Real Estate Glossary
There are many different terms and phrases that people use within the world of real estate. Anyone who is looking to engage in Miami real estate should make it a point to become familiar with these terms and phrases to ensure that they fully understand what needs to be understood.
We have put together a list of terms and phrases to provide you with a clear idea on what you can expect as you venture into the property market. Nevertheless, if you have any questions and/or concerns, you are welcome to get in touch with us so that we can provide you with personal assistance.
The ratio of sold properties against the number of properties that remains available on the property market. It is used to measure the volatility of any given market.
A method which is used to estimate value for property by using similar properties within the same market in order to determine the value of a specific property.
A provision which grants the lender the right to seek immediate payment for any outstanding loan balance in specific conditions such as borrower’s default.
An infrastructure which is separate from the main building on any given property. Examples include garages, storage rooms, workshops and tool sheds.
The growth of land which comes as a result of natural forces.
A measurement of area that is equivalent to 43,560 square feet.
The measurement of time which has passed since the property was built.
The date when interest rates are set to change on adjustable rate mortgages.
Ad Val Orem Tax
Taxes based on the value of the land as well as improvements to the land.
Additional documents which contain information that is considered to be pertinent to the subject. Often used by appraisers to explain any items in the event that the space provided in the standard appraisal form is insufficient for all details.
Adjustable-Rate Mortgage (ARM)
A specific type of mortgage with interest rates that tend to vary depending on an actual index which is usually the prime lending rate for any given market.
The value of an asset which is inclusive of the original price plus the the value of any applicable improvements as well as deductions on any applicable depreciation factors.
Adjusted Sales Price
The sales price for a property after price adjustments have been granted for existing differences between one property and another similar property.
The value of a property which is gained based on its appearance.
A statement of declaration regarding the truth of any given set of facts.
A method which helps to determine whether or not an individuals will be able to meet the corresponding obligations of a mortgage for specific property.
An individual that has been appointed to act on behalf of someone for a specific transaction process.
Features which increase the value of any given property. Examples include natural amenities such a location as well as man-made amenities such as swimming pools.
The method of paying for a mortgage loan over a regular period of payments.
The actual breakdown of payments over the duration of an amortized loan which enlists principal contribution as well as interest fees.
The period of time wherein an amortized loan is paid for. More often than not, mortgages are amortized over a term of fifteen or thirty years.
A measurement of electric current pertaining to magnitude.
Annual Percentage Rate (APR)
The interest rate charged each year for any given loan.
Refers to a sum of money which is paid on a regular basis.
AQ form which is to be filled out by borrowers in order to acquire a mortgage loan. It contains personal information regarding the applicant’s income, savings, assets, debts, and more.
An opinion of property value which is derived through recent sales of similar properties which is carefully assessed by a licensed appraiser.
A non-profit organization established in the United States in 1987. It promotes professional valuation and improvements for the Uniform Standards of Professional Appraisal Practice within the country.
An international organization focused on real estate appraisal education.
The basic factors in the property valuation process which includes inspection of the property, market analysis, as well as basic economic ideas.
A report which is intended to convey the opinion of value of any given property with supporting documentation and information regarding the property.
A developed opinion regarding the market value of any given property which has been derived upon observance of accepted appraisal principals.
A certified professional that is knowledgeable when it comes to real estate markets, values, as well as practices. Usually an independent party which has no vested interst in the value or sales price of the subject property.
The term used to describe the natural increase in property values which is influenced by market conditions.
Arms Length Transaction
Any given transaction wherein parties involved are not connected to one another. Transactions of this nature are known to demonstrate the true market value of real estate.
The value that is assigned to any given property based on jurisdictional tax assessment.
The process of assigning value to any given property for the purpose of taxes.
The relationship of a property’s assessed value against its actual market value.
The jurisdictional representative who conducts the assessment on property value.
Any valuable item belonging to an individual.
The act of transferring ownership of a mortgage.
A specific type of mortgage on property which can be taken over by a person once the property has been sold.
The handing over of a mortgage from one person to another after a sales transaction has been completed.
A series of homes that are attached physically despite being occupied by a variety of people.
The slope of ground that surrounds a home property.
Ball Cock Valve
The valve found on the inside of a toilet tank which regulates the flow of water into the tank.
The percentage which is used to in order to determine what portion of an individual’s income can be utilized for the purpose of paying any debts which is inclusive of all necessary expenses. It is used by lenders in the mortgage approval process.
A specific type of mortgage loan wherein monthly payments are not big enough to cover for the loan which leads to a single large payment for the remaining balance at the end of the agreed term.
The state of inability of any person or group to settle their debts for which they seek protection from the state. It can prevent a person from securing a loan and can remain on their records for up to a decade.
A supporting structure.
Bill Of Sale
A physical receipt that indicates the sale of any given property.
A specific type of mortgage wherein borrowers are required to settle payments every two weeks as opposed to making payments on a monthly basis. It equates to thirteen monthly payments which helps to reduce the period of time that will be needed in order to settle a thirty-year mortgage.
An area which has grown undesirable due to conditions that cannot be fixed.
A genuine offer that is made with good intentions.
The environment wherein debt securities are issued and traded. It serves as a mechanism for long-term funding of both public and private expenditures.
A specific type of loan which is made in order to facilitate the purchase of a new home even before the buyer’s current home has been sold. Its equity is then utilized in order to fund the new home purchase. Bridging
A supporting structure that is used between beams.
Any person who brings together a buyer and a seller.
British Thermal Unit (BTU)
A measurement used to describe heating or cooling capacity.
A segment of land which is located between two municipal zones. Usually utilized to separate residential communities from commercial areas.
A set of regulations which looks into the safety and material compliance of new constructions. They are typically localized to look into common hazards.
The distance between infrastructures and the property line as imposed by local municipalities, homeowners associations, or other applicable agreements.
Any items which are installed into a property as an improvement such as built-in appliances.
A single-story style of home which dates back to the early twentieth century.
Additional money which is paid in one sum in order to reduce the interest rate of a fixed-rate mortgage over time.
An electrical cable which has been wrapped in a galvanized steel cover.