Detroit, Decoded

A licensed appraiser's independent estimate of a home's value, usually ordered by the lender to confirm the sale price is supported before they'll fund a mortgage.

A deposit the buyer puts down after an offer is accepted, showing they're serious. It gets credited toward closing costs if the sale goes through.

A neutral third party — usually a title company — that holds money and documents until every condition of the sale is met, then releases them.

A one-time policy that protects the buyer and lender against problems with the property's ownership history — an old lien, a forged signature, an heir nobody accounted for.

Recently sold homes similar in size, age, and location, used to estimate what a property is actually worth right now.

Pre-qualification is a lender's quick estimate based on what a buyer tells them. Pre-approval means the lender has verified income, credit, and assets — it carries real weight with a seller.

A clause giving the buyer a set window to have the home inspected and, depending on what's found, renegotiate, request repairs, or walk away with their deposit intact.

Money the seller agrees to put toward the buyer's closing costs, often used to bridge a gap instead of lowering the sale price outright.

How long a listing has been active. In a fast-moving pocket, a high DOM can be a signal worth asking about.

More than one buyer submits an offer around the same time, which can shift terms — price, closing date, contingencies — in the seller's favor.

The seller won't make repairs or credits based on inspection findings. It doesn't mean skip the inspection — it means know what you're taking on before you commit.

A financing arrangement where the seller acts as the lender: the buyer makes payments directly and doesn't get the deed until the contract is paid off.

The buyer's agent represents the buyer's interests; the listing agent represents the seller's. Each owes their loyalty to a different side of the table.

One agent, or brokerage, represents both the buyer and seller in the same deal. Michigan allows it with informed consent, but it changes how much either side gets advocated for.

A group that manages shared spaces and rules for a condo or planned community, funded by dues that are worth budgeting for separately from the mortgage.

Under contract means an offer's accepted but contingencies are still being worked through; pending means those have cleared and the deal's headed to closing.

The schedule by which a mortgage gets paid down over time. Early payments go mostly toward interest; later ones shift toward principal.

Extra insurance a lender requires when a buyer puts down less than 20%, protecting the lender — not the buyer — if the loan defaults.

The final breakdown of loan terms and closing costs, which by law has to be in the buyer's hands at least three days before closing.

The lender's confirmation that every underwriting condition is satisfied and the loan is ready to fund.

The lender's behind-the-scenes review of a buyer's finances and the property itself, weighing the risk of the loan before it's approved to fund.

The difference between the agreed sale price and a lower appraised value. A buyer either covers the gap in cash, renegotiates, or the deal can fall apart if the contract allows it.

A condition written into an offer that has to be satisfied for the sale to move forward — financing, inspection, and appraisal are the most common.

A provision in an offer that automatically raises the buyer's price by a set increment to beat any competing offer, up to a stated ceiling.

A written agreement, now standard practice nationwide, spelling out how a buyer's agent is compensated and what services they provide before showings begin.

A scam where a criminal intercepts email between buyer and title company to redirect closing funds to a fraudulent account. Always confirm wiring instructions by phone, using a number you already had — never one from the email itself.

A service contract, separate from homeowners insurance, that covers repair or replacement of major systems and appliances for a set term after closing.

An arrangement where the seller stays in the home and pays the buyer rent for a period after closing, often used to align a seller's move-out with their next purchase.

A tax provision letting an investor defer capital gains tax by rolling proceeds from a sold property directly into a new one, under strict timing rules.

Upfront money — from the buyer, seller, or lender — paid to lower a mortgage's interest rate, either for the life of the loan or for its first year or two.

A home being sold directly by its owner without a listing agent. A buyer's agent can still represent the buyer's side even when the seller is unrepresented.

A sale where the price is less than what's owed on the mortgage, requiring the lender's approval of the shortfall before it can close — often a slower process than a standard sale.

A property owned by a bank or lender after it failed to sell at foreclosure auction, typically sold as-is through a standard listing.

A worksheet estimating what a seller will actually walk away with after commissions, closing costs, and payoffs are subtracted from the sale price.

