Glossary: Key terms related to real estate, construction, and investment


Glossary
Comprehensive glossary of real estate terms with the missing bits added and no repetitions:

Appraisal, Amortization, Appreciation, Amenities

1. Appraisal: An estimate of a property's fair market value by a qualified professional.

2. Amortization: The process of paying off a debt (often a mortgage) over time through regular payments.

3. Appreciation: An increase in the value of a property over time.

4. Amenities: Features that enhance the desirability and value of a property, such as a swimming pool or fitness center.

Broker, Buyer's Market, Balloon Mortgage

5. Broker: A licensed professional who acts as an intermediary between buyers and sellers in real estate transactions.

6. Buyer's Market: A market condition where supply exceeds demand, giving buyers an advantage.

7. Balloon Mortgage: A mortgage with a large final payment due at the end of the loan term.

Capital Gain, Closing Costs, Condominium (Condo), Certificate of Occupancy (C of O)

8. Capital Gain: The profit realized from the sale of a property.

9. Closing Costs: Fees associated with completing a real estate transaction, typically including taxes, insurance, and legal fees.

10. Condominium (Condo): A type of property ownership where individuals own units within a larger complex.

11. Certificate of Occupancy (C of O): A document issued by the local government certifying that a building meets safety and health standards.

Deed, Down Payment, Debt-to-Income Ratio (DTI)

12. Deed: A legal document that transfers ownership of a property from one party to another.

13. Down Payment: An initial payment made when purchasing a property, typically a percentage of the total price.

14. Debt-to-Income Ratio (DTI): The ratio of an individual's monthly debt payments to their monthly gross income.

Easement, Equity, Escrow, Encroachment

15. Easement: A right to use another person's land for a specific purpose.

16. Equity: The difference between a property's market value and the amount owed on its mortgage.

17. Escrow: A neutral third party that holds funds and documents during a real estate transaction.

18. Encroachment: When a structure or property feature extends beyond the legal boundaries onto an adjacent property.

Fair Market Value, Foreclosure, Fixed-Rate Mortgage

19. Fair Market Value: The price a property would sell for on the open market

20. Foreclosure: The legal process by which a lender takes possession of a property when the owner fails to make mortgage payments.

21. Fixed-Rate Mortgage: A mortgage with an interest rate that remains constant throughout the loan term

Gentrification, Gross Rent Multiplier (GRM)

22. Gentrification: The process of renovating and improving a neighborhood, often resulting in increased property values and displacement of lower-income residents.

23. Gross Rent Multiplier (GRM): A ratio used to estimate a property's value based on its gross rental income.

Home Equity Loan, Home Inspection, Homeowners Association (HOA)

24. Home Equity Loan: A loan that uses the equity in a home as collateral.

25. Home Inspection: A detailed examination of a property's condition, typically performed before purchase.

26. Homeowners Association (HOA): An organization that manages and maintains common areas in a residential communi

Interest Rate, Investment Property, Improvements

27. Interest Rate: The cost of borrowing money, usually expressed as a percentage of the loan amount.

28. Investment Property: Real estate purchased with the intention of earning a return through rental income or future resale.

29. Improvements: Additions or changes made to a property that increase its value.

Lien, Listing, Lease

30. Lien: A legal claim against a property that must be paid when the property is sold.

31. Listing: An agreement between a property owner and a real estate agent to sell a property.

32. Lease: A contract that grants the right to use a property for a specified period in exchange for rent.

Market Value, Multiple Listing Service (MLS), Market Value

33. Mortgage: A loan used to purchase real estate, with the property serving as collateral.

34. Multiple Listing Service (MLS): A database of property listings shared by real estate agents.

35. Market Value: The price a property would likely sell for on the open market.

Negative Equity, Net Operating Income (NOI)

36. Negative Equity: When the amount owed on a mortgage is higher than the property's current market value.

37. Net Operating Income (NOI): The total income generated from a property minus operating expenses.

Off-Plan, Open House, Owner-Occupied

38. Off-Plan: Purchasing a property before it's been built, typically from architectural plans.

39. Open House: An event where potential buyers can view a property for sale.

40. Owner-Occupied: A property where the owner lives as their primary residence.

Property Tax, Purchase Agreement, Pre-Approval

41. Property Tax: A tax levied on real estate by the local government.

42. Purchase Agreement: A legal document outlining the terms and conditions of a property sale.

43. Pre-Approval: A lender's conditional commitment to provide a loan up to a certain amount.

Real Estate Agent, REITs (Real Estate Investment Trusts), Refinance, Rental Income

44. Real Estate Agent: A licensed professional who represents buyers or sellers in real estate transactions.

45. REITs (Real Estate Investment Trusts): Companies that own and often operate income-producing real estate.

46. Refinance: The process of replacing an existing mortgage with a new one, often with better terms.

47. Rental Income: Money received from leasing a property to a tenant

Seller's Market, Survey, Security Deposit

48. Seller's Market: A market condition where demand exceeds supply, giving sellers an advantage.

49. Survey: A detailed map of a property showing its boundaries and features.

50. Security Deposit: A sum of money paid by a tenant to a landlord as a guarantee against damages or unpaid rent.

Title, Title Insurance, Tenancy

51. Title: A legal document proving ownership of a property

52. Title Insurance: Insurance that protects against losses arising from disputes over property ownership.

53. Tenancy: The act of renting and occupying a property.

Utilities, Underwriting

54. Underwriting: The process of evaluating a loan application to determine the risk for the lender.

55. Utilities: Services such as electricity, water, gas, and internet that are necessary for a property's operation.

Vacancy Rate, Valuation

56. Valuation: The process of estimating the market value of a property.

57. Vacancy Rate: The percentage of rental properties that are unoccupied at a given time.

Walkthrough, Warranty Deed

58. Walkthrough: A final inspection of a property by the buyer before closing.

59. Warranty Deed: A deed that guarantees the seller has clear title to the property and the right to sell it.

Zoning

60. Zoning: Local laws that regulate how property in specific locations can be used.