fix-and-flip investors typically target purchases at 70% of ARV minus estimated repair costs.

A licensed appraiser's opinion of a property's market value, required by most lenders before funding a mortgage. The appraiser compares the property to recent comparable sales in the same Northern Utah neighborhood. If the appraised value comes in below the purchase price, the buyer and seller must either renegotiate the price, the buyer pays the difference in cash, or the transaction falls apart.

The difference between a home's appraised value and the agreed purchase price. In competitive Northern Utah markets, buyers sometimes offer above asking price and agree in the contract to cover any appraisal gap — meaning if the home appraises at $450K but the agreed price is $465K, the buyer will pay the $15K difference out of pocket rather than through the loan.

A sale where the seller will not make any repairs, regardless of what the inspection reveals. Buyers can still inspect the property — they simply agree in advance to accept it in its current condition or walk away. As-is listings are common with estate sales, foreclosures, and properties with deferred maintenance in Northern Utah.

A mortgage that a new buyer can take over from the seller at the original loan's interest rate — rather than taking out a new loan at current market rates. VA and FHA loans are generally assumable. In Northern Utah's elevated rate environment, homes with assumable low-rate VA or FHA mortgages from 2020-2022 carry significant value to qualifying buyers.

A monthly housing stipend paid to active duty service members to offset housing costs. BAH rates for Hill AFB in Davis County are set at levels that typically cover or nearly cover a mortgage payment on a qualifying Northern Utah home. Many military buyers use their BAH as the primary funding source for their housing payment — often on a zero-down VA loan.

Buy, Rehab, Rent, Refinance, Repeat. An investment strategy where an investor purchases a distressed property, renovates it to increase value, places a tenant, cash-out refinances to recover invested capital, then repeats with the recycled funds. Popular in Ogden and Weber County where distressed inventory exists and after-repair values support the math.

A real estate agent who represents the buyer exclusively and is contractually obligated to act in the buyer's best interests. In most Northern Utah transactions, the seller pays the buyer's agent commission — meaning buyers receive full professional representation at no direct cost. The buyer's agent guides search, offer strategy, inspection negotiation, and closing.

A market condition where there are more homes for sale than active buyers, giving buyers negotiating leverage — price reductions, seller concessions, longer inspection periods. The opposite of a seller's market. In 2026, Weber County and the higher price ranges in Northern Utah are approaching buyer's market conditions, while Davis County's core markets remain seller-favored.

Annual net operating income divided by the property's purchase price, expressed as a percentage. A 5.5% cap rate means the property generates 5.5 cents of annual income for every dollar invested — before debt service. Northern Utah single-family cap rates currently range from 4.2% (Farmington) to 6.4% (Ogden) depending on price point and location.

Annual pre-tax cash flow divided by the total cash invested (down payment plus closing costs plus any initial repairs). Measures return on the actual dollars deployed — distinct from overall ROI which includes appreciation and equity paydown. A Northern Utah rental yielding $6,000/year on $40,000 invested has a 15% cash-on-cash return.

A five-page document your lender must provide at least three business days before closing, detailing your final loan terms and all closing costs. Review every line carefully and compare it to your original Loan Estimate — specific fees are regulated and cannot increase beyond allowed tolerances without re-disclosure.

A REALTOR's data-driven estimate of a property's market value based on recent comparable sales in the same Northern Utah neighborhood. Different from a formal appraisal — a CMA is provided by an agent, typically at no cost, and is used for pricing strategy. I provide free CMAs for Northern Utah homeowners considering selling.

A condition in a purchase agreement that must be satisfied for the sale to proceed — or the buyer can cancel and recover their earnest money. The three most common contingencies in Northern Utah are: inspection contingency (right to inspect and negotiate repairs), financing contingency (deal dies if the loan falls through), and appraisal contingency (protection if the home doesn't appraise at purchase price).

Documentation from the VA confirming a service member, veteran, or surviving spouse qualifies for VA loan benefits. Required by VA lenders before issuing a VA pre-approval. Most VA lenders can pull the COE directly from the VA system during the pre-approval process — borrowers typically do not need to gather it independently.