A legal right for someone other than the owner to use part of a property for a specific purpose — a shared driveway or a utility line are common examples in older neighborhoods.

When a structure — a fence, a garage, an overhanging eave — sits over a property line onto a neighbor's land, usually surfaced by a survey.

A provision letting a seller keep marketing the home while under contract with a buyer whose offer is contingent on selling their own home first — if a better offer comes in, the original buyer gets a window to remove their contingency or step aside.

The share of a borrower's monthly income that goes toward debt payments, one of the core numbers a lender uses to decide how much they'll lend.

A grant, loan, or forgivable second mortgage that helps cover a buyer's down payment or closing costs, often income-restricted and offered through the city, state, or a nonprofit.

Michigan's required form where a seller discloses known defects and conditions. It's mandatory for most sales but exempt for foreclosures, probate transfers, and land contracts — worth knowing which situation you're in.

A state and county tax on the sale price, paid at closing. In Michigan it's customary for the seller to pay it, though the contract can specify otherwise.

Two different ways a homeowners policy can pay out a claim: replacement cost covers what it takes to rebuild today, actual cash value subtracts depreciation. The gap between them can be significant on an older home.

FEMA's classification of a parcel's flood risk, which determines whether a lender requires separate flood insurance — worth checking directly rather than assuming, since standard homeowners policies don't cover flood.

A drawn record of a parcel's exact boundaries, structures, and easements. Older Detroit lots don't always have a recent survey on file, which can matter when a fence or garage sits close to the line.

A clause giving a specific party — often a tenant or a family member — the option to match any offer before the owner can sell to someone else.

Short-term financing that lets a buyer use equity in their current home to fund a new purchase before the old one sells.

A loan a buyer can take over from the seller at its existing rate and terms, subject to lender approval — a real advantage when the seller's rate is well below current market rates.

A revolving credit line secured by a home's equity, often used to fund renovations — distinct from refinancing since the original mortgage stays in place.

A fixed rate stays the same for the life of the loan; an adjustable rate starts lower and can move up or down after an initial period, tied to a market index.

An accepted-in-line offer that only activates if the primary deal under contract falls through — a way to stay in the running without displacing the current buyer.

A sale of property from an estate after the owner's death, often requiring court approval and running on a slower timeline than a standard transaction.

A condition making a buyer's purchase dependent on successfully selling their current home first — one of the terms a seller weighs most carefully in a competitive market.

An early-1900s electrical system using ceramic knobs and tubes to route wires through walls. It's not automatically dangerous, but it has no ground wire and most insurers want it replaced.

Common in homes wired in the 1960s-70s, it expands and contracts more than copper, which can loosen connections over time. Insurable, but often flagged for a licensed electrician to inspect.

Steel water pipe with a zinc coating, standard in Detroit homes built before the 1960s. The zinc corrodes from the inside over decades, narrowing the pipe and restricting water pressure.

Flexible plastic tubing that's replaced copper and galvanized pipe in most modern repiping work — cheaper, faster to install, and doesn't corrode.

The original waste piping in most pre-1960s Detroit homes. It's durable but corrodes from the inside out, and a sewer scope is the only real way to see its condition.

A camera run through the home's sewer lateral to check for cracks, root intrusion, bellies, or old materials. Standard practice for older Detroit homes.

A wood-pulp-and-tar sewer pipe used roughly from the 1940s through the 1970s in place of cast iron during a metal shortage. It deforms and collapses with age and is a common find on a sewer scope.

A pump installed in a basement pit to move groundwater out before it floods the space, common where the water table sits high or drainage is poor.

A valve that stops water from flowing in the wrong direction, keeping wastewater from being pulled back into the clean water supply.

The pipe carrying water from the street main into the home. In older housing stock this is sometimes lead, and Detroit residents can check their service line material through the city.

The shutoff valve for a home's water service, located near the curb or property line, operated by the water department rather than the homeowner.

A single pipe network carrying both sewage and stormwater, common in older Detroit infrastructure. In heavy rain, these systems can back up into basements.

An older wood-framing method where wall studs run uninterrupted from foundation to roofline. It's structurally fine but lets fire and sound travel between floors more easily than modern framing.

