Real Estate Terms That Sound Fake But Are Real 🤯🏡

A North Carolina Homebuyer & Seller Guide

Ever heard a real estate agent casually drop a term that made you pause and think, “There’s no way that’s real…”? 😅
Believe it or not, real estate is full of quirky, very real terminology—especially here in North Carolina.

Whether you’re buying your first home, selling, or just love learning insider lingo, here are real estate terms that sound fake—but are 100% legit 👇

Due Diligence Fee 💰🧐 (Yes, It’s a Real Thing in NC)

If you’re buying a home in North Carolina, this one’s especially important.

What it is:
A non-refundable fee paid directly to the seller to take the home off the market while the buyer completes inspections and evaluations.

Why it matters:
North Carolina is one of the few states where this is common practice. It shows the seller you’re serious—but it’s important to understand the risk before writing that check.

📌 Pro Tip: This fee is separate from your earnest money deposit.

Earnest Money Deposit 🤝💵

Sounds emotional… but it’s financial.

What it is:
A good-faith deposit showing the buyer’s intent to move forward with the purchase.

The difference in NC:
Unlike due diligence fees, earnest money may be refundable if the contract is terminated properly under the contract terms.

Cloud on Title ☁️📄

No rain involved—just paperwork.

What it is:
A legal issue affecting ownership of a property, such as unpaid liens, boundary disputes, or recording errors.

Why it matters:
A cloud on title must be cleared before closing can occur. Title companies work behind the scenes to resolve these issues.

Encroachment 🚧🏠

No, not a sci-fi invasion.

What it is:
When part of a structure (like a fence or driveway) extends onto a neighboring property.

Why it matters:
Encroachments can impact financing, property use, and resale value—especially in tighter neighborhoods.

Love Letter (Buyer Letter) 💌🏡

Sweet… but risky.

What it is:
A personal letter from a buyer to a seller explaining why they love the home.

Important note:
Many agents avoid these due to fair housing concerns, and some sellers won’t accept them at all.

Fixtures vs. Personal Property 🛋️🔩

It’s not always obvious.

What it is:

• Fixtures: Items permanently attached (light fixtures, built-in appliances)
  
  
• Personal Property: Items that move (washers, dryers, refrigerators—sometimes!)
  
  

📌 Always confirm what stays and what goes in the contract.

Short Sale 😬📉

Short on profit—not on paperwork.

What it is:
A sale where the home sells for less than what the seller owes, requiring lender approval.

Why it matters:
These transactions can take longer and involve more steps, but may present opportunities for buyers.

Appraisal Gap 📊🏡

Small word. Big impact.

What it is:
The difference between the appraised value and the agreed purchase price.

In competitive NC markets:
Buyers may cover part—or all—of the gap to keep the deal together.

Final Walkthrough 🚪🔍

Not a tour—more like a checklist.

What it is:
The buyer’s last chance to confirm the home’s condition before closing.

Purpose:
To ensure agreed-upon repairs are complete and nothing has changed since inspections.

Why Knowing These Terms Matters 🧠✨

Real estate can feel overwhelming, especially when unfamiliar terms pop up. Understanding the language helps you:

• Feel confident in decisions
  
  
• Avoid surprises
  
  
• Navigate North Carolina contracts smoothly
  
  

And of course, having a knowledgeable local agent makes all the difference 😉

Ready to Talk Real Estate? 🏡📲

Whether you’re buying, selling, or just have questions about the NC market, I’m here to help you every step of the way.

📩 Reach out anytime to get expert guidance—without the confusing jargon.