228 cards
Real estate refers to property consisting of land and any permanent improvements attached to it, such as buildings, roads, and utility systems. When the legal rights of ownership are added to the equation, the bundle is known as real property. By contrast, personal property includes movable items that are not permanent...
The transfer of real property is accomplished through a deed, a legal document that conveys ownership from one party to another. Several deed types offer different levels of protection. A warranty deed transfers ownership with broad guarantees about the title, while a special warranty deed limits those guarantees to is...
The closing process is the final step in transferring property ownership, during which the buyer and seller sign documents, funds are exchanged, and the new deed is recorded. Buyers typically pay closing costs—fees and expenses that include lender charges, title insurance, recording fees, and taxes—at this stage. To pr...
A mortgage is a loan used to purchase property, secured by the property itself. The principal is the amount borrowed, while mortgage interest is the cost of borrowing, expressed as a rate. Over time, the loan is repaid through amortization—scheduled payments that gradually reduce both principal and interest. The total...
An appraisal is a professional estimate of a property's market value, conducted by a licensed appraiser. The resulting figure is the appraised value. Market value is the most probable price a property would sell for in an open and competitive market. Although price and value are often used interchangeably, they are dis...
Real estate transactions are typically facilitated by licensed professionals. A real estate agent is a licensed professional who helps clients buy, sell, or rent property. A Realtor is an agent who belongs to the National Association of Realtors (NAR) and adheres to its code of ethics. A broker holds a higher level of...
Real estate can serve as both a personal home and an investment vehicle. A rental property is purchased primarily to generate rental income, and a vacation rental is a short-term rental often listed on platforms like Airbnb. The choice between long-term (monthly leases) and short-term (nightly stays) rentals affects ca...
Real estate markets move through cycles that broadly include recovery, expansion, hyper-supply, and recession phases. The absorption rate measures how quickly available properties sell in a market, while months of inventory estimates how long current listings would take to sell at the present pace. When inventory is lo...