The original wall system in most pre-1950s Detroit homes: wood or metal strips (lath) covered in layered plaster, instead of drywall.

A short wall, usually under five feet, that separates a room from unfinished attic space — common in Detroit's Cape Cods and bungalows.

An older heating system that circulates steam or hot water through radiators instead of blowing air through ducts, common in pre-war Detroit homes.

A protective interior lining in a chimney flue. Many older Detroit chimneys were never lined, which matters if the furnace or fireplace is still vented through it.

A material installed to block moisture from moving through walls, floors, or crawlspaces — its absence or failure is a common cause of basement dampness in older housing.

Detroit homes sit on a mix of poured concrete, concrete block, and older fieldstone foundations, each with different failure points and repair costs.

An outlet that shuts power off instantly if it senses a ground fault, required near water sources like kitchens and bathrooms — a common item on inspection reports for older homes that never had them added.

Older brands of electrical panel known for breakers that can fail to trip during an overload. Not automatically a dealbreaker, but frequently flagged for replacement by inspectors and insurers alike.

The amount of electrical load a home's service can safely handle. Many older Detroit homes were built with 60-amp service, which often needs upgrading to 100 or 200 amps to support modern appliances, central air, or an EV charger.

Wood-destroying insect activity, usually flagged during inspection by soft or hollow-sounding wood, mud tubes, or discarded wings — worth a separate pest inspection on older homes with wood-framed porches or sills.

The white, chalky mineral residue left on basement walls or brick after water has moved through the masonry and evaporated. It's a moisture indicator, not damage itself, but it means water found a way in.

Repairing or replacing the mortar joints between bricks. On a century-old Detroit home, deteriorating mortar is often a bigger structural concern than the brick itself.

Older low-slope roofing materials common on additions, porches, and flat-roofed sections of Detroit homes, with a shorter lifespan than standard shingle roofing and its own repair vocabulary.

A rear addition common on older Detroit homes, originally used for canning, laundry, or overflow cooking — today often converted into a mudroom, pantry, or extra half-bath.

A ridge of ice that forms at a roof's edge when heat escapes unevenly through the attic, melting snow that then refreezes and backs up under the shingles — a frequent source of winter leaks in poorly insulated older attics.

The curved section of drain pipe under a sink or fixture that holds standing water to block sewer gas from entering the home. A dry trap under a rarely used fixture is a common source of odd smells.

The pipe that runs up through the roof to let sewer gas escape and air into the drain system so water flows properly — missing or blocked venting shows up as gurgling drains.

The banging noise pipes make when a valve shuts suddenly and stops moving water abruptly. Usually fixed with an air chamber or hammer arrestor rather than anything structural.

A small tank installed near a water heater to absorb pressure as heated water expands, often required by code when a home has a closed plumbing system.

A pipe-and-fan setup that vents radon gas from beneath a foundation before it can seep into the home. Michigan basements test for elevated radon often enough that it's a routine ask.

A perforated pipe buried around or under a foundation to collect groundwater and direct it to a sump pump, a common basement waterproofing fix in older homes.

When the ground slopes toward a house instead of away from it, directing rainwater straight at the foundation. Often the real cause behind a "wet basement," and sometimes the cheapest one to fix.

Paired attic ventilation points — soffit vents pull air in at the roof's edge, the ridge vent lets it out at the top — that work together to keep an attic from trapping heat and moisture.

The professional removal or sealing of asbestos-containing materials — old pipe insulation, floor tile, or siding — commonly found in Detroit homes built before the 1980s and regulated when disturbed during renovation.

R-value measures how well insulation resists heat flow. Many Detroit attics still rely on thin, decades-old batt insulation, and topping it up with blown-in or spray foam is one of the highest-return upgrades on an older home.

Original roofing material on many of Detroit's grander older homes. It can last a century or more, but repairs require a specialist and cost considerably more than asphalt shingle work.

Original single-pane windows found in most pre-war Detroit homes. Restoring them with weatherstripping and a storm window is often more cost-effective and better for a historic home's character than full replacement.

