The holding period in real estate refers to the duration of time an investor retains ownership of a property. This interval plays a crucial role in determining the financial outcomes and strategies of the investment, such as potential tax implications, capital appreciation, and cash flow management.
Liquidation Price refers to the amount a property would fetch under an immediate sale, typically lower than its market value due to the urgency of the transaction and expenses involved. It contrasts with Market Value, which reflects a sale in normal market conditions.
Proceeds from resale refer to the total amount of money received from selling a property, after accounting for any associated costs and expenses.
Resale proceeds refer to the amount a seller receives from the sale of a property after deducting transaction costs, outstanding mortgage, and applicable taxes. Measuring the net financial benefit, it is essential for homeowners and investors alike.
Transaction costs are the expenses incurred during the process of buying and selling real estate, ranging from legal fees to broker commissions, and various other charges ensuring the successful transfer of property.
