Real Estate Acronyms

Real Estate Acronyms | Whiteboard Wednesdays 01

Real Estate Acronyms 

In this ongoing, weekly series of videos, we’ll explore a variety of topics in real estate, ranging from industry jargon and key terms to tenant screening and negotiation.  This week, we kicked off our series with an exploration of common real estate acronyms that are often used by industry professionals, but which can be confusing for those who are less acquainted with them.  Here, we’ve collected a dozen of the most commonly used acronyms to help you better understand the ins and outs of real estate investment!


  • MLS:  The MLS is the Multiple Listing Service, the online database where houses are listed by agents or realtors.  The MLS collects real estate listings in a single, accessible location so that they can be easily viewed and sorted.
  • EMD:  An EMD, or Earnest Money Deposit, is sometimes also referred to as Good Faith Money.  This deposit, paid by a buyer to an escrow agent until closing, demonstrates to the seller that the buyer is dedicated to and fully intending to make a real estate purchase.
  • FSBO:  One of the more commonly used acronyms outside of the industry, FSBO simply means For Sale By Owner.  It refers to a property that is being sold directly by its current owner, rather than through a realtor or other service.
  • DD:  The DD or Due Diligence Period is the period of time after an offer has been made and accepted on a property and it has been placed under contract, during which the buyer will conduct a home inspection, appraisal, and so forth to determine that the property is as described and that the sale can continue as expected.
  • POF:  A seller’s agent may ask for POF, or Proof of Funds, from a buyer, particularly with a cash offer, in order to verify that the buyer has the ability to pay for the property, and to prevent unnecessary delays if offers are either not serious or simply unviable.
  • LOI:  An LOI is a Letter of Intent, states what a buyer is willing to offer but stops short of being a full contract.  This enables a seller to determine whether there exists a serious intent to make an offer and to evaluate whether that offer is worth pursuing.
  • CMA:  A CMA, or Comparative Market Analysis, look at similar properties in the area that have recently sold to determine what a seller should ask for their property or how much a buyer should expect to pay.
  • NAR:  The NAR is the National Association of Realtors, a professional organization that provides members with a variety of tools and resources to help them successfully represent their clients.
  • LTV:  A Loan-to-Value ratio, or LTV, determines that ratio of a loan to the value of the property being purchased.  Higher LTVs tend to be riskier for lenders, so this number can help lenders determine how high of a loan to offer and borrowers to prevent themselves from becoming overleveraged in a property.
  • HOA:  An HOA is a Homeowners’ Association, which governs what a certain community allows or disallows.  Most HOAs require monthly or yearly fees to be paid, and are intended to protect owners and maintain the integrity of communities.
  • CCR:  CCRs are Covenants, Conditions, and Restrictions.  A CCR operates similarly to an HOA, and the two terms are often used interchangeably; a CCR may or may not require the payment of fees, however, which can distinguish it from an HOA.
  • FMV:  The FMV of a home is its Fair Market Value, or what it can reasonably be sold for in a given market.  This number should line up with the findings from a CMA, or Comparative Market Analysis.



While these are just a few of the acronyms used in the real estate industry, they represent some of the most commonly used and critical terms for investors, buyers, and sellers alike!


To learn more about real estate investment and the language commonly used in the industry, reach out to Asheville Cash Buyers at 828-222-6443, at, or at!

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on selling your house below. Like us, follow us, connect!

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us!