Market trends, demographic analysis, economic indicators, and research methods for real estate markets.
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Foundation terms you need to know first (51 terms)
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
Price Per Square Foot (PPSF) is a real estate metric calculated by dividing a property's total price by its finished square footage, used to compare property values on a standardized basis.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
Market value in real estate is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently, knowledgeably, and typically uninfluenced by undue stimulus.
Walk Score is a numerical rating from 0 to 100 that measures the walkability of any address, indicating how easy it is to live car-free based on proximity to amenities.
Complex strategies and professional concepts (27 terms)
A market phenomenon where a declining real estate market appears to reverse and begin an upward trend, only to quickly resume its downward trajectory, trapping investors who bought into the false recovery. It often leads to significant losses for those who misinterpret the temporary rebound as a true market bottom.
The Case-Shiller Home Price Index is a leading measure of U.S. residential real estate values, tracking changes in home prices across 20 major metropolitan areas and nationally using a repeat-sales methodology.
Real estate financial modeling is the process of creating a quantitative representation of a real estate investment or development project to forecast its financial performance, assess risk, and support strategic decision-making.
Demand elasticity measures the responsiveness of the quantity demanded of a good or service to a change in its price or other influencing factors, crucial for real estate market analysis and investment strategy.
A value trap in real estate refers to an investment property that appears to be undervalued or a bargain but possesses underlying fundamental issues that will lead to further price depreciation or underperformance.
Property analysis is the systematic process of evaluating a real estate asset's potential value, profitability, and risks by examining market, financial, physical, and legal factors to guide investment decisions.
Property appreciation is the increase in a real estate asset's value over time, driven by market forces and investor improvements, leading to potential profit upon sale.
Property condition refers to the overall physical state of a real estate asset, including its structural integrity, mechanical systems, and cosmetic finishes, which significantly impacts its value, investment potential, and future expenses.
A property inspection is a visual examination of a property's condition by a qualified professional to identify defects, safety hazards, and maintenance needs before purchase.
Property types classify real estate based on use (residential, commercial, industrial, land), guiding investment strategies, financing, and market analysis for investors.
Property underwriting is the comprehensive process of evaluating the risks and potential returns of a real estate investment to determine its suitability for acquisition or financing, involving detailed financial, market, and property-specific analysis.
Property valuation methods are systematic approaches used to estimate the fair market value of real estate, crucial for investment, financing, and taxation decisions. They include the Sales Comparison, Income Capitalization, and Cost Approaches.
Property value is the estimated monetary worth of a real estate asset, determined by various factors including market conditions, location, and physical characteristics. It is a critical metric for investment analysis, financing, and taxation.
Property vetting is the systematic process of thoroughly researching and evaluating a potential real estate investment to assess its risks, potential returns, and overall suitability before making a purchase decision.
A public tender is a formal, competitive process through which government agencies or public entities solicit bids from interested parties for the sale of assets, including real estate, or for the provision of goods and services.
Purchasing power refers to the amount of goods and services a unit of currency can buy, directly impacting an investor's ability to acquire real estate assets and the real value of their returns.
Quantitative Easing (QE) is a monetary policy where a central bank buys government bonds and other financial assets to inject money into the economy, lower long-term interest rates, and stimulate economic activity during downturns.
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