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Plain-English Definitions

Home-Selling Glossary

What do these home-selling terms mean?

Selling a house comes with jargon — ARV, as-is, liens, probate, short sale, certificate of occupancy. This glossary defines the terms a New Jersey homeowner runs into in plain English, so you can read any offer or closing document with confidence.

After-Repair Value (ARV)
What a home would sell for once fully repaired and updated, based on comparable sales. Cash investors estimate ARV first, then subtract repair and resale costs to reach an offer.
As-Is
Selling a property in its current condition, with the buyer accepting it without requiring the seller to make repairs or improvements.
Cash Buyer
A buyer who purchases with their own funds rather than a mortgage, so there is no lender, appraisal, or financing contingency — which allows faster, more certain closings.
Certificate of Occupancy (CO)
A municipal document confirming a property meets local code for occupancy. Many NJ towns require a resale CO or inspection before a home can transfer.
Closing Costs
The fees and expenses paid to complete a sale (title, recording, transfer fees, etc.). A reputable cash buyer typically pays these so the seller owes nothing at the table.
Contingency
A condition that must be met for a sale to proceed, such as financing, appraisal, or inspection. Cash offers usually have few or none, lowering the risk a deal falls through.
Deed
The legal document that transfers ownership of real property from seller to buyer at closing.
Equity
The portion of a home’s value the owner actually owns — the market value minus any mortgages and liens.
Foreclosure
The legal process by which a lender takes and sells a property after a borrower defaults. New Jersey foreclosures go through the courts (judicial foreclosure).
iBuyer
A company that uses algorithms to make fast online offers and charges a service fee. Major iBuyers focus on large metro markets and have little presence in South Jersey.
Judgment Lien
A claim against your real estate created when a creditor wins (or you settle) a lawsuit and dockets the judgment. It is generally paid from sale proceeds at closing.
Lien
A legal claim against a property for a debt — mortgage, taxes, judgments, contractor bills, and more. Valid liens are paid from the proceeds before clear title transfers.
Letters Testamentary
The document a county surrogate issues to an executor, granting authority to act for an estate — including selling its real estate.
Pre-Foreclosure
The period after a homeowner falls behind on payments but before a completed foreclosure/sheriff’s sale, when selling can still protect remaining equity.
Probate
The court-supervised process of settling a deceased person’s estate — validating the will, appointing an executor, paying debts, and distributing assets.
Proof of Funds
Documentation showing a cash buyer has the money available to close. A legitimate buyer can provide it on request.
Realty Transfer Fee (RTF)
A New Jersey fee paid when a deed is recorded, normally by the seller, calculated on a sliding scale based on the sale price.
Short Sale
A sale in which the lender agrees to accept less than the full mortgage balance, used when the debt exceeds the home’s value.
Stepped-Up Basis
For inherited property, a reset of the cost basis to fair-market value at the date of death — which often greatly reduces or eliminates taxable gain on a near-term sale.
Tax-Sale Certificate
In NJ, when property taxes go unpaid the municipality can sell a lien (certificate) that accrues interest and can eventually lead to tax-lien foreclosure.
Wholesaler
Someone who puts a house under contract with no intent to buy it, then reassigns that contract to an end investor for a fee — which can mean a lower price and a less certain close.

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