Sensitivity analysis is a method used in investment analysis to determine how different values of key variables impact the outcomes of an investment. This technique helps in assessing the riskiness of an investment by testing how changes in assumptions affect investment results.
Simulation in real estate involves artificially replicating the behavior of a system for future analysis, enabling informed decision-making and planning based on various scenario testing.
Terminal value represents the remaining value or expected remaining value of a property at the end of a certain period, such as an income projection period. It is an essential component in financial modeling and valuation, like Discounted Cash Flow (DCF) analysis, to determine the future worth of an asset.
With over 3,000 definitions (and 30,000 Quizes!), our Lexicon of Real Estate Terms equips buyers, sellers, and professionals with the knowledge needed to thrive in the real estate market. Empower your journey today!