Contingency: A condition that must be fulfilled before a contract becomes legally binding.
Contract: Binding agreement between the buyer and seller setting terms of the sale.
Counter Offer: Response that does not accept a price but instead changes one or more of the terms for an alternative deal.
Escalation Clause A method to increase the price a buyer will pay by increments when competing with another potential purchaser.
Insider Price: A purchase amount arrived at by formula that caps the amount certain privileged buyers are required to pay.
List Price: (also known as Asking Price) The amount the seller has publicly stated she is willing to accept.
Market Value: The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.