Make informed decisions with our Real Estate & Housing Glossary. For homeowners and potential buyers, this glossary demystifies the language of the real estate market, covering everything from housing trends to property law, ensuring you have the knowledge to assess your property's characteristics and market potential confidently.
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A
Adverse Possession (): Adverse possession is a legal principle that allows someone to claim ownership rights to a property they have been using and maintaining for a specified period, even though they are not the legal owner.
Appraisal (): An appraisal is a professional assessment of a property's market value, conducted by a licensed appraiser, which considers various factors, including location, to determine the fair price of a home.
Appreciation (): Appreciation refers to the increase in value of a property or neighborhood over time.
Architectural Review Committee (ARC) (): An Architectural Review Committee (ARC) is a group responsible for maintaining the aesthetic standards and architectural integrity of a planned community or development.
Assessor's Parcel Number (APN) (): An Assessor's Parcel Number (APN) is a unique identifier assigned to each parcel of real estate by the local county assessor's office for property tax assessment and tracking purposes.
B
Barrier-Free Environment (): A barrier-free environment is a space designed to be accessible and easily navigable for all individuals, regardless of their physical abilities or limitations.
Bedroom Community (): A bedroom community is a residential suburb or town where most residents commute to a nearby city for work, often resulting in lower daytime population density.
Buyer Personas (): Buyer personas are fictional representations of ideal customers, based on real data and market research, used to understand and target specific audiences in the context of location intelligence reports.
Buyer's Agent (): A buyer's agent is a licensed real estate professional who represents the interests of the home buyer throughout the purchasing process, including making offers on properties.
C
Commuter Town (): A commuter town is a residential area located outside of a major city, where a significant portion of the population travels daily to the nearby city for work.
Comparative Market Analysis (CMA) (): A Comparative Market Analysis (CMA) is a report that compares a property to similar recently sold properties in the same area to estimate its market value.
Contingency Waiver (): A contingency waiver is a document that removes specific conditions or requirements from a home purchase offer, potentially making the offer more attractive to sellers but increasing the buyer's risk.
Covenants, Conditions, and Restrictions (CC&Rs) (): Covenants, Conditions, and Restrictions (CC&Rs) are a set of rules and guidelines that govern the use and maintenance of properties within a specific community or development.
Customer Segmentation (): Customer segmentation is the process of dividing a customer base into distinct groups based on shared characteristics, behaviors, or preferences, enabling businesses to tailor their marketing strategies and offerings to specific segments.
D
Days on Market (DOM) (): Days on Market (DOM) is a real estate metric that measures the number of days a property has been listed for sale on the market until it is sold or taken off the market.
Deed Restriction (): A deed restriction is a legal provision that limits or dictates how a property can be used or modified by the owner.
E
Easement (): An easement is a legal right to use or access a portion of another person's property for a specific purpose without possessing it.
Easement Appurtenant (): An easement appurtenant is a property right that grants the owner of one property (the dominant estate) the right to use a specific portion of a neighboring property (the servient estate) for a particular purpose.
Encroachment (): Encroachment refers to the gradual intrusion or development of land or structures into areas where they are not permitted or may have negative impacts on the surrounding environment or community.
Escalation Clause (): An escalation clause is a provision in a home purchase offer that automatically increases the buyer's bid by a specified amount if a competing offer is received, up to a maximum limit set by the buyer.
H
HOA Fees (): HOA fees are monthly or annual charges that homeowners pay to their Homeowners' Association (HOA) to cover the costs of maintaining and improving common areas and amenities within the community.
Homeowners' Association (HOA) (): A Homeowners Association (HOA) is an organization that manages and maintains a residential community, enforcing rules and regulations to preserve property values and enhance the living experience for residents.
Home Value Estimate (): A home value estimate is an approximation of a property's current market value based on various data points and market trends.
Housing Inventory (): Housing inventory refers to the number of homes currently available for sale in a specific real estate market or geographic area.
Housing Market (): The housing market refers to the supply and demand dynamics of residential properties within a specific geographic area, including factors such as home prices, sales volume, and inventory levels.
Housing Market Area (HMA) (): A Housing Market Area (HMA) is a geographic region defined by the U.S. Department of Housing and Urban Development (HUD) for the purpose of analyzing local housing conditions and trends.
L
Legal Description (): A legal description is a formal, detailed, and legally recognized description of a property's location and boundaries, typically used in official documents such as deeds and mortgages.
Listing Agent (): A listing agent is a real estate professional hired by the seller to market and sell their property, representing the seller's interests throughout the home-selling process.
Low-Income Housing Tax Credit (LIHTC) (): The Low-Income Housing Tax Credit (LIHTC) is a federal program that encourages the development and rehabilitation of affordable rental housing for low-income households by providing tax incentives to investors.
M
Median Home Price (): The median home price is the middle price point of all homes sold in a specific area during a given period, where half of the homes sold for more and half sold for less.
Mill Rate (): The mill rate is the amount of tax payable per dollar of a property's assessed value, used by local governments to calculate property taxes.
Mixed-Income Housing (): Mixed-income housing refers to residential developments that include a combination of housing units with varying price points, catering to households with different income levels.
N
Non-Conforming Use (): A non-conforming use is a land use or property that does not comply with the current zoning regulations but is allowed to continue because it legally existed before the regulations were enacted.
P
Prescriptive Easement (): A prescriptive easement is a legal right to use another person's property, acquired through open, notorious, and continuous use over a specified period of time, without the owner's permission.
Property Survey (): A property survey is a detailed document prepared by a licensed surveyor that identifies and maps the boundaries, features, and improvements of a specific parcel of land.
Property Taxes (): Property taxes are taxes levied by local governments on real estate properties, such as homes, land, and commercial buildings, based on their assessed value.
Property Tax reforms (): Property tax reforms are changes made to the property tax system that can impact the amount of taxes homeowners pay and the services provided by local governments.
Psychographics (): Psychographics is the study of people's attitudes, interests, and lifestyles to create detailed profiles of target audiences for marketing and advertising purposes.
R
Realtor (): A Realtor is a licensed real estate professional who is a member of the National Association of Realtors (NAR) and adheres to a strict code of ethics when assisting clients in buying or selling properties.
S
Suburban Area (): A suburban area is a residential district located on the outskirts of a city, characterized by lower population density, larger homes, and more open spaces compared to urban neighborhoods.
T
Targeted Marketing (): Targeted marketing is a strategy that uses location intelligence to deliver personalized marketing messages to specific consumer segments based on their geographic location and other relevant factors.
Tax Assessment (): A tax assessment is the value assigned to a property by a local government for the purpose of calculating property taxes.
U
Use Description (): A use description is a concise statement that outlines the specific purpose or function of a property, building, or space.
Utility Easement (): A utility easement is a legal right granted to a utility company to use and access a portion of a property owner's land for the purpose of installing, maintaining, or repairing utility lines and equipment.
V
Variance (): A variance is a legal exception to a zoning ordinance, granted by a local government, that allows a property owner to use their land in a way that would otherwise be prohibited under the current zoning regulations.
Virtual Tour (): A virtual tour is an interactive, digital simulation of a property or location that allows users to explore and experience the space remotely, as if they were physically present.
