Reading some real estate listings can be a challenge, not to mention the actual contract and loan information. Short sale, W/W crpt, ARM, lien… what does it all mean? This glossary may help ease some of the confusion.

• 4B/2B: Four bedrooms and two bathrooms.

• Appraised Value: The estimated value of the property as determined by a real estate appraiser.

• ARM: Adjustable Rate Mortgage is a type of loan where the interest rate varies according to market conditions.

• Assessed Value: The value of the property used to determine the amount of property tax the owner will pay. Usually not the same amount as the appraised value.

• Comps: When a real estate agent creates a list of recently sold properties in the area which are similar to the one that interests you. Comps, otherwise known as comparable sales, are a way to determine a property’s market value.

• Dk: Deck

• EIK: Eat-in kitchen

• FDR: Formal dining room.

• Fixed Rate Mortgage: The interest rate does not change for the life of the mortgage.

• FP: Fireplace

• FSBO: For sale by owner.

• HDW: Hardwood floors.

• Home Warranty: A type of insurance which covers certain home system repairs (heating and air conditioning; plumbing; electrical; appliances). Buyers often request a seller pay for a home warranty as part of the sale.

• Loan Origination Fee: The fee charged by a lender for processing a new loan. The fee can vary from lender to lender.

• REO: A real estate property that is owned by the bank or lender because it didn’t sell at a foreclosure auction.

• Reverse Mortgage: A lender pays older homeowners based on the equity of their home. When you sell the home, move out, or die, you or your estate pays back the loan, which sometimes means selling the home to cover the cost.

• Short Sale: A property where the homeowner’s lender is helping them avoid foreclosure by allowing them to sell the house for less than what is owed on the mortgage.

• Title Company: A company whose role is to make sure the title to a piece of property is valid and there are no liens or legal proceedings tied to the property. Title companies issue title insurance to protect against any claims made on the property’s title and conduct the closing on the sale of the property.

• W/D: Washer and dryer.

• W/W crpt: Wall-to-wall carpeting.