| A | B |
|---|
| market value | highest price that the property will bring on the market |
| equity | difference between the market value of property and the amount owed on it |
| closing costs | expenses incurred in transferring ownership from buyer to seller in a real estate transaction |
| offer | formal document that expresses interest in entering into a contract with someone else |
| earnest money | a portion of the purchase price that the buyer deposits as evidence of good faith to show tha the purchase price offer is serious |
| acceptance | formal agreement to the terms of an offer, forming a contract between the partiies |
| counteroffer | seller wants to change any part of the offer, seller makes an offer in response to another offer |
| fixed-rate mortgage | mortgage on which the interest rade does not change during the term of the loan |
| adjustable-rate mortgage | mortgage for which the interest rate changes in response to the movement of interest rates in the economy as a whole |
| title | legal document that establishes ownership |
| deed | legal document that transfers title of real property from one party to another |
| lien | financial claim on property |
