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!
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.