A mortgage not insured or guaranteed by a government agency — as opposed to FHA (government-insured) or VA (government-guaranteed) loans. Conventional loans follow Fannie Mae and Freddie Mac guidelines. Down payments as low as 3% for first-time buyers, PMI required below 20% down, and PMI can be removed at 20% equity — unlike FHA mortgage insurance.

Fees and expenses paid by buyer and seller at the closing of a real estate transaction — separate from the purchase price and down payment. Northern Utah buyers typically pay 2-4% of the purchase price; sellers typically pay 6-9%. See the full breakdown in the Closing Costs Guide.

The number of days a listing has been active on the MLS. In Northern Utah's current market, correctly priced homes in Davis County sell in 14-28 days; Weber County averages 34 days. Homes sitting beyond 45-60 days typically signal overpricing and develop a "stigma" — buyers wonder what is wrong with the property even when nothing is.

Your total monthly debt payments — including the new mortgage — divided by gross monthly income. The primary metric lenders use to evaluate loan eligibility. Most Northern Utah conventional lenders want total DTI below 43-45%. FHA allows slightly higher. VA is more flexible. High car payments and student loans are the most common DTI obstacles for Northern Utah buyers.

Utah's primary security instrument — the legal document that gives a lender the right to foreclose if you default on your mortgage. Most states use a mortgage document for this purpose; Utah (like most western states) uses a deed of trust involving three parties: the borrower (trustor), the lender (beneficiary), and a neutral trustee.

A good-faith deposit paid by the buyer when an offer is accepted, demonstrating serious intent to purchase. In Northern Utah, EMDs typically run 1-2% of the purchase price ($4,500-$9,000 on a $450K home). The money is held in escrow and applied toward closing costs at closing. Buyers can lose their EMD if they back out without a valid contingency reason — which is why contingency language in the offer matters so much.

The difference between a property's current market value and the outstanding mortgage balance. A Northern Utah home worth $465,000 with a $310,000 mortgage balance has $155,000 in equity. Equity increases as the mortgage is paid down and as the property appreciates. Equity is the foundation of most homeowner wealth-building.

In a real estate transaction context, escrow refers to a neutral third party (the title company in Utah) that holds funds and documents during the transaction and coordinates the closing. Being "in escrow" means under contract. In a mortgage context, an escrow account is where your lender holds monthly deposits to pay your annual property taxes and homeowner's insurance.

A mortgage insured by the Federal Housing Administration. Requires 3.5% down with a 580+ credit score. More accessible than conventional for buyers with lower credit or limited savings. The tradeoff: FHA loans carry an upfront mortgage insurance premium (1.75% of loan amount) and an annual MIP that stays for the life of the loan if you put less than 10% down — a real long-term cost to factor into comparisons.

A one-time fee paid at closing on VA loans, ranging from 1.25-3.3% of the loan amount depending on down payment and first vs subsequent use. It replaces PMI. The fee can be rolled into the loan amount. Veterans with a service-connected disability rating of 10% or higher have the fee waived entirely.

A buyer's last inspection of the property before closing — typically 24 hours prior. The purpose is to verify the property's condition is the same as when the offer was accepted, that agreed-upon repairs were completed, and that the seller has vacated. Finding significant issues during the final walkthrough can delay or alter closing.

A professional evaluation of a property's condition conducted by a licensed home inspector. Covers foundation, roof, HVAC, plumbing, electrical, and more. Inspections in Northern Utah typically cost $350-$600 and take 2-3 hours. The inspection report is the primary basis for repair negotiations — or for the buyer to cancel the contract under the inspection contingency.

A governing body in planned communities, condos, and townhome developments that maintains common areas and enforces community rules (CC&Rs). HOA dues are paid monthly or annually and must be included in your affordability calculations. Northern Utah HOA fees range widely — from $50/month for basic communities to $400+/month for managed communities with amenities.