Leftover features from a home's earlier life — a small exterior door once used to deliver coal, a mini elevator for moving food between floors, a cold-storage room off the basement. Harmless, occasionally confusing, and part of what makes an older Detroit basement interesting.

A fuse box uses replaceable fuses that burn out; a breaker panel uses resettable switches. Many older Detroit homes still have the original fuse box, which insurers and lenders often want upgraded before closing.

A tank unit stores and reheats a set volume of water; a tankless unit heats water on demand with no storage tank. Tankless costs more upfront but takes up less space and doesn't run out mid-shower.

The valve inside the home, usually in the basement, that a homeowner can turn to stop all water flow — distinct from the curb stop, which belongs to the water department.

Any point where a clean water line could connect to a contaminated source — an outdoor hose without a vacuum breaker is a common example — which is why backflow prevention matters.

A four-sided roof style with a steep lower slope and a flatter upper slope, giving extra usable attic space — seen on some of Detroit's older, grander homes and apartment buildings.

Two of the most common house styles across Detroit's older neighborhoods — the Dutch Colonial's gambrel roof and the American Foursquare's boxy, symmetrical shape are both easy to spot once you know what you're looking at.

A shared wall between two attached structures, like a duplex or rowhouse — repairs and modifications often require agreement from both owners since the wall serves both properties.

A window large enough for someone to escape through in an emergency, required by code for any basement bedroom — a frequent gap in older Detroit basements finished without one.

Hairline, vertical cracks from normal settling are common and rarely concerning in a century-old home. Wide, horizontal, or stair-step cracks are the kind worth having a structural engineer look at.

Reinforcing a weakened floor or ceiling joist by bolting a new piece of lumber alongside it, rather than replacing the whole joist — a common, cost-effective fix in older framing.

Shorthand locals use for Detroit itself, not a neighborhood.

The string of cities south of Detroit along the Detroit River — Wyandotte, Lincoln Park, Southgate, Trenton, and others.

Anywhere north of the Detroit metro area, usually meaning Northern Michigan cabin or lake country, not a specific place.

Shorthand for the Grosse Pointes, the string of communities along Lake St. Clair just east of the city.

Woodward Avenue, the main artery running from downtown through Midtown, New Center, and out to the northern suburbs — also how Detroiters organize "east side" versus "west side."

Both a literal road and the informal line locals use to talk about city versus suburb.

Refers to East or West Grand Boulevard, older Detroit streets that once marked the city's outer edge before it kept growing.

A Detroit-style hot dog with chili, mustard, and onion, and shorthand for the diners that serve them. "Meet me at the coney" is a real sentence here.

The Renaissance Center, GM's headquarters and one of the most recognizable buildings on the riverfront skyline.

Gratiot, Grand River, Michigan, and Woodward all cut across Detroit's grid at an angle, following old trails — locals just call them "the diagonals."

The dense stretch of 1920s bungalows that rings much of the city, built fast during Detroit's auto-boom population surge.

Our own term for Detroit's classic older housing stock — a modest, well-built early-1900s home, often owned for decades by one family, usually needing a mechanical update but structurally solid.

The night before Halloween, historically associated with arson in Detroit during the 1970s-90s. Decades of "Angels' Night" volunteer patrols brought the fires down dramatically, and it's a quiet night today.

Old nicknames some longtime residents still use for parts of the Cass Corridor and the old Tiger Stadium neighborhood, respectively.

Spelled two different ways, always pronounced "MACK-in-aw" — the bridge, the island, and the city all share the sound but not the spelling, and getting it wrong is a fast way to out yourself as new to Michigan.

What Detroiters call soda. Ordering a "coke" and meaning any carbonated drink will get you a confused look here.

Shorthand for a specific commercial strip when the neighborhood name is understood from context — the Cass Corridor, the Livernois Corridor, and others each get called simply "the corridor" by people who work there.

The nickname for the Livernois Avenue business corridor between 7 Mile and 8 Mile, historically known for boutiques and now a focal point of the neighborhood's revitalization.

