No jargon, no spin. Just what these words actually mean when it is your house, your timeline, and your money on the table.
Selling a house comes with a vocabulary nobody teaches you, and some of the people using it are counting on you not knowing what it means. So here are the terms, defined straight, with links to the guides that go deeper. Everything is general information, not legal advice; in Illinois an attorney at closing is standard practice, and your own attorney is the right person to confirm how any of this applies to your sale.
After Repair Value is what a house would sell for once it is fully renovated and back in retail condition, estimated from recent sales of comparable homes nearby. It is the starting number every cash buyer works backward from: subtract the repair cost, the resale costs, and the buyer's profit, and what remains is the cash offer. ARV is not what your house is worth today, and a buyer who quotes only the ARV without subtracting anything is not making you an offer. See exactly how the number gets built on how we make offers.
An appraisal is a licensed appraiser's professional opinion of a home's market value, usually ordered by a mortgage lender to confirm the house is worth what a financed buyer agreed to pay. It is one of the slow steps a cash sale removes entirely, since a cash buyer brings no lender and orders no appraisal. Do not confuse an appraisal with a cash buyer's walkthrough: the first protects a bank, the second prices the condition and repair scope. If a low appraisal has already killed a financed deal, a cash route sidesteps that risk.
Selling as-is is a contract term about condition: the buyer agrees to take the property in its current state, and the seller agrees to fix nothing and credit nothing. It does not waive your Illinois disclosure duties, and it does not automatically mean the buyer skips an inspection. As-is kills the exhausting post-inspection renegotiation, not your obligation to be honest about defects you actually know of. Read the full breakdown, including the disclosure rules that still apply, in what an as-is sale really means.
Assessed value is the number your county assigns your property for tax purposes, often on a cycle and using formulas that lag the real market. It drives your property-tax bill, not your sale price. Sellers sometimes anchor on it, but assessed value can sit well above or below what a buyer will actually pay, which is set by recent comparable sales. When you weigh an offer, compare it against fair market value and your net proceeds, not the assessor's figure.
A cash buyer purchases a home without a mortgage, using their own funds, which removes the lender, the appraisal, and the underwriting timeline that stretch a normal sale to 30 to 45 days. Most cash buyers of distressed or dated houses are local investors and landlords who buy as-is and price in the repairs. Fair Home Cash does not itself purchase houses; it connects homeowners with independent cash buyers. See how the cash route stacks up against listing in cash buyer vs. realtor.
Cash-for-keys is an agreement where an owner or lender pays an occupant, often a tenant or a former owner after foreclosure, a lump sum to move out voluntarily and leave the property clean, instead of pursuing a formal eviction. It is faster, cheaper, and less adversarial than court, and it is common when a property changes hands with someone still living in it. If you are selling with renters in place, the mechanics are covered in selling a house with tenants.
The chain of title is the complete history of ownership for a property, each transfer linking the current owner back through every prior one. A title company traces it during the title search to confirm the seller truly owns what they are selling and that no past gap, forgery, or missing signature clouds the transfer. A broken chain, such as a deceased owner never formally removed from the deed, is one of the most common reasons a fast closing slows down until it is fixed.
Closing costs are the fees paid to complete a sale: title, escrow, recording, transfer taxes, and, on a listed sale, agent commission. On a traditional sale a seller can lose a meaningful share of the price to them. In a typical cash sale to an investor, the buyer covers most or all of these, so the offer you accept is closer to what you actually receive. The full itemized comparison, a cash sale against a standard listing, is on how we make offers.
A cloud on title is any unresolved claim, lien, or defect that casts doubt on clear ownership: an old mortgage never released, an heir who never signed off, a recorded judgment. It does not always stop a sale, but it must be cleared or resolved before a buyer can take clean title, which is exactly what the title search is designed to surface. Clouds are usually fixable; the real question is how many days it takes. Compare title defect and lien.
Comparable sales, or comps, are recent sales of similar nearby homes used to estimate what a property is worth. Location, size, condition, and how recently each sold all matter, which is why a single block can tell a very different story than a zip-code average. A fair buyer shows you the specific addresses behind their number; a lowballer hides behind a broad average. Comps set the ARV that every cash offer works backward from. See real comps in action on how we make offers.
A contingency is a condition written into a purchase contract that must be met or the deal can fall through without penalty. Common ones are financing, appraisal, inspection, and the sale of the buyer's current home. Each contingency is a place the sale can die. A defining feature of a cash offer is that it carries fewer of them, no financing contingency and no appraisal contingency, which is a large part of why cash closings are more certain and faster than financed ones.
A deed is the legal document that transfers ownership of real estate from seller to buyer. It is signed at closing, then recorded with the county to make the transfer public and official. Different deed types carry different guarantees: a warranty deed promises clear title, while a quitclaim deed transfers only whatever interest the signer happens to have. Do not confuse the deed, which proves ownership, with the mortgage, which is the loan recorded against the property.
