If you're new to the real estate game, there's lots to know before buying, selling, or investing in property. Real estate is an involved arena, and there's plenty of specific language and jargon related to the industry. Brush up on these 20 common terms which are used frequently in the real estate field and you'll feel better prepared to make your next property moves properly!
Amenities: All the "perks" which enhance what a building has to offer are the amenities. Think doorman, garage, storage space, gym, etc. The more of these that come with the purchase, the more you'll feel you're getting for your money.
Appraisal: A licensed appraiser will give an evaluation on the worth of a property based on the study of recent sales of properties in a similar category. The seller can use this determination to generate a reasonable and competitive asking price on their property.
Closing: More like an opening to new beginnings, the closing is the action when the ownership of the property exchanges hands from the seller to the buyer, along with a signed contract.
Commercial Zones: No, not a McDonald's ad during your favorite prime time programming, but areas where a property can be used for retail shops, eateries, and other businesses, rather than residential living.
Commission: A brokers cut of the work they've put in to market and sell a property. Traditionally, the commission will be a specific percentage of the purchase price for the property.
Contract: This legal agreement between the buyer and the seller includes the offer, the acceptance, and the description of the property in question, and must be signed by all parties in order to be legally valid. Be sure to read every bit of fine print and consult with a lawyer if required or recommended before signing on the dotted line.
Counter-Offer: While this sounds like what one may be willing to spend on a kitchen counter, it's actually a new offer made for a property when the prior one was not up to snuff. A counter-offer can be made by either the buyer or the seller until the two parties reach an agreement… or not.
Fixture: Anything attached to the property permanently is considered a fixture, and is generally accepted to come with the sale price of a property. Appliances, lighting, etc. fall into this category unless otherwise agreed upon in the contract.
Floor Plan: This is a drawn out or computer-generated plan of the property space with dimensions, room sizes, and placement, and where the doors, windows, and room partitions are located. This is helpful to plan for furnishings and to get an idea of the space layout before seeing it in person.
Full Bath: While a tub filled to the brim with warm water and bubbles is one definition, when it comes to real estate jargon, a full bath means that the bathroom contains a toilet, a sink, and a tub or shower. A half-bath would not have the tub or shower.
Lease: When you rent a property from the owner, this is considered a lease. Payments are typically made on a monthly basis and often include other facilities such as heating, electric, water, etc.
Lot: A section of land that is part of a listing is considered to be the lot. Often this is measured in acres. If you are seeking a large area for a home or property with plenty of space surrounding it, seek out a generous lot.
Maintenance: If you plan to purchase in a co-op, there will be a monthly maintenance charge to pay for the costs for the building's general needs. This includes taxes, mortgage, operational costs, even a doorman if applicable. Factor this charge into your monthly costs to ensure you've planned your spend accordingly.
Penthouse: Usually one of the grander spaces in a building, the penthouse is on the top floor of a building and is often the most expensive. If you're ready to move on up, consider the penthouse for luxury living and a smart long-term investment.
Pied-a-Terre: Some people purchase or rent a place that they seldom or periodically stay at, and is not used as their primary residence. This is called a pied-a-terre and is often used by those who travel for work, vacation in the same area year after year, or for investment purposes. Subletting is sometimes allowed so the owner may make money on the place when not in use personally.
Realtor: AKA a real estate agent, this person must be part of the National Association of Realtors and assists the buyer or seller with the purchase or sale of their property via marketing, listings, and showings. They will make a commission off the sale of the property.
Sublet: An apartment owner can rent their place to a tenant provided this action is allowed by the building. The owner may live elsewhere or in another portion of the property.
Title: This document proves that a person owns or has the right to a property. The title will change hands at time of closing.
Tenant: The tenant has temporary use of a property which belongs to another owner. A renter or sub-letter would be examples of tenants.
Valuation: Once appraised, the valuation is the estimated worth or price of a property. Be sure to acquire a reliable person or service to provide this information to you before selling or buying.
Now that you are more real estate educated, it's time to make the move to buy or sell with knowledge and confidence. Now close that deal!
Whether you are looking for a new job or trying to grow in your current one, getting a certification can be a great way to improve your skills.
Anyone can put that they are proficient in a computer program on their resume but having a certificate can help you stand out amongst the competition and give credence to the strength of your skills.
But what's the best way to invest in yourself without breaking the bank? Some certification programs can cost hundreds if not thousands of dollars. We are going to walk through six of the best certifications you can get for $100 or less.
Who is it best for: Those who work with analyzing and presenting data.
Cost: $100 for Tableau Desktop Specialist; additional certifications are available for a larger fee.
More companies than ever see themselves as data companies. Being able to understand data and use it to guide decisions at your company is often critical to taking on a leadership role. Not to mention, being able to present the data in a clean, attractive, and compelling way can help get buy-in from others in your organization or clients. That's why Tableau is a great tool to have in your toolbox.
Tableau allows you to create interactive visual analytics dashboards. In layman's terms, you can take data; create graphs, maps, or charts; and then allow end-users to interact with these graphics to better understand the information. It's a fantastic tool allowing non-technical users to gain insights for data-driven decision-making.
Tableau Desktop Specialist certification starts at $100 and has no expiration date. There are many videos on Tableau's site to prepare for your exam as well as Tableau Starter Kits allowing you to play around and learn the different capabilities of the program. Tableau offers a 14-day free trial as well as free license for one year for students.
Additional certifications after Desktop Specialist are Desktop Associate and Desktop Professional. Those working with a Tableau server may also be interested in a separate certification as a Server Associate or Server Professional.
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When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.