Where cozy means tiny and charming means needs work.
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.
Additional rent paid by retail tenants based on a percentage of their gross sales above a threshold, common in shopping centers. It's the landlord's way of ensuring they profit from your business success while you bear all the risk.
A euphemistic phrase suggesting the current owners maintain their property immaculately, or more cynically, that they've over-improved it beyond what the market will bear. Translation: someone really loves their home, possibly too much.
A contract binding a buyer to an agent for a specific period, ensuring the agent gets paid even if the buyer tries to ghost them after months of work. It's basically a pre-nup for the house-hunting relationship.
The increased value created when adjacent properties are combined into a larger, more useful parcel. It's the financial proof that sometimes the whole really is worth more than the sum of its parts.
A lease with predetermined rent increases at scheduled intervals, allowing tenants to budget for inevitable pain. The landlord's inflation hedge disguised as transparency.
A legal instrument transferring whatever ownership interest the grantor has, if any, without warranties or guarantees. It's the real estate version of 'here, take it, not my problem anymore,' offering zero protection to the recipient.
The chunk of cash you fork over upfront when buying property, proving you have skin in the game beyond just promises and good intentions. It's the financial commitment that separates dreamers from homeowners.
The process of evaluating recently sold similar properties to determine market value, essentially treating home pricing like comparison shopping for toasters. It's the foundation of appraisals and every pricing strategy that claims to be data-driven.
The recurring costs of keeping a property functional—utilities, maintenance, management, insurance, and property taxes—everything except debt service. It's the monthly financial hemorrhaging that separates rental income from actual profit.
An official map filed with the county showing how land is divided into lots, streets, and easements. It's the government-approved blueprint that prevents you from accidentally buying someone's driveway.
A loan where the borrower remains personally liable even after foreclosure if the property sells for less than owed. It's the lender's insurance policy that you can't just walk away.
The area of ground that a building occupies, measured at its foundation level. Like a carbon footprint, but for structures and without the environmental guilt.
Strategies employed by lenders to avoid foreclosure when borrowers can't make payments, including loan modifications, short sales, or forbearance. The bank's damage control department.
Property owned free and clear without mortgages, liens, or other claims—the real estate equivalent of being debt-free and loving it. Either you're wealthy, you inherited well, or you've been paying your mortgage since the Reagan administration.
Partial ownership or time-sharing of an expensive asset (real estate, jets, yachts) without the full price tag or commitment. For people who want the luxury experience but want to hedge their bets. It's basically 'I don't want to fully commit to this $20 million decision.'
Comparative Market Analysis—a report comparing similar properties to determine a home's market value. It's like Zillow's estimate, except prepared by an actual human who might know what they're doing.
A FEMA-designated area with specific flood risk levels that determine insurance requirements and costs. It's the government's way of telling you that 'waterfront property' might be more literal than you hoped.
Private Mortgage Insurance—extra insurance you pay when your down payment is less than 20%, protecting the lender if you default. It's insurance that only benefits the bank while you foot the bill.
An arrangement where sellers continue renting their former home from buyers after closing, usually for a short period. It's the awkward transition period where you're both landlord and confused.
The legal privilege to cross or use someone else's property for a specific purpose, typically for accessing your landlocked parcel or running utilities through their yard. These easements create permanent pathways that survive ownership changes, meaning future owners inherit both the right and the awkwardness of strangers traipsing across their land. It's neighborly cooperation enforced by legal documentation instead of friendliness.
In real estate, the legally mandated buffer zone between your dream home and the street—because apparently neighbors don't trust you to build right up to the sidewalk. This zoning requirement ensures adequate spacing for utilities, pedestrian safety, and keeping your McMansion from literally looming over passing joggers. Think of it as the government's way of forcing you to have a front yard whether you want one or not.
Short-term financing for building or renovating property, typically disbursed in stages as construction progresses rather than all at once. It's banking's trust exercise, betting you can actually finish the project before the money runs out.
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.