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Home › Glossary of Real Estate Terms
Buying or selling a property comes with a lot of jargon, and it can be hard to keep up with what everyone is talking about. This glossary is designed to translate real estate language into clear, simple explanations so you can feel more confident at every step of your property journey. Whether you are signing a contract, speaking with an agent or reviewing your loan documents, you can quickly look up any term you are unsure about.
Each definition focuses on what the term actually means, why it matters to you as a homeowner, buyer, seller or investor, and how it shows up in real life. Where it is helpful, we also include practical examples so you can see how the term would apply in a real transaction in Australia.
If you are comparing agents, negotiating an offer or getting ready to list your property, this glossary can help you ask better questions and avoid costly misunderstandings. And when you are ready to move from researching to taking action, you can use our agent comparison tool to find trusted local agents who understand both the market and your goals.
Acreage homes are properties situated on large plots of land, often one acre or more, offering space, privacy and lifestyle benefits beyond standard suburban blocks.
The agent commission rate is the percentage of your property’s sale price paid to your agent, which directly reduces or boosts the amount you walk away with at settlement.
An apartment is a self-contained residential unit within a larger multi-level building or complex, sharing common spaces such as hallways, lifts, gardens and amenities.
An appraisal is an estimate of your property’s current market value prepared by a real estate agent to help you understand what your home could sell for.
An auction is a public sale where buyers bid competitively on a property, with the highest bidder above reserve securing an unconditional purchase.
A bridging loan is short term finance that lets you buy a new home before selling your current one.
A buyer’s agent is a licensed professional who represents the buyer only, helping them find, assess and negotiate the purchase of a property.
Capital Gains Tax (CGT) is tax you may pay on the profit from selling an investment property, which can significantly reduce your net sale proceeds.
A Comparative Market Analysis is a report prepared by a real estate agent that estimates your property’s likely selling price based on recent comparable sales in the area.
A contingency clause is a condition in a property contract that must be met for the sale to proceed.
A contract is a legally binding agreement between the buyer and seller that sets out the terms and conditions of a property sale.
Conveyancing is the legal process of transferring property ownership from the seller to the buyer.
The cooling off period exists to protect buyers by giving them time to finalise finance, complete inspections or simply reconsider their decision. It applies to most private treaty sales in Australia but usually does not apply to auctions, where the sale becomes unconditional immediately. Each state has different rules about how long the cooling off period lasts and what financial…
Days on market is the number of days a property remains listed for sale before it officially sells.
A deposit bond is a financial guarantee that replaces a cash deposit, allowing buyers to pay their deposit at settlement instead of upfront.
A desktop valuation is a quick property value estimate completed without a physical inspection, using recent sales data, online records and market analytics.
A detached house is a standalone residential property that does not share walls or structural elements with neighbouring homes.
A duplex is a residential building divided into two separate homes, each with its own entrance, often sharing a central wall or structure.
A dwelling is any type of residential building or structure designed for people to live in, such as houses, units, townhouses or apartments.
An easement is a legal right that allows another person or authority to access or use part of your land for a specific purpose, such as utilities or shared access.
Equity is the difference between your property’s market value and the amount you still owe on your mortgage.
An estate is a large property or parcel of land, often featuring extensive grounds, multiple structures or a master-planned residential community.
An Expression of Interest campaign invites buyers to submit their best offer in writing by a specific deadline, without the public bidding of an auction.
GRM is a simple calculation that compares a property’s price to its annual rental income to help assess investment value.
A house is a standalone residential property built on its own block of land, offering privacy, space and full ownership of both the dwelling and the land it sits on.
An interest only loan allows borrowers to pay only the interest component of their mortgage for a set period without reducing the principal.
Joint tenants share equal ownership of a property and the surviving owner automatically receives full ownership if one owner passes away.
A kerbside valuation is a quick property assessment performed from the street without entering the home, used by lenders to estimate value based on external appearance and local sales data.
A letting fee covers the professional work involved in advertising the property, organising inspections, screening applicants, handling reference checks and preparing the lease agreement. In Australia, the fee is typically equivalent to one or two weeks’ rent depending on the agency and the local market. This fee helps ensure the property is leased quickly and with the right tenant, reducing…
A listing is the official act of putting your property on the market with an agent, including the creation of your public property advertisement.
A listing agent is the real estate professional who represents the seller, markets the property and negotiates with buyers to achieve the highest possible sale price.
LTV is the percentage of a property’s value that a lender is willing to finance, indicating the borrower’s risk profile and borrowing capacity.
The median house price is the middle value of all home sales in a suburb or region over a set period, showing a typical price without being distorted by very high or low sales.
A mortgage is a home loan secured against your property which must be repaid over time with interest.
Negative equity is most common when property prices fall, when a home is purchased at the peak of a cycle or when owners borrow heavily against their property. It means that if you sold today, the sale proceeds would not be enough to fully pay out your mortgage. This situation can limit your ability to refinance, upgrade or sell easily…
An open home is a scheduled inspection where buyers can view your property without making an appointment.
A property is passed in when bidding at an auction does not reach the seller’s reserve price and the auctioneer withdraws it from sale.
Pre-approval gives buyers a clear understanding of their borrowing capacity and signals to sellers that they are serious and financially prepared. Lenders assess income, expenses, credit history and savings to determine a safe lending limit, but the approval is still conditional on final checks and property valuation. Although pre-approval is not a guaranteed loan, it significantly reduces the risk of…
Property refers to any piece of real estate, including the land and the structures on it, that can be owned, leased, developed or sold.
Property information disclosure is a legal and ethical requirement that ensures buyers receive accurate details about a property before making a purchase decision. This may include structural defects, past repairs, nearby developments, zoning restrictions or compliance issues. Disclosure rules differ between Australian states, but the purpose is always the same which is to protect both parties by promoting transparency. Sellers…
A property valuation provides an objective, evidence based estimate of what a property is worth at a specific point in time. Unlike an agent appraisal, which reflects market demand and selling strategy, a valuation follows strict professional guidelines and is often required by banks for lending purposes. Valuers inspect the property in detail, compare recent sales, analyse land attributes, improvements,…
Rate cuts are reductions in the official cash rate set by the Reserve Bank of Australia, which typically lower borrowing costs and influence property market activity.
A Realtor is a real estate professional who is a member of an industry association and agrees to follow its professional standards and ethical guidelines.
Refinancing allows homeowners to renegotiate their mortgage by switching to a different lender or restructuring their current loan to secure better terms. People typically refinance to reduce repayments, fix or split their interest rate, consolidate debt or access equity for renovations, investment or major life plans. The process involves a new loan application, credit and financial checks, property valuation and…
Rental vacancy rate measures the percentage of rental properties in a suburb or region that are currently unoccupied, showing how tight or relaxed the rental market is.
Rental yield is the annual rental income your property earns expressed as a percentage of its value, showing how hard your investment is working financially.
Strata refers to a system of property ownership where individuals own their unit or lot while sharing ownership and responsibility for common areas within a building or complex.
A townhouse is a multi-level residential property that shares one or more walls with neighbouring homes, often within a managed complex or strata scheme.
Units are self-contained residential dwellings within a larger building or complex, often sharing common walls and common property such as gardens, lifts or hallways.
Zoning is a set of local council rules that determine how land can be used, developed or built upon in a specific area.
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