![]() ![]() (Source: Corporate Finance Institute ) 2. ![]() ![]() It is often expressed in square feet per year for commercial property and units or homes per year for residential property. The rate at which an empty space is leased or purchased within a specified period of time is known as the absorption rate. Often reported as a property’s absorption rate, an absorption is the amount of units or inventory of a particular type of commercial property that was occupied in a given market within a specified time period (usually not exceeding one year). Let’s get started! Ultimate Commercial Real Estate Glossary and Resource 1. In this glossary, you’ll find commercial real estate lease terms, commercial real estate loan terms, commercial real estate finance terms, and other important commercial real estate terms and definitions. It is comprehensive with definitions that are easy to understand. You need this glossary of commercial real estate terms to learn new terminology and make informed decisions. We’ve prepared a comprehensive commercial real estate glossary containing 100 commercial real estate terms to know while buying and selling commercial property. Info provided by, Move Inc.Do you find it challenging to understand commercial real estate terminologies?Ĭommercial real estate, which deals with property used for mainly business-related purposes, can be quite complex.ĭo you find the terminologies used in commercial real estate too complicated? Short sales are an option homeowners use when the bank, credit union or other types of lenders they have borrowed from provides them with the option of selling their home to a third party at a price that is much lower than what they actually still owe on the note of their home loan. Short Sale: A process that is often used by homeowners who are trying to avoid getting caught up in a foreclosure. ![]() Lock Box: A locked key-holding device affixed to a for-sale home so real estate professionals can gain entry into the home after obtaining permission from the listing agent Listing: A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. HDW, HWF, Hdwd: Refers to hardwood floors This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. Closing costs are generally paid through escrow.ĬMA (Competitive market analysis): A CMA is a report that shows prices of homes that are comparable to a subject home and that were recently sold, are currently on the market or were on the market, but not sold within the listing period.Ĭontingency: A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met.įoreclosure: The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. These costs include the brokerage commission, mortgage-related fees, escrow or attorney’s settlement charges, transfer taxes, recording fees, title insurance and so on. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.Ĭlosing Costs: This is the entire package of miscellaneous expenses paid by the buyer and the seller when the real estate deal closes. Usually, the borrower must “qualify” in order to assume the loan.īalloon Mortgage: A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, if there is a home with 5 bedrooms and 4 bathrooms, you would call it a 5B/4BĪppraisal: A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.Īssumable Mortgage: A mortgage that can be assumed by the buyer when a home is sold. This term can be modified to the number of bed/baths in any home. The first (4B) being the number of bedrooms and the last (2B) being the number of bathrooms. Below are some common terms to get you up to speed.ĤB/2B: Refers to the number of bedrooms and bathrooms. Realtors often use jargon or acronyms that are unfamiliar to first-time buyers. ![]()
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