Property Types
This type of property includes single- family homes and condos.
What is Residential Real Estate?
Money borrowed to purchase real estate
What is a Mortgage?
An expert estimate of a property's value
What is an appraisal?
Items that are permanently attached to property
What are fixtures?
This property type includes apartment buildings with 5 or more units.
What is multifamily?
A property with 2-4 units is often classified as this type for financing
What is Residential?
This loan program is insured by the federal government and is popular among first-time homebuyers.
What is an FHA loan?
Comparing similar recently sold properties to determine value
What is a CMA?
The increase in property value over time
What is Appreciation?
The process of researching a property before purchase, including financials, leases, and inspections.
What is due diligence?
This type of ownership gives buyers title to the interior space while sharing ownership of common areas.
What is a condominium?
The ratio lenders use comparing a borrower’s monthly debt payments to gross monthly income.
What is debt-to-income ratio (DTI)?
The amount a county or municipality assigns to a property for taxation purposes.
What is assessed value?
The formal process where ownership of property transfers from seller to buyer.
What is closing?
This document outlines the major business terms of a proposed commercial transaction before a formal contract.
What is a letter of intent (LOI)?
A property occupied by the owner while part of the home is rented to generate income.
What is an owner-occupied investment property?
Money paid at closing to reduce the mortgage interest rate.
What are discount points?
This occurs when a buyer agrees to pay more than a property’s appraised value.
What is an appraisal gap?
A clause allowing a buyer to back out of a contract under certain conditions.
What is a contingency?
The annual return generated by a property based on net operating income divided by purchase price.
What is capitalization rate (cap rate)?
This mixed-use property type combines residential, retail, office, or hospitality uses within a single development.
What is a mixed-use development?
What is an adjustable-rate mortgage? (ARM)
A valuation method based on the cost to rebuild a property minus depreciation.
What is the cost approach?
An ownership interest held by two or more people with equal rights of survivorship.
What is joint tenancy?
A lease structure where the tenant pays rent plus property taxes, insurance, and maintenance expenses.
What is a triple net lease (NNN)?