A short-term, asset-backed loan from a private lender used primarily by investors to purchase distressed properties quickly. Hard money loans close fast (sometimes in days), require little documentation, and carry high interest rates (typically 10-15%). Used by Northern Utah fix-and-flip investors who need speed to win distressed property purchases and plan to refinance into conventional financing after renovation.

The total number of homes currently listed for sale in a given market. Measured in "months of supply" — how long it would take to sell all current listings at the current rate of sales. Under 3 months = strong seller's market. 4-6 months = balanced market. Over 6 months = buyer's market. Northern Utah currently sits at 3.5-5 months depending on county and price range.

A contract clause giving the buyer the right to have the property professionally inspected within a specified timeframe (typically 7-10 days in Northern Utah) and to request repairs, a price reduction, or cancel the contract based on findings. Waiving the inspection contingency makes an offer more competitive but increases buyer risk significantly.

A legal claim against a property for an unpaid debt. A mortgage is a voluntary lien — you agreed to it as a condition of your loan. Involuntary liens can be placed by the IRS (tax lien), a contractor (mechanic's lien), or a court (judgment lien). All liens must be paid or cleared before title can transfer cleanly in a real estate sale. This is what title insurance protects against.

The percentage of asking price that homes actually sell for. A 98% ratio means homes are selling for 98 cents on the dollar. Northern Utah homes in the $380K-$520K Davis County range are currently closing at 97-101%, meaning well-priced homes frequently sell at or above asking. This is a real-time indicator of market strength in a specific price range.

A three-page standardized document a lender must provide within three business days of a loan application. It itemizes all anticipated loan terms, monthly payment, and closing costs. Using Loan Estimates to compare offers from multiple lenders is the single most effective way to reduce financing costs on a Northern Utah home purchase.

The database used by licensed real estate agents to list and search properties. In Utah, the official MLS is UtahRealEstate.com. While some listings appear on public sites like Zillow, full MLS access requires a licensed agent and provides listings 24-48 hours before they appear publicly. This time advantage matters in Northern Utah's competitive price ranges.

The VA's required property condition standards that must be met for a VA loan to fund on a specific property. VA appraisers evaluate both value and MPRs. Common Northern Utah MPR issues include peeling paint on older homes (pre-1978 triggers lead paint rules), un-strapped water heaters, functional roof without active leaks, and safe bedroom egress. I identify potential MPR issues before writing VA offers.

Insurance that protects the lender — not you — if you default on the mortgage. PMI (Private Mortgage Insurance) applies to conventional loans below 20% down and can be removed at 20% equity. MIP (Mortgage Insurance Premium) applies to FHA loans and stays for the life of the loan if you put less than 10% down. VA loans never require mortgage insurance.

A property available for purchase that has not been listed on the MLS. Off-market properties include homes where owners are considering selling but haven't listed yet, coming-soon properties, and homes sold through direct agent networks before hitting public markets. Access to off-market inventory is one of the real advantages of working with an active Northern Utah buyer agent.

An optional but strongly recommended insurance policy that protects the buyer from financial loss if a title defect is discovered after closing — undisclosed liens, ownership disputes, recording errors, or fraud in prior transactions. In Utah, sellers customarily pay for the owner's title insurance policy. One-time premium, lifetime coverage.

A lender's written commitment to loan a specific amount, based on verified income, assets, and credit. Stronger than a pre-qualification (which requires no verification). Required by most Northern Utah sellers and listing agents before accepting a showing request. A full pre-approval from a Northern Utah lender typically takes 24-48 hours with documents in hand.

Insurance required on conventional loans when the down payment is less than 20%. Protects the lender if you default. Costs $50-200/month per $100,000 borrowed on a Northern Utah purchase. PMI can be removed when you reach 20% equity — either through principal paydown, appreciation, or a combination. Unlike FHA MIP, removal is possible without refinancing.

The legally binding contract between buyer and seller that governs a real estate transaction. In Utah, the REPC (Real Estate Purchase Contract) is the standard form used by licensed agents. It specifies price, earnest money amount, contingency deadlines, included personal property, and closing date. Every element is negotiable until both parties sign.

