A purchase has stages, and each brings its own words. This glossary follows them in order, from pre-approval to closing, and adds a Coronado example where a term has a local twist.
Plain English
A Coronado Home Buyer’s Glossary
The terms you will meet, in the order you will meet them: before you shop, when you make an offer, under contract and at closing, with Coronado examples.
The terms at a glance
Appraisal · Base-year value (Proposition 13) · Closing costs · Coastal zone and coastal development permits · Contingency · Earnest money deposit · Escrow · HOA and CC&Rs · Market temperature · Mello-Roos (community facilities district) · Mills Act · Months of supply · Off-market (quiet) sale · Pre-approval · Proposition 19 · Supplemental tax bill · Transfer Disclosure Statement · Typical home value
Before you shop
- Pre-approval
- A pre-approval letter turns a hopeful budget into a documented one. It is good for a limited time, does not guarantee a loan, and is worth having before you make an offer.
- HOA and CC&Rs
- Buying into an HOA means agreeing to its rules and paying its dues. During escrow you receive the CC&Rs, the budget and the reserve study, and reading them can tell you a lot about the community’s health.
Local example: On the island, many condominium buildings and some communities have associations, so ask for the documents early. - Months of supply
- Divide homes for sale by monthly sales and you have months of supply. A market with a few months of inventory feels tight; one with many feels roomy.
Local example: In the week ending Sep 12, 2026, the San Diego metro area (San Diego–Chula Vista–Carlsbad) had 3.4 months of supply. - Typical home value
- Zillow’s index tracks the value of a typical home in an area’s middle third of prices, adjusted for seasons. It shows direction well and says little about any one house.
Local example: Zillow’s typical home value in Aug 2026 was $2,563,759 in ZIP 92118. - Coastal zone and coastal development permits
- In the coastal zone, a project may need a coastal development permit in addition to the usual building permit, issued by the city under its certified Local Coastal Program or by the Coastal Commission.
Local example: Coronado has a Local Coastal Program, so projects in the coastal zone can need a coastal permit. - Mills Act
- Under the Mills Act, an owner of a designated historic property can sign a preservation contract with the city in exchange for a lower tax assessment, subject to the city’s rules.
Local example: Coronado’s Community Development Department administers historic preservation and the Mills Act; ask the city whether a home is designated. - Mello-Roos (community facilities district)
- A special tax levied in a community facilities district to pay for infrastructure such as roads, schools and parks, usually in newer developments. It appears on the property tax bill and typically runs for a set number of years.
The San Diego County Assessor publishes information on Mello-Roos; ask whether the address is in a district. - Market temperature
- Zillow’s index of how quickly homes are selling in an area compared with its own history, from cold to hot. It helps compare one ZIP code with another.
Local example: ZIP 92118 read 41 in Aug 2026, against an average of 51 over the readings since 2018. - Proposition 19
- Proposition 19 (2020) lets homeowners who are 55 or older, severely disabled, or victims of a wildfire or other disaster carry their taxable value to a replacement home in California, and it narrowed the parent-child exclusion for family transfers.
Making an offer
- Earnest money deposit
- Shortly after the seller says yes, the buyer sends a deposit to escrow. It shows commitment, it is applied toward the purchase price at closing, and the contract spells out when the buyer could lose it.
- Contingency
- A way out written into the contract for defined reasons: the inspection finds a problem, the appraisal comes in low, the loan does not fund. Each has a deadline (the standard form often uses 17 days), and the buyer removes each one in writing when it is satisfied.
- Off-market (quiet) sale
- A home sold without being advertised publicly on the multiple listing service. Sellers who prefer privacy may choose it, and buyers hear about such homes through agents’ networks. The disclosures, inspections and escrow steps are the same.
Once you are under contract
- Escrow
- A neutral third party, usually an escrow company, that holds the buyer’s deposit and the signed documents, follows both sides’ written instructions and releases the money and the deed only when every condition has been met.
- Appraisal
- The lender’s independent opinion of what a home is worth, based on its condition and recent nearby sales. It protects the lender’s collateral, and when it falls short of the price the deal usually needs a renegotiation, more cash or a different loan.
- Transfer Disclosure Statement
- A form the seller completes to disclose known facts about the property’s condition, including repairs, defects and work done without permits. The buyer reads it alongside the inspection report.
Closing and owning
- Closing costs
- Closing costs are what it takes to finish the deal beyond the down payment: lender and appraisal fees, title and escrow charges, recording fees, and prepaid interest, taxes and insurance. Ask your lender for a Loan Estimate early.
- Base-year value (Proposition 13)
- When a home sells, the county assessor generally resets its taxable value to the price paid. From then on the taxable value grows by the inflation factor, capped at 2%, however fast the market moves. That is why two similar neighbors can pay very different property tax.
Local example: For a typical ZIP 92118 home at $2,563,759, the 1% base tax would be about $25,638 a year, or roughly $29,483 with an assumed 0.15% for voter-approved charges. Real bills vary by address and by any special taxes. - Supplemental tax bill
- When ownership changes, the assessor sets a new value, and the county bills the difference for the rest of the tax year in one or two supplemental bills. They are not part of the regular bill and often surprise new owners.
A note on what this is
These definitions describe general California practice in plain English. Contracts, forms and rules change and differ by case, so confirm details with your lender, the escrow officer, the county and a licensed advisor. Rudy Flores is a licensed real estate agent (CalDRE #02257808) with Coldwell Banker West, not an attorney or tax professional. Market numbers come from Zillow Research and Freddie Mac and are dated on the page.
Keep exploring
- Market reports — Current numbers for the ZIP code.
- Closing cost estimator — Estimate the cash to close.
- Moving to Coronado — The island in a few pages.
- California property tax for newcomers — What to expect on the bill.
- Renovating in Coronado — Permits and approvals.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Rodrigo Ballon with CrossCountry Mortgage, at 858-735-0255. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
Sources
- Zillow Research: data
- Freddie Mac: Primary Mortgage Market Survey
- FHFA: conforming loan limits
- California State Board of Equalization: Proposition 19
General information for orientation, not legal, tax, financial or appraisal advice. Details change; confirm anything that matters with the official source, your lender and your agent.