Real estate agent speak: how the right jargon can help save you time

Experts have revealed how knowing some key real estate jargon can save you time and stop agents trying to take advantage of you. These are the most common keywords and phrases.

Nathan Mawby

@mrmawby

4 min read

November 29, 2022 - 8:00AM

News Corp Australia Network

Paying close attention to what real estate agents say can help you get ahead of the pack, according to leading homebuying professionals. Picture: Tim Hunter.

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In the high stakes world of real estate, talking the talk can stop agents trying to pull one over on buyers and even save them time and money.

Real Estate Buyers Agents Association of Australia president Cate Bakos said knowing the right lingo could “disarm an agent”.

“It can help get you an insight into how they will deal with your offer, and they also use jargon words for different buyers and vendors that can help shape your purchase,” Ms Bakos said.

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She suggested buyers start by asking “what are your best comps” (short for comparable sales). This should get agents talking about other sales in the area, and might reveal if they think any have been quoted lower than they will sell for.

Wakelin Property Advisory director Jarrod McCabe agreed, noting that “knowing the language can often fast track things”.

Knowing the right words can help fast track your homebuying process.

“It demonstrates that you are knowledgeable, so you might well avoid having the agent try a few more strategies on you,” Mr McCabe said. “They are less likely to try to take advantage of you.”

Some of the key words to keep an eye out for in property ads today include: “needing some love”, “renovator’s delight” and “original condition”.

“That can put off some buyers, and might mean there’s not as much competition for that property,” Mr McCabe said.

If an agent mentions an “off market” opportunity, he advised clarifying if they meant “pre-market”.

Mr McCabe said at this time of year it was common for agents to mention homes expected to be listed early next year – but they generally would not sell early unless a very generous offer was made.

Listening for the subtext when talking to agents can reap rewards. Picture: iStock.

He also advised that what you say as a buyer can impact the vendor’s view of you.

Making an offer “subject to finance” – which he warned while in some cases necessary, could mean you are beaten by another buyer who is prepared to go “unconditional”.

Once you have an agent talking, here are some key terms the buyer’s advocates advise buyers should be listening out for, or to be dropping into their next conversation.

HOW TO SPEAK REAL ESTATE AGENT

Genuine seller

This means they are committed and the agent is confident they will get a deal done.

Lofty expectations

If you hear words to this effect about a listing, it is a sign the vendor is likely to hold out for a high price – even if it costs them a sale in the short-term.

It’s not the vendor you need to worry about

There are multiple buyers with a budget at the level the vendors are seeking.

Overcooked

A common phrase to describe a listing that was priced too high and has scared off buyers – watch for a reduction in future.

Getting the price right on a home sale is often related to picking the market’s temperature.

Paid overs

If you hear this said about recent sales, they might not be a good comparison for value.

They’ve missed out on a few

Indicates a rival could be “fatigued” and willing to pay more than a home is worth to end their search.

They want their day in the sun

Common agent speak for – it is going to auction, no matter what you offer.

Under offer

The home is sold, but it is not unconditional – ask the agent to let you know if it starts looking shaky.

Uneducated

This can be a sign other buyers might be looking at a home they cannot afford under competition.

Last right of refusal

Requesting this can ensure you are given a chance to top other offers.

REAL ESTATE JARGON

Caveat

A notice buyers often put on a property to secure their interests before settlement.

Capital gains

The increase in value of a property over time. This impacts capital gains tax for investments.

Cooling off

A period of time buyers have to change their mind for private sales (varies from state to state).

Equity

What a home is worth compared to its loan. As prices fall, homes might hit negative equity.

LMI

Lenders mortgage insurance, a fee paid to insure a bank against a loan that is (usually) below 20 per cent equity.

Knowing your way around property taxes like negative gearing can have big benefits.

Negative gearing

Making a loss on an investment property and using that loss to reduce how much tax you pay.

ROW

A right of way to access, usually from the side or rear, a property.

STCA

Subject to council approval, common when agents speculate on development potential at a property.

AUCTION ACTION WORDS

First call, second call, third call

An auctioneer’s gambit aimed at eliciting bids for a home that is (often) not yet at its reserve price. Once it is, it becomes a warning the home could be knocked down at the current bid.

Non-referral auction

The agent will not be going inside to speak with the vendor, because they are confident in either a low reserve or high buyer interest.

Passed in

Properties that do not sell during a live auction (they may subsequently be negotiated to a sale soon after, which is still subject to auction conditions).

Reserve

The price a vendor is prepared to sell their home for – this might differ to advertised prices. Often an auctioneer notes it has been reached by saying, “we’re on the market”.