The Absorption Rate is an estimate of the expected annual sales or new occupancy of a particular type of land use, providing a measurement of how quickly available real estate inventory is being sold or leased.
The Affordability Index is a measurement of housing affordability compiled by the National Association of Realtors® (NAR) and other organizations. It compares median income levels to the income required to purchase a median-priced home, providing insights into regional and national housing affordability.
Asking rent is the initial list price set by a landlord for leasing a property. It can be subject to negotiations leading to concessions such as reduced rent or additional incentives.
The Comparison Method, also known as the Sales Comparison Approach, is a real estate appraisal method that bases the value of a property on the sales prices of similar properties in the same area.
Demographics relate to the characteristics of a population such as race, sex, age, household size, growth, and density, which influence market trends and demand in real estate. Understanding demographics is essential for developers to make informed decisions about new projects and strategic marketing.
In real estate, a depression signifies a severe decline in business activity characterized by high unemployment, excess supply, and public fear, which typically results in reduced real estate construction and high vacancy rates.
A drive-by appraisal, also known as an exterior-only appraisal, is a valuation of a property's market value based primarily on an external inspection from the street or perimeter without conducting an interior evaluation of the property.
Effective demand refers to the actual demand for a product or service that is backed by the ability and intention of consumers to pay for it at the prevailing price.
Equilibrium refers to a state of stability in a real estate market where supply and demand are balanced, resulting in stable prices. Understanding this concept is crucial for appraisers and investors alike to make informed decisions.
Fair Market Value (FMV) is the price that a property would sell for on the open market. Calculating FMV helps in real estate transactions, taxation, litigation, and insurance claims.
First-Time Home Buyers are individuals or households entering the real estate market to purchase a home for the first time or after an extended period of renting. Various programs and incentives often exist to assist these buyers, particularly those who meet specific criteria such as income limits.
A flat fee broker is a licensed real estate broker who charges a predetermined fixed fee for providing brokerage services instead of a conventional commission percentage based on the property's sales price.
Frictional vacancy refers to the short-term, transitional unemployment situation in real estate when properties are vacant due to tenants moving in or out. It represents the natural turnover rate within the market.
Housing Starts are a vital economic indicator that measures the number of new residential construction projects that have begun within a specified period. This figure provides insights into economic conditions and trends within the housing market.
Housing starts refer to the number of new residential construction projects that have begun within a specific period, typically measured on a monthly basis. It is a leading economic indicator that provides insights into the real estate market and the economy at large.
The listing price, also known as the asking price, is the price a seller sets for a property when placing it on the market. It's an initial amount intended to serve as a starting point for negotiations with potential buyers.
The Market Comparison Approach, also known as the Sales Comparison Approach, is a valuation method used primarily in real estate to estimate the value of a property by comparing it to similar properties recently sold in the same area.
Market price is the actual price paid in a market transaction for an asset, in contrast to the market value. It reflects the monetary amount a buyer is willing to pay and a seller is willing to accept under normal market conditions.
Market rent refers to the rental income a property can be expected to earn in the open market under typical conditions. It is contrasted with contract rent, which is the actual rent agreed upon by both parties.
Market research is the process of gathering, analyzing, and interpreting data concerning market conditions. It plays a crucial role in understanding market trends, identifying customer needs, and evaluating competitive landscapes.
A marketability study is an analysis conducted for a specific client to determine the likely sales of a specific type of real estate product. It seeks to establish the market price and rate of sales for a particular product without considering its financial feasibility or profitability.
Mass appraising involves assessing groups of properties to estimate their values using sophisticated statistical methods, often employed by tax authorities for property tax assessments.
Median price is the house price that falls right in the middle of the total number of homes sold in a particular area, offering a better representation of the market compared to average prices.
A comprehensive guide to understanding the impact and behavior of Millennials in the real estate market.
The Natural Vacancy Rate is the average vacancy rate for a rental property market that balances supply and demand, serving as a long-term benchmark to evaluate whether current vacancy rates are high or low.
A NINJA loan is a type of secured loan given to borrowers with no income, no job, and no assets. These loans carry high risk for lenders and were popular during the mid-2000s credit bubble, partly because lenders anticipated rising real estate values.
Overbuilding occurs when there is more real estate construction in a specific area than the market can absorb within a reasonable amount of time. This imbalance between supply and demand often leads to vacant properties and lower rental rates.
Panic selling refers to the sudden, widespread urgency to dump properties on the market, typically incited by fear of a rapid decline in property values, often due to perceived detrimental changes in neighborhood conditions.
A Real Estate Appraiser is a professional who evaluates and estimates the value of properties. The appraiser considers many factors, including location, condition, and market trends, to provide an unbiased opinion of the property's market value. Their services are crucial for transactions such as buying, selling, refinancing, and property taxation.
The real estate market consists of potential buyers and sellers of real property at any given moment, as well as the current transaction activity surrounding such properties. It encompasses various segments including housing, office spaces, condominiums, and land.
A Real Estate Operating Company (REOC) is a business entity engaged in the direct ownership, operation, management, and development of real estate properties. Unlike Real Estate Investment Trusts (REITs), REOCs do not necessarily have to distribute a significant portion of their earnings as dividends and are not subject to the same regulatory requirements.
A Real Estate Salesperson is a licensed professional who assists buyers and sellers in real estate transactions, providing expert advice, market analysis, and negotiation skills to facilitate property sales.
In the context of real estate investment, the resale price is the projected selling price a property might fetch at the end of the projection period or investment horizon. It plays a crucial role in profitability analysis and investment decision-making.
The S&P/Case-Shiller Index, also known as the Case-Shiller/S&P Home Price Index, is a collection of indices that tracks changes in the value of residential real estate in the United States. It is one of the most trusted measures for house price fluctuations across various metropolitan regions.
Sale pending is a term used in real estate to describe a property for which a contract has been signed but the transaction has not yet closed. These transactions are not officially counted as sales until the closing process is completed.
Shadow inventory refers to the potential supply of homes that are kept off the market by their owners or banks, waiting for more favorable market conditions such as improved demand and higher prices.
Staging refers to the process of preparing a residential property for sale through various means such as remodeling and interior decoration to enhance its marketability.
In real estate appraisal, the 'subject property' refers to the property currently being appraised. Understanding its value, attributes, and market comparables is essential for accurate property valuation.
Trulia is a popular website that provides comprehensive information on residential real estate, including homes for sale and detailed property features. It's designed to connect potential buyers with real estate brokers who are members of Trulia.
A willing buyer is a person who expresses genuine interest in purchasing a property under common market conditions, without being under undue pressure or compulsion.