A deed in lieu of foreclosure is an arrangement where a borrower voluntarily signs the property over to the lender to satisfy the loan and avoid a formal foreclosure. It can be less damaging to credit than a completed foreclosure, but the lender does not have to accept it, and it is rarely the only option. Selling the house, even quickly for cash, can leave you any equity above the loan balance, which a deed in lieu does not. If a foreclosure clock is running, map your timeline first with the Illinois foreclosure deadline calculator.
Earnest money is a good-faith deposit a buyer puts down when a contract is signed to show they are serious, typically held by the title company or an escrow agent, not the seller. If the sale closes, it is credited toward the purchase. If the buyer walks away for a reason the contract does not allow, the seller may keep it. A buyer willing to post earnest money is signaling real commitment, which matters when you are weighing which offer is actually likely to close.
An encumbrance is any claim or restriction on a property that can affect its transfer or value, including liens, mortgages, easements, and unpaid taxes. Not every encumbrance blocks a sale: a mortgage gets paid off from the proceeds, and an easement may simply travel with the land. The title search exists to find them all so nothing surfaces after closing. Money encumbrances like liens and back taxes are typically settled out of your sale proceeds by the title company.
Equity is the share of your home you actually own: the market value minus everything owed against it, including the mortgage balance, liens, and back taxes. It is the number that matters most when deciding whether to sell, because it is roughly what you could walk away with. A house can have little or even negative equity if the debts approach or exceed its value, which is when a short sale enters the picture. Estimate what a cash sale would net you with the cash offer estimator.
Escrow is a neutral third-party arrangement, usually run by a title or escrow company, that holds money and documents until every condition of the sale is met. It is why you never wire funds directly to a buyer and never bring money to a cash closing: the escrow agent pays off liens and taxes, disburses your proceeds, and records the deed, all according to the signed contract. Escrow protects both sides by making sure nobody has to trust the other with the money.
Fair market value is the price a willing buyer and willing seller would agree on, neither under pressure, with the house exposed to the open market for a reasonable time. It is an estimate anchored by comparable sales, not a fixed number. A cash offer is intentionally below fair market value, because it trades some price for speed, certainty, and zero repairs or fees. Whether that trade is worth it is arithmetic: compare the cash number against your realistic net proceeds from listing, not against the full market value.
For Sale By Owner, or FSBO, means selling your house yourself without a listing agent, saving the listing-side commission but taking on the pricing, marketing, showings, negotiation, and paperwork alone. It can work for a clean, move-in-ready home and a patient seller. It tends to struggle with distressed properties and tight timelines, where the buyer pool narrows fast. The trade-offs against a cash sale, the costs, the timelines, and the work each route asks of you, are laid out in FSBO vs. cash buyer.
Foreclosure is the legal process a lender uses to take and sell a property when the borrower falls behind on the mortgage. In Illinois it runs through the courts and unfolds over months, with defined stages, notices, and deadlines, not overnight. Falling behind does not mean you have already lost the house, and selling before the sale date can preserve equity a completed foreclosure would wipe out. See how much time the stages leave with the Illinois foreclosure deadline calculator, and the sale options in stopping foreclosure in Illinois.
Homestead rights are legal protections that give a homeowner, and often a spouse, an interest in their primary residence. In practice for sellers, this is why in Illinois a spouse may need to sign the deed even when they are not named on the title. Missing that signature is a classic reason a closing stalls at the last minute. Identifying every required signer before you sign a contract, spouse included, is one of the simplest ways to keep a fast sale on schedule.
An iBuyer is a technology company that makes fast, algorithm-driven offers on homes, then resells them. iBuyers advertise as-is convenience, and it is real, but inside a narrow box: newer, standardized houses in good condition. Major-systems problems, fire or foundation damage, and older city housing stock usually get declined outright or hit with steep fee-and-adjustment deductions. They are one of five routes weighed honestly in how to sell your house fast.
A judgment lien is a claim attached to your property because a court ruled you owe someone money, whether a creditor, a contractor, or an ex-spouse. It does not stop a sale by itself, but it must be paid or released before you can pass clean title, and it is typically settled out of your proceeds at closing by the title company. Judgment liens are one of the encumbrances a title search is designed to surface early, before they can delay a closing.
A lien is a legal claim against your property for a debt, giving the creditor a right to be paid from the proceeds when you sell. Mortgages, back property taxes, unpaid contractors (mechanic's liens), court judgments, and municipal fines can all create one. Liens do not prevent a sale; they get paid off at closing from what the buyer pays, and you keep whatever is left. What slows a closing is waiting on payoff letters, which is why naming every debt early helps. See also judgment lien and encumbrance.
Lis pendens is Latin for suit pending, a public notice recorded against a property to warn that a lawsuit affecting its title is underway, most commonly a foreclosure. It does not transfer ownership or end your rights; it signals that a case is in motion and puts future buyers on notice. A property under lis pendens can still be sold, but the underlying claim must be resolved or paid off through closing. If yours stems from foreclosure, the foreclosure deadline calculator shows where you stand.
