Where cozy means tiny and charming means needs work.
A house built by a developer on speculation without a specific buyer lined up. Building it and hoping they will come—the real estate field of dreams.
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.
Annual net income divided by annual debt payments, basically whether you're making enough money to pay your mortgage.
Breaking up a piece of real estate (or a company) into smaller parcels for resale—the real estate equivalent of carving up a turkey. Usually done to maximize profit rather than actual value.
Letter of Intent—the 'I'm seriously interested but not legally committed yet' document that keeps everyone guessing.
A mortgage with an interest rate that adjusts periodically, a financial arrangement that seems great until rates rise.
Money withheld at closing to ensure the seller completes promised repairs or obligations—basically your insurance policy against seller disappearance.
The agent who represents you as the buyer, though technically the broker still wants you to overpay.
A person who rents a property from a landlord and has more rights than you'd think, which landlords discover too late.
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.
When your mortgage payment doesn't cover the interest due, causing your loan balance to actually increase over time. It's like running on a treadmill that's going backwards—you're making payments but falling deeper into debt.
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.
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.
Official documentation from local government certifying that a building complies with codes and is safe for habitation. It's essentially a building's permission slip to exist with people inside it.
Property rights of landowners whose property borders large navigable lakes or oceans, governing use of water and shore access. Like riparian rights' fancy coastal cousin who summered in the Hamptons.
A tenant's right to use rental property without interference from the landlord or other parties. Not about noise levels—it's about being left alone to live your life between rent payments.
Additional cash or property value included in a 1031 exchange to equalize the values being swapped, which unfortunately becomes taxable income. Named perfectly for something that kicks you right in the tax deferral strategy.
Ongoing expenses of property ownership including mortgage, taxes, insurance, utilities, and maintenance while holding property for investment. These costs literally 'carry' you financially from purchase to sale, often eating profits investors forgot to calculate.
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.
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.
A quick property valuation metric calculated by dividing sale price by annual gross rental income, used to compare investment properties. It's the back-of-napkin math real estate investors use before getting serious with cap rates and cash flow analysis.
A short-term, high-interest loan from private investors secured by property rather than creditworthiness, typically used by house flippers who need fast cash. It's called 'hard money' because of the asset-based collateral and the hard hit your wallet takes from those interest rates.