A buyer's market is a real estate market condition characterized by a surplus of available properties leading to more power for buyers to negotiate lower prices. Often, it is the result of economic downturns, overbuilding, or local population decreases.
Developer profit is the anticipated increase in value created by a real estate developer. This profit represents the difference between the final market value of the developed real estate project and the aggregated costs of materials, labor, and overhead.
External obsolescence, also known as economic obsolescence, refers to the depreciation in the value of a property due to external factors beyond the property owner's control, such as changes in the neighborhood, economic conditions, or local regulations.
