If you’ve ever toured a home or read a contract and thought, “What does that actually mean?” — you’re not alone. Real estate comes with its own vocabulary, and Denver’s fast-moving market adds even more nuance.
This guide breaks down the most common Denver real estate terms you’ll hear when buying or selling, explained in plain English.
Common Denver Real Estate Terms (Plainly Explained)
MLS (Multiple Listing Service)
A shared database where agents list homes for sale. If it’s on Zillow or Realtor.com, it usually came from the MLS.
DOM (Days on Market)
The number of days a home has been listed before going under contract.
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Low DOM = strong demand
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High DOM = more room to negotiate
Under Contract
The seller has accepted an offer, but the deal isn’t final yet. Inspections, appraisal, and financing still need to happen.
Earnest Money
A good-faith deposit (usually 1–3% of the purchase price) that shows the buyer is serious. It’s held by a neutral party and applied toward closing costs if the deal closes.
Contingency
A condition that must be met for the contract to move forward. Common contingencies include:
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Inspection
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Appraisal
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Financing
Contingencies protect the buyer.
Inspection Objection
In Colorado, buyers formally object to inspection items they want repaired, credited, or renegotiated. This is a standard step—not a deal breaker.
Seller Concessions
Money or credits the seller gives the buyer, often used to cover closing costs or buy down the interest rate.
Appraisal Gap
The difference between the agreed purchase price and the appraised value if the appraisal comes in low. In some cases, buyers agree in advance to cover part or all of the gap.
Comparables (“Comps”)
Recently sold homes used to determine market value. Appraisers and agents rely heavily on comps to justify pricing.
Active, Pending, Closed
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Active: Available for sale
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Pending: Under contract, contingencies satisfied
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Closed: Sale is complete and recorded
Denver-Specific Terms You’ll Hear
I-70 Corridor
Refers to areas along Interstate 70, often mentioned when discussing foothills access, mountain travel, or ski traffic.
Foothills Property
Homes near the base of the mountains (Golden, Morrison, Evergreen). These often involve unique considerations like snow load, fire mitigation, and private roads.
HOA (Homeowners Association)
An organization that manages shared community rules and amenities. HOAs may restrict rentals, exterior changes, or parking.
STR (Short-Term Rental)
Properties rented for short stays (Airbnb/VRBO). STR rules vary widely across Denver and surrounding towns.
Radon Mitigation
Radon is a naturally occurring gas common in Colorado. Many homes require mitigation systems after testing during inspection.
Financing & Closing Terms Explained
Pre-Approval vs. Pre-Qualification
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Pre-Qualification: Informal estimate
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Pre-Approval: Verified by a lender and required to submit strong offers
Escrow
A neutral account that holds funds and documents during the transaction.
Title Commitment
A report showing the legal ownership of the property and any liens or issues that must be resolved before closing.
Final Walkthrough
A last visit before closing to ensure the home’s condition matches the contract and agreed-upon repairs are complete.
Recording
When the deed is officially filed with the county—this is when ownership legally transfers.
Why Understanding the Lingo Matters
Knowing these terms helps you:
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Feel confident during negotiations
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Understand your contract deadlines
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Ask better questions
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Avoid surprises
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Make smarter decisions
Real estate doesn’t have to feel intimidating when the language makes sense.
How the Living Colorado Team Helps Translate the Process
Our job isn’t just to open doors—it’s to explain every step, every term, and every decision so you feel informed and in control. Whether you’re buying your first home or selling a longtime property, clarity matters.
Final Thoughts: Knowledge Is Your Best Advantage
Denver’s real estate market moves quickly, but understanding the language gives you an edge. When you know what terms mean—and how they affect your deal—you can move forward with confidence.
If you have questions about any real estate terms or want guidance tailored to your situation, the Living Colorado Team is here to help.
👉 Get clear, local guidance:
https://LivingColoradoTeam.com