Buying or selling your first home in Reno can feel like learning a new language. Terms fly by in listings, contracts, and lender emails, and you’re expected to keep up. You want to make smart decisions without getting lost in jargon. This guide breaks down the most common Reno and Washoe County real estate terms in plain English, with local timelines and tips you can use today. Let’s dive in.
How to use this glossary
- Read the short definition first, then check the Reno specifics.
- Watch for timelines and what money is refundable vs non‑refundable.
- Use the linked resources when you want a deeper explainer from an official source.
Key Reno real estate terms, simply explained
Escrow
A neutral third party that holds money and documents until everyone does what the contract says.
- What this means in Reno: Local title and escrow companies follow joint escrow instructions based on your purchase agreement. They coordinate title work, recording with Washoe County, and disburse funds at closing.
- Quick tip: Ask your agent and lender which escrow documents you will sign and how to deliver your closing funds.
Earnest money
A good‑faith deposit you put into escrow soon after your offer is accepted. It is applied to your costs at closing or handled per the contract if the deal falls apart.
- Reno note: Earnest money is separate from any due diligence fee. Amounts vary, often 1%–3% of the price or a set dollar amount.
- Quick tip: A larger earnest deposit can strengthen your offer, but understand the deadlines that protect it.
Due diligence period and fee
A set time after your offer is accepted when you investigate the property. You can cancel within the period based on your contract terms. In Nevada, buyers often pay a separate due diligence fee.
- What this means in Reno: Due diligence periods are commonly 7–10 days in hot segments and 10–21 days in calmer ones. The fee is negotiated and may be non‑refundable if you continue past the deadline.
- Quick tip: Clarify in writing what is refundable and what is not before you release any contingency.
Seller’s Real Property Disclosure (SRPD)
A form the seller completes to disclose known material issues with the home.
- Nevada rule: Sellers are expected to provide an SRPD. Even “as‑is” listings still require disclosure of known defects. See the state’s disclosure statutes in Nevada Revised Statutes Chapter 113.
- Quick tip: Review the SRPD early and ask follow‑up questions about anything marked “yes” or “unknown.”
Contingencies
Contract conditions that must be met for the deal to move forward. Common ones include inspection, financing, appraisal, and title.
- Reno practice: In multiple‑offer situations, buyers sometimes shorten or waive contingencies to compete. This increases risk if issues come up.
- Quick tip: Before waiving anything, talk with your lender and inspector about risks and backup plans.
Appraisal and appraisal gap
An appraisal is a lender‑required valuation by a licensed appraiser. An appraisal gap is the difference when the appraisal comes in lower than the contract price.
- Reno reality: Competitive offers sometimes exceed list price. If the appraisal is short, you may renegotiate or bring extra cash to close. Some buyers use an “appraisal gap” clause that promises a set amount above the appraised value.
- Learn more: Read the CFPB’s plain‑language guide on what a home appraisal is.
Rate buydown (temporary vs permanent)
Paying money up front to reduce your mortgage rate. Temporary buydowns lower your rate for the first few years. Permanent buydowns, also called points, lower the rate for the life of the loan.
- Reno use: Sellers sometimes offer a buydown as a concession to help with monthly payments. Your lender must disclose the cost and savings.
- Learn more: The CFPB explains discount points and how they work.
Pre‑qualification, pre‑approval, and loan commitment
Pre‑qualification is a quick estimate of what you might afford. Pre‑approval means the lender reviewed your documents and is prepared to lend, subject to the property. A loan commitment is the lender’s formal promise to fund if conditions are met.
- Reno reality: Sellers prefer pre‑approvals or commitments with offers, especially in competitive submarkets.
- Learn more: See the CFPB’s guide to mortgage pre‑approval.
Title insurance and title search
A title search checks public records for liens, easements, and ownership. Title insurance protects you and your lender from covered title defects not caught at closing.
- Reno practice: Washoe County title companies search records and issue owner’s and lender’s policies. Review exceptions and easements carefully.
- Learn more: The CFPB explains what title insurance is and why it matters.
HOA, CC&Rs, and dues
An HOA manages common areas and rules. CC&Rs are the recorded restrictions you agree to follow. Dues are the fees you pay the HOA.
- Reno note: Many condos and planned communities have HOAs. Ask for the resale packet and budget for dues. You can find recorded CC&Rs through the Washoe County Recorder.
- Quick tip: Review parking, pet, rental, and architectural rules early.
Inspections, surveys, and specialty checks
A general home inspection covers major systems. Specialty inspections may include roof, HVAC, pest, pool, radon, septic, or structural. A survey confirms property boundaries.
- Reno specifics: In older neighborhoods, pay attention to drainage, roof age, and any flood or creek‑adjacent concerns. Septic systems are common in rural Washoe County.
- Quick tip: Follow your inspector’s recommendations for any needed specialty inspections within your due diligence window.
Closing costs and prorations
Closing costs include lender fees, title and escrow charges, and government recording fees. Prorations split costs like property taxes or HOA dues between buyer and seller at closing.
