Real estate has its own language, and an island has a few more words on top. Here are the terms you will hear on Coronado Island, grouped by what they are about, with the local twist where there is one.
Plain English
Real Estate Words You Will Hear on Coronado Island
Sixteen terms grouped by topic (money, paperwork, the property and the market), with what each means and how it shows up on Coronado Island.
The terms at a glance
Appraisal · Base-year value (Proposition 13) · Closing costs · Coastal zone and coastal development permits · Comparative market analysis (CMA) · Contingency · Earnest money deposit · Escrow · HOA and CC&Rs · Mills Act · Months of supply · PCOR and the homeowners’ exemption · Pre-approval · Rate lock and points · Transfer Disclosure Statement · Typical home value
Money and loans
- 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.
- Appraisal
- An estimate of a home’s market value by a licensed appraiser, ordered by the lender. If it comes in below the price, the buyer, the seller and the lender have to decide how to close the gap.
- Pre-approval
- Where a pre-qualification is a conversation, a pre-approval is paperwork: the lender pulls credit, checks income, assets and debts, and states in writing what it is prepared to lend, subject to the appraisal and final underwriting.
- Closing costs
- Expect a separate line of costs at closing, distinct from your down payment: charges for the loan, for title insurance and escrow, for recording the deed and for prepaying part of the year’s taxes and insurance. The Closing Disclosure shows the final numbers.
- Base-year value (Proposition 13)
- The taxable value California sets when a property is purchased or newly built, usually the purchase price. Under Proposition 13 it can rise by no more than 2% a year until the next change of ownership. The base tax is about 1% of it, plus voter-approved local charges.
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. - Rate lock and points
- A rate lock holds your quoted interest rate for a set number of days so a market move does not change it before closing. Points are optional fees, 1% of the loan each, that can buy a lower rate.
Local example: Freddie Mac’s weekly survey put the average 30-year fixed rate at 7.03% on Sep 24, 2026. Your rate depends on the lender, the loan and your finances.
Paperwork and disclosures
- Escrow
- The neutral middle ground of a sale: an escrow company takes custody of the money and the documents, follows the instructions both sides signed, and closes the transaction once every condition in the contract is met.
- Contingency
- Each contingency is a safety net with a clock on it. If the inspection, appraisal or loan approval goes badly within the agreed period, the buyer may cancel and keep the deposit; once the buyer removes the contingency, that protection is gone.
- 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.
- PCOR and the homeowners’ exemption
- The Preliminary Change of Ownership Report is filed when a property is transferred, so the county assessor can reassess it. The homeowners’ exemption is a $7,000 reduction in taxable value for a home the owner lives in, claimed once with the assessor.
The property and the neighborhood
- HOA and CC&Rs
- In an HOA community, owners pay dues that fund common areas and services and agree to the CC&Rs, which can regulate rentals, parking, pets and changes to the exterior. Read them before you commit.
Local example: On the island, many condominium buildings and some communities have associations, so ask for the documents early. - 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.
Reading the market
- Months of supply
- How many months it would take to sell every home now listed at the recent pace of sales. Under about four months usually favors sellers and over about six usually favors buyers, though local conditions vary.
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
- A “typical” value is a statistical midpoint for an area’s middle-tier homes, from Zillow’s index. Use it to follow a trend, not to price a home; your street and your home’s condition decide the price.
Local example: Zillow’s typical home value in Aug 2026 was $2,563,759 in ZIP 92118. - Comparative market analysis (CMA)
- A comparison of a home with similar nearby homes that recently sold, are pending or are on the market, used to suggest a listing or offer price. It is an agent’s opinion, not an appraisal.
Rudy prepares a personal market report on request, with the sold and current homes closest to yours.
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.
- The island guide — A first look at Coronado.
- Prop 13 since 1978 — A Coronado timeline.
- Coronado zoning changes — What the housing element means.
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.