The Upper Peninsula and the people from it — worlds away from Detroit culturally and geographically, but still very much part of how Michiganders identify each other.

Used on its own, usually means Indian Village, one of Detroit's grandest historic neighborhoods — context tells you which "village" someone means.

What Michiganders call their own state, thanks to its shape — also how locals point to their exact hometown by holding up a hand.

Detroit's oldest surviving neighborhood, named for its original Irish immigrant population, now known for its restaurant scene and the old Tiger Stadium site nearby.

The southwest Detroit neighborhood centered on Bagley Street, long the heart of the city's Mexican and Latino community and food scene.

The historic public market district near downtown, home to a Saturday farmers market that's been running for over a century and the surrounding wholesale food businesses.

The 982-acre island park in the Detroit River, now operated as a Michigan state park, with the conservatory, the aquarium, and the beach all counted as local landmarks.

An independent city entirely surrounded by Detroit, historically Polish and today one of the most ethnically diverse cities in the country per capita — locals just call it "Ham-TRAM-ick."

Short for "Motor Town," originally the record label and now used as a nickname for the city itself, especially in a musical or cultural context.

The regional traffic pattern where drivers can't turn left directly at a divided-road intersection — instead you go past it, U-turn at a median crossover, then come back. Disorienting for visitors, second nature to anyone who's lived here a year.

What Michiganders call a corner convenience store or liquor store — no party required.

The Detroit-founded pop brand — Redpop and Rock & Rye are the classics — that's practically shorthand for local pride.

Three distinct districts strung along Woodward that outsiders often lump together — Downtown is the riverfront business core, Midtown sits around the museums and Wayne State, and New Center is the historic office district a bit further north, anchored by the Fisher and Cadillac Place buildings.

The cluster of East Side historic neighborhoods — West Village, Islandview, and others — known collectively by this name, distinct from Indian Village specifically.

The Detroit-invented ginger ale, one of the oldest soft drink brands in the country and still a local point of pride alongside Faygo.

A rectangular, thick-crust pizza baked in a steel pan with the cheese to the edges and sauce striped on top — a distinct regional style, not just "deep dish by another name."

A historically Polish neighborhood on the city's east side, much of it demolished in the 1980s for a GM plant — still referenced by longtime residents and in city planning conversations.

Shorthand for Ford, General Motors, and Chrysler (now Stellantis) — the automakers whose fortunes have shaped this city's economy and housing patterns for over a century.

Detroit's east-west streets are numbered by their distance from downtown — 6 Mile, 7 Mile, 9 Mile, and so on — so locals often give directions and describe neighborhoods by mile number rather than street name.

In Michigan, a home's taxable value resets to match its assessed value the year after it sells. On an older Detroit home that hasn't sold in decades, that first post-sale tax bill can jump substantially — budget for it before you buy, not after.

A Michigan exemption that removes the local school operating tax from a home you occupy as your primary residence, usually a meaningful line-item savings. It has to be filed for — it isn't automatic.

A Detroit-specific tax abatement for qualifying homes, new construction, or rehabs in designated zones, which can significantly lower the tax bill for a set number of years. Worth checking before assuming a low listed tax amount will carry forward.

The city entity that holds and sells thousands of vacant, tax-foreclosed, and city-owned properties. Buying from the Land Bank comes with its own process, deed restrictions, and rehab timelines, distinct from a standard resale.

A fee on Detroit water bills tied to how much impervious surface — driveway, roof, patio — sits on a parcel, separate from the water and sewer charges themselves.

Detroit requires most rental properties to pass a city inspection and register before they're legally rented, a step investors sometimes miss when buying with tenants in place.

The office where property transfers, mortgages, and liens for Detroit properties get officially recorded — worth checking directly when a title history matters.

Detroit has dozens of designated historic districts — Boston-Edison, Indian Village, Woodbridge, and more — where exterior changes go through a review commission, a real factor if a buyer's planning renovations.

An outstanding city citation tied to a property's condition, which can attach to the parcel and needs to be resolved, sometimes discovered mid-transaction.