- Reno ranges: Many buyers budget around 2%–5% of the price for closing costs. For tax prorations and assessment schedules, check the Washoe County Assessor.
- Learn more: The CFPB explains what closing costs are.
PMI, LTV, and DTI
PMI is private mortgage insurance, often required if you put less than 20% down. LTV is loan‑to‑value, your loan divided by the price or appraised value. DTI is your monthly debt compared to your monthly income.
- Reno reality: These ratios impact your approval and rate. Your lender can show you how a bigger down payment may change PMI and monthly costs.
- Quick tip: Ask for scenarios with and without PMI so you can compare.
As‑is offers
“As‑is” means the seller does not plan to make repairs. You still have the right to inspect and the seller must disclose known defects.
- Nevada rule: An SRPD is still expected even when a property is sold as‑is.
- Quick tip: Do not skip inspections just because the listing says “as‑is.”
Escalation clause
A clause that automatically raises your offer above a competing offer up to a set cap.
- Reno use: Common in multiple‑offer situations. Expect to provide proof of the competing offer. Consider the appraisal impact of a higher price.
- Quick tip: Set a firm cap and plan for a potential appraisal gap.
Short sale, REO, and foreclosure
A short sale is when the seller’s lender agrees to take less than owed. REO means bank‑owned after foreclosure.
- Reno note: These sales can take longer and often sell as‑is. Build in extra time for approvals and inspections.
How these terms work together in a Reno deal
Typical timeline
- Offer to acceptance: hours to a couple of days.
- Due diligence: often 7–21 days, depending on market conditions and what you negotiate.
- Appraisal and underwriting: about 2–4 weeks after ratification.
- Closing: commonly 30–45 days from acceptance, faster when everyone is prepared.
Where your money goes
- Earnest money: into escrow soon after acceptance.
- Due diligence fee: often paid to the seller and may be non‑refundable after the due diligence deadline.
- Inspections and appraisal: paid by you during due diligence.
- Closing funds: down payment and closing costs wired to escrow before signing or on closing day.
Key decision points
- Shorter due diligence makes your offer stronger but leaves less time to uncover issues.
- Appraisal gaps require cash, price changes, or concessions.
- Financing and appraisal contingencies protect you. Waiving them increases risk.
- Consider seller credits for a rate buydown if monthly payment is your main pain point.
Quick checklists
Buyer checklist
- Get a full pre‑approval before you shop.
- Set a realistic due diligence period for inspections and HOA review.
- Ask your lender how much appraisal gap you can cover if needed.
- Confirm what parts of your deposit are refundable and the dates that protect you.
- Review the SRPD and request clarifications quickly.
- Read title exceptions and ask about easements.
- Compare a temporary vs permanent rate buydown if the seller offers credits.
Seller checklist
- Complete the SRPD honestly and thoroughly.
- Decide if higher earnest money or a due diligence fee matters more than price.
- Set clear timelines that give buyers enough time to perform, but keep momentum.
- Review escalation clauses carefully and request documentation of competing offers.
- Confirm how appraisal risks are handled before accepting an offer.
- Coordinate early with title and escrow for a smooth closing and payoff.
Local resources to bookmark
- Nevada seller disclosure statutes: Nevada Revised Statutes Chapter 113
- Standard forms and guidance: Nevada REALTORS
- Property tax and assessments: Washoe County Assessor
- Recorded documents and CC&Rs: Washoe County Recorder
- Mortgage shopping and closing tools: Consumer Financial Protection Bureau
- FHA loan basics: HUD Homebuying
- VA home loan overview: VA Home Loans
- Down payment help and programs: Nevada Housing Division
Ready to put these terms to work for your move in Reno or Sparks? If you want a steady guide through the timelines, fees, and decisions, reach out to Tristan Lipschutz for local, concierge‑level help from offer to keys.
FAQs
What is the difference between earnest money and a due diligence fee in Nevada?
- Earnest money is held in escrow and applied at closing or refunded per the contract; a due diligence fee is often paid to the seller and can become non‑refundable after the due diligence deadline.
How long is the due diligence period in a typical Reno deal?
- It is negotiated, often 7–10 days in competitive situations and 10–21 days in calmer markets; set enough time for any specialty inspections you may need.
Do sellers still have to disclose problems if a home is sold as‑is in Nevada?
- Yes, sellers are expected to provide the SRPD and disclose known material defects, even when the property is marketed as‑is.
What happens if the appraisal comes in low compared to my Reno contract price?
- You and the seller can renegotiate, the seller can reduce price, or you can bring extra cash to cover the appraisal gap; your lender will not fund above the appraised value.
How much should I budget for closing costs in Washoe County?
- Many buyers estimate 2%–5% of the purchase price for closing costs, but your actual number depends on loan type, escrow and title fees, and any negotiated credits.
What does escrow do at closing in Washoe County?
- Escrow coordinates final signatures, collects and disburses funds, records the deed with the county, and then releases keys when recording is confirmed.
