Where cozy means tiny and charming means needs work.
Funds set aside for replacing building components and systems that wear out over time, essential for multifamily and commercial property management. The 'we know the roof will eventually die' savings account.
A mortgage that meets Fannie Mae and Freddie Mac's size and underwriting requirements, making it eligible for government backing. Essentially, it's a loan that colors inside the lines and gets rewarded with better interest rates.
A legally binding promise or restriction in a deed governing how property can be used, often imposed by developers to maintain neighborhood character. It's your neighbor's legal standing to care way too much about your fence height.
The ratio of total building floor area to the size of the land parcel, expressed as a decimal that determines building bulk. A FAR of 2.0 means you can build twice the square footage of your lot, just stack it up.
Common Area Maintenance charges—fees in commercial leases where tenants reimburse landlords for shared expenses like landscaping, snow removal, and parking lot maintenance. It's how landlords outsource their property bills to the people renting from them.
A property allegedly so perfect you could move in immediately with nothing but your keys and belongings. Spoiler: there's always something.
The extra compensation an agent receives when representing both buyer and seller, also called double-ending. Twice the work or twice the conflict of interest, depending on who you ask.
A flashy wheeler-dealer who's allergic to honest work, preferring to make money through shady speculation and questionable schemes. Think of that guy with gold chains who's been bankrupt three times but somehow still drives a Mercedes—registered in his wife's name, of course.
A reduction or elimination of property taxes for a specified period, typically offered as an incentive for development or renovation in targeted areas. It's the government's way of bribing you to improve neighborhoods they've neglected.
A retail lease provision letting tenants break the lease or pay reduced rent if an anchor store closes or occupancy drops below a threshold. It's the commercial tenant's escape hatch from a dying mall.
Annual net income divided by annual debt payments, basically whether you're making enough money to pay your mortgage.
A mortgage with an interest rate that adjusts periodically, a financial arrangement that seems great until rates rise.
Recently sold properties similar to the subject property in location, size, and condition, used to estimate fair market value. Appraisers cherry-pick comps like they're selecting the best fruit at the farmer's market.
A property owner who rents to tenants and spends their free time calling a plumber or texting the tenant about the rent check that's three days late.
A legal claim against a property by contractors or suppliers who weren't paid for work or materials. It's revenge served cold by your deadbeat seller's unpaid roofer.
An agreement that freezes your mortgage interest rate for a specified period while you complete the purchase. It's financial stability in an unstable world, for 30-60 days at least.
The apartment that sits on top of a building like a crown, usually inhabited by people who think elevators are for peasants. Originally just a shed attached to a building, it evolved into the ultimate flex in urban real estate—complete with panoramic views and price tags that require scientific notation. Because nothing says 'I've made it' like living where pigeons used to roost.
The real estate developer's favorite verb: to slice a large parcel of land into smaller, more profitable chunks like a capitalist playing Minecraft. This process transforms Farmer Joe's 40-acre field into 'Meadowbrook Estates,' featuring 200 identical homes and exactly three approved paint colors. It's the magic by which empty land becomes cookie-cutter suburbs and developers become very, very wealthy.
Property rights of landowners whose property borders rivers or streams, governing water use and access. The reason your creek-front property doesn't mean you own the water or can dam it up.
A property's annual revenue minus operating expenses but before debt service and taxes, the key metric for commercial real estate valuation. Abbreviated NOI, it's the number that makes or breaks whether your investment property is actually profitable.
The four horsemen of monthly housing payments: Principal, Interest, Taxes, and Insurance. It's the total amount you'll shell out each month to keep a roof over your head and the bank off your back.
In construction and real estate, the detailed process of measuring and quantifying all materials needed for a project from blueprints, basically turning drawings into shopping lists. Also known as "quantity takeoff," it's the unglamorous math that prevents contractors from discovering mid-project that they're three truckloads of concrete short. Get it wrong, and someone's explaining cost overruns to very angry people.
A lease that gives the tenant the right to sublease the property to others, essentially making them a middleman landlord. It's landlording with training wheels, or a profit opportunity, depending on your perspective and local laws.
When you refinance your mortgage for more than you owe and pocket the difference, essentially using your house as a personal ATM. It's a way to access home equity while simultaneously increasing your debt and monthly payment—what could go wrong?