Michigan taxes owner-occupied ("homestead") property at a lower rate than rental or second homes — another reason the tax bill on a listing may not match what a new owner-occupant will actually pay.

Land contracts are more common in Detroit than in many markets, often used where traditional financing is hard to get on lower-priced or distressed properties — buyers should understand they don't hold the deed until the contract's paid off.

Because so much of Detroit runs on a combined sewer system through older clay, cast iron, or Orangeburg lateral pipe, a sewer scope is one of the highest-value inspections a Detroit buyer can order.

Detroit's Homeowners Property Exemption program, which can reduce or eliminate property taxes for qualifying low-income owner-occupants — worth knowing about even as an agent, since it comes up with sellers and heirs of long-held family homes.

Detroit has a high share of homes passed down informally within families without a will or formal probate. These "heir properties" often need a title company to untangle ownership before a sale can close clearly.

Wayne County's annual process for seizing and auctioning properties with unpaid taxes. Worth checking a property's tax status directly — back taxes can follow a parcel in ways that surprise a new buyer.

Detroit's ongoing, city-run program to replace lead water service lines, often at no direct cost to the homeowner when the city does the work. Worth asking whether a specific address has already been done or is scheduled.

Detroit's zoning code determines what a parcel can legally be used for — single-family, duplex, mixed-use, and so on — which matters a great deal for anyone eyeing a property for a rental conversion or a second unit.

A now-legacy Michigan tax-abatement designation covering certain Detroit parcels, distinct from an NEZ — a term still worth recognizing when it shows up on an older tax record.

Detroit requires vacant properties to be registered and secured, with ongoing fees for owners who leave a home sitting empty — a real carrying cost to factor into any rehab timeline.

The 1994 Michigan constitutional amendment that caps how much a home's taxable value can rise each year while it's owned by the same person — the reason a longtime owner's tax bill and a new buyer's tax bill on the same house can be so different.

The tax rate applied per $1,000 of a property's taxable value, set by a combination of city, school, county, and other local levies — Detroit's combined rate is one of the higher ones in the state.

The local body homeowners can petition to dispute their property's assessed value each year — the formal route for correcting an assessment that looks too high.

An additional charge added to a property tax bill to fund a specific local improvement — a new sidewalk, streetlights, a paving project — tied to the parcel rather than the general tax rate.

A lawsuit filed to resolve competing or unclear claims to a property's title — common on Detroit homes with a tangled ownership history, tax-foreclosure past, or missing heirs.

A reduced, negotiated payment that stands in for regular property tax, typically attached to income-restricted or nonprofit-developed housing — worth knowing if a property or building has one attached.

Most Detroit tax records split a parcel's assessed value into land and structure. On blocks where many homes have been demolished, the land-to-improvement ratio can shift fast and is worth a second look.

A Detroit Land Bank and Rocket Community Fund program that fully renovates select homes before listing them for sale, aimed at setting stronger comps and reducing blight in target neighborhoods.

A City of Detroit program offering interest-free loans to qualifying homeowners for major repairs — roofs, furnaces, electrical — worth knowing about for clients who own but are stretched on renovation costs.

A Great Lakes Water Authority program helping income-qualified residents with water bill assistance and debt relief — relevant for a buyer taking on a home with back water charges attached to the account.

The city's sign-off that a new construction project or major rehab meets code and is legally safe to occupy — required before a lender will fund a purchase or a buyer can legally move in.

State and federal tax credits for rehabilitating a certified historic property according to preservation standards — distinct from an NEZ or Renaissance Zone, and stackable with some of them depending on the project.

Detroit's Buildings, Safety Engineering and Environmental Department — the city office that issues permits, handles rental certification, and enforces property maintenance code.

A building permit that was pulled but never closed out with a final inspection, often left behind by a previous owner's unfinished project — worth checking for before buying, since it can complicate future work or a sale.

A records and site review checking for signs of soil or groundwater contamination, most relevant on parcels near Detroit's older industrial corridors or on former commercial sites.

The Michigan State Housing Development Authority's statewide down payment assistance program, widely used by Detroit buyers alongside city-specific programs — often paired with a required homebuyer education course.