Motivated seller is investor shorthand for an owner who needs to sell quickly, because of foreclosure, an inherited property, a divorce, a job move, or a house that has become a burden. The label is neutral, but it is worth knowing that some buyers use it as a cue to press for a lower price. A written offer with the math attached is your defense: it lets you judge any number on its merits rather than on how much pressure you are under. Compare offers using how we make offers.
Net proceeds are what you actually walk away with after a sale: the price minus everything that comes out of it, including loan payoff, liens, back taxes, commission, closing costs, and any repairs you fronted. It is the only number that matters when comparing routes, because a higher headline price can net less than a lower one once the deductions land. Always weigh a cash offer against your realistic net from listing, not against the list price. Estimate yours with the cash offer estimator.
Probate is the court-supervised process of settling a deceased person's estate: validating the will, appointing someone to act, paying debts, and authorizing transfers of property. If you inherited a house and the owner did not leave it in a trust or a transfer-on-death instrument, an Illinois court usually must authorize the sale before anyone can sign a deed, which takes months, not days. Once letters of office are issued, the sale itself can move at cash speed. The full walkthrough is in selling a house in probate and selling an inherited house in Illinois.
Proof of funds is documentation, usually a recent bank statement or a letter from a financial institution, showing a buyer actually has the cash to complete a purchase. It is the cash-sale equivalent of a mortgage pre-approval, and asking for it is one of the fastest ways to separate a real cash buyer from someone who plans to find the money later or assign your contract to a third party. A serious buyer provides it without drama. See also wholesaler.
A quitclaim deed transfers whatever ownership interest the signer has in a property, with no guarantee that the interest is clear or even exists. It is common between family members, divorcing spouses, or to fix a name on title, but it offers a buyer none of the protections of a warranty deed. Because it makes no promises about title, a quitclaim is not usually how an arm's-length sale to an outside buyer is completed. Compare it with the general deed entry.
A redemption period is a window, set by state law, during which a borrower can reclaim a property in foreclosure by paying what is owed, and the exact length and rules vary by state and situation. It is one reason foreclosure is a process with defined stages rather than a single event. Understanding where you are in that timeline tells you how much room you still have to sell on your own terms and protect your equity. Map the Illinois stages and deadlines with the Illinois foreclosure deadline calculator.
A short sale is when a lender agrees to let you sell the house for less than the mortgage balance and accept the proceeds as settlement. It applies only when you owe more than the home is worth, and it requires the lender's approval, which takes time and paperwork. It is not the same as a fast cash sale, and it is only relevant when there is little or no equity. If you do have equity, selling normally, even quickly, usually serves you better than a short sale.
A title company is the neutral, licensed business that makes a sale safe: it runs the title search, issues title insurance, holds the money in escrow, pays off liens and taxes from the proceeds, records the deed, and disburses your net to you. It answers to the signed purchase contract, not to either party, which is why you never wire money to a buyer. On a cash sale the title company does most of the real work of the closing week.
A title defect is any flaw in the ownership record that can block or unwind a clean transfer: a forged signature, an unreleased old mortgage, a misspelled name in a past deed, an unknown heir, or an unpaid contractor's lien. Most are fixable within days once found, which is why the title search starts the moment a contract is signed. Undiscovered title defects are the single most common reason a 7-day closing becomes a three-week one. Compare cloud on title.
A title search is the title company's examination of public records to confirm the seller owns the property free of undisclosed claims, tracing the chain of title and pulling tax and lien records. It is the real work behind a fast closing: cash removes the lender, but the title still has to be checked. Anything it surfaces, a lien, a missing signature, an old judgment, gets resolved or paid through closing. Starting it the day the contract is signed is what keeps a week a week.
A transfer-on-death instrument, sometimes called a TOD deed, lets an Illinois owner name who inherits their real estate automatically at death, passing the property outside probate. When one is in place, the named beneficiary can move to sell without waiting on a court, which can save months compared with a probate sale. If no such instrument or trust exists, the estate typically goes through probate first. The inherited-house specifics are covered in selling an inherited house in Illinois.
A property is under contract once a buyer and seller have both signed a purchase agreement but before the sale has closed. It is not a completed sale: contingencies, attorney review, title work, and funding still have to clear, and deals can and do fall apart in this window, most often over financing or title problems. A cash contract with proof of funds and few contingencies is far more likely to make it from under contract to closed than a financed one.
A wholesaler does not buy your house to keep it. They put it under contract at a low price and then sell that contract to another investor for a fee, so the person who signs with you may not be the person who ends up owning the home. This is legal and common, but it can mean an offer that gets renegotiated down, or delays while they hunt for an end buyer. Asking for proof of funds is the quickest way to tell a wholesaler from a funded cash buyer.
A written offer with the math attached, no fees, and the decision stays yours from the first call to the closing table.
Get a Cash Offer