Holdback

Definition

Money withheld at closing to ensure the seller completes promised repairs or obligations—basically your insurance policy against seller disappearance.

Example Usage

We established a $15,000 holdback to ensure the seller completes the roof repairs within 30 days of closing.

Origin

Legal term referring to retaining funds

Fun Fact

Holdbacks often lead to disputes about what constitutes 'complete' repairs, requiring detailed documentation and photos.

Source: NAR Purchase Agreement Standards

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sub2

Short for 'subject to'—acquiring a property while leaving the existing mortgage in place and making payments on behalf of the seller. It's a creative financing technique that makes attorneys nervous and investors wealthy.

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The moment when your total homeownership costs equal what you would have spent renting, making your purchase financially justified. It's the mathematical validation you desperately need after signing that mortgage.

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WAC

Walk-Away Cash—the net proceeds a seller receives after paying off mortgages, liens, commissions, and closing costs. It's the moment of truth when sellers discover whether they're taking home a check or writing one.

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gazump

The ethically questionable act of accepting a higher offer on a property after already agreeing to sell to someone else but before contracts are signed. It's the real estate equivalent of leaving someone at the altar for a richer suitor.

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The predictable pattern of growth, stability, decline, and potential revitalization that communities experience over time. It's the circle of life for zip codes, complete with the inevitable gentrification controversy.

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tax increment financing

A public financing method using future property tax increases from development to fund current infrastructure improvements. Politicians love it because it looks like free money; critics note it's borrowing from tomorrow to pay for today, municipal style.

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