Home Selling Glossary

Plain-English definitions of the terms you'll run into when selling a house in Milwaukee or anywhere in Wisconsin.

As-Is Sale

A real estate transaction where the seller makes no repairs and the buyer accepts the property in its current condition. Cash home buyers typically purchase as-is.

ARV (After-Repair Value)

The estimated market value of a home after all renovations are complete. Cash buyers price offers as a percentage of ARV minus repair costs.

Cash Offer

A purchase offer made without mortgage financing, eliminating appraisal and lender contingencies and allowing fast closings — often within 7–14 days.

Closing Costs

Fees paid at the close of a real estate transaction, including title insurance, transfer taxes, recording fees, and (in Wisconsin) the state real estate transfer fee of $3 per $1,000.

Comparable Sales (Comps)

Recently sold properties similar in size, condition, and location used to estimate a home's market value.

Contingency

A condition that must be met for a real estate contract to close — common contingencies include financing, inspection, and appraisal. Cash sales typically waive these.

Deed in Lieu of Foreclosure

An agreement where a homeowner voluntarily transfers the property to the lender to avoid foreclosure proceedings.

Earnest Money

A deposit made by a buyer to demonstrate good faith. Returned at closing or forfeited if the buyer breaches the contract.

Equity

The difference between a home's market value and the amount owed on any mortgages or liens against it.

Foreclosure

Wisconsin's legal process by which a lender repossesses a home when the borrower defaults. Wisconsin uses judicial foreclosure, which typically takes 9–12 months.

Lis Pendens

A public notice filed at the county recorder's office indicating a lawsuit affecting the title to a property — often the first official step in a Wisconsin foreclosure.

Lien

A legal claim against a property for an unpaid debt — including mortgage liens, tax liens, mechanic's liens, and HOA liens. All liens must be satisfied at closing.

Off-Market Sale

A property sold without being publicly listed on the MLS. Most cash sales are off-market.

Pre-Foreclosure

The period after a homeowner has missed payments and a lis pendens has been filed but before the sheriff's sale. Homeowners can still sell during this window.

Probate

The court-supervised legal process of administering a deceased person's estate, including transferring real property to heirs. Wisconsin probate typically takes 6–12 months.

Proration

The division of recurring property charges (taxes, HOA dues) between buyer and seller based on the closing date.

Sheriff's Sale

Wisconsin's public auction of a foreclosed property at the county sheriff's office, marking the final step of foreclosure.

Stepped-Up Basis

A federal tax provision that adjusts the cost basis of inherited property to its fair market value at the date of death — often eliminating capital gains tax for heirs who sell quickly.

Title Insurance

Insurance protecting against losses from defects in the property title (e.g., undisclosed liens, ownership disputes).

Transfer Fee (Wisconsin)

Wisconsin's real estate transfer fee of $3 per $1,000 of sale price, typically paid by the seller. Reputable cash buyers cover this fee.

Wholesaler

A middleman who puts a property under contract and assigns the contract to an end buyer — they don't actually buy your home. Different from a true cash buyer.