Utah's property tax law that reduces the taxable value of a primary residence to 55% of its market value. This exemption applies automatically — you do not need to file for it. It is one of the most meaningful but least understood aspects of owning a home in Northern Utah, and it is why investment properties pay significantly higher property taxes than owner-occupied homes.

A licensed real estate agent who is also a member of the National Association of REALTORS (NAR) and is bound by its Code of Ethics. Not all licensed real estate agents are REALTORS — the term is trademarked. REALTORS must complete ongoing ethics training and are subject to additional oversight beyond state licensing requirements.

The standard real estate contract form used in Utah residential transactions, developed by the Utah Association of REALTORS. Includes all key transaction terms and standard contingency language. Utah's REPC is among the most seller-favorable standard contracts in the country — understanding its nuances is one reason working with an experienced Northern Utah agent matters.

A market condition where buyer demand exceeds available inventory, giving sellers negotiating leverage — multiple offers, above-asking prices, and waived contingencies. Davis County's $380K-$520K range remains in seller-favored conditions in 2026. When homes receive multiple offers in the first 72 hours, you are in a seller's market for that property type and location.

Financial contributions from the seller toward the buyer's closing costs, negotiated as part of the purchase agreement. Asking the seller to contribute 1-3% toward closing costs is common in Northern Utah transactions, especially when inventory gives buyers more leverage. The maximum allowed depends on loan type and down payment.

A home sold for less than the outstanding mortgage balance, with lender approval. Short sales typically take longer than standard transactions because the seller's lender must approve the sale price and terms in addition to the buyer and seller. They are rare in Northern Utah's current market given appreciation levels but appear more frequently during economic downturns.

Protection against financial loss from defects in a property's title — undisclosed liens, ownership disputes, recording errors, forged deeds, or fraud in prior transactions. Two types exist at Northern Utah closings: the lender's policy (required, protects the lender) and the owner's policy (optional but recommended, protects the buyer). In Utah, sellers customarily pay for the owner's policy. Both are one-time premiums at closing.

Utah does not impose a traditional real estate transfer tax. There is a nominal document recording fee paid when the deed is recorded with the county recorder. This makes Utah notably different from states like California where transfer taxes can total thousands of dollars on a single transaction — one of the structural cost advantages of transacting in the Northern Utah market.

A property where an offer has been accepted by the seller but the transaction has not yet closed. Also called "pending" or "in escrow." The property may still fall through if contingencies are not resolved — inspection issues, financing failures, or appraisal gaps can kill a deal during the under-contract period. In Northern Utah, most under-contract homes close; about 5-8% fall out for various reasons.

Utah's state housing finance agency, which offers below-market rate mortgage programs and down payment assistance to qualifying buyers through a network of participating lenders. UHC programs are only available through approved lenders — not all Northern Utah lenders participate. The Score second mortgage program can cover up to 6% of the loan amount for qualifying first-time buyers.

A home loan guaranteed by the Department of Veterans Affairs for eligible active duty service members, veterans, and surviving spouses. Zero down payment, no PMI, competitive interest rates typically 0.25-0.5% below market, and a lifetime benefit reusable after payoff. Widely used in Northern Utah's Hill AFB market. One of the most powerful financial benefits available to military buyers.

The percentage of rental units in a market that are unoccupied at any given time. Northern Utah vacancy rates in Davis and Weber Counties run 2-4%, well below the national average of 6%+. Hill AFB's stable military tenant base is a primary driver of Northern Utah's consistently low vacancy — military renters on PCS orders tend to occupy for 2-3 years.

The most common deed used in Northern Utah residential real estate transactions. The seller warrants that they own the property free and clear of undisclosed encumbrances and will defend the buyer's title against any claims. A general warranty deed covers all prior ownership; a special warranty deed covers only the period during the seller's ownership. Standard purchases use general warranty deeds.

A serious and increasingly common scam targeting real estate transactions. Fraudsters intercept closing communications and send buyers fake wire instructions — redirecting closing funds to criminal accounts. Always verify wire instructions by calling your title company directly using a phone number you find independently — never from an email that arrives during the transaction process.