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- A buyer whose purchase agreement includes a contingency that allows the seller to continue to market the home to other prospective buyers. For instance, a buyer may agree to buy the home only if they can sell their own home first. That buyer can be bumped if a better offer comes along.
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Jul 8, 2024 · Learn top real estate definitions every investor needs to know. Including examples, formulas and tips to explain real estate investing.
Jul 13, 2021 · This can be intimidating to property investing newbies, so we’re breaking down some common real estate investment terms in a reader-friendly glossary. Check out our list of real estate investment terms every investor should know and add some new lingo to your lexicon.
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- Note: Letters of the alphabet without a relevant term are not listed.
- Adjustable-rate mortgage (ARM): A mortgage loan with an interest rate that can change throughout the loan’s lifetime.
- Agent: A real estate professional that is legally licensed to buy and sell property on behalf of their clients. An agent cannot operate independently, they must work under a licensed broker.
- Amortization: The process of gradually reducing mortgage loan debt over time by establishing scheduled monthly payments. The interest payment of an amortized loan will decrease as time goes on, while the principal payment will increase.
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Feb 10, 2023 · The terms in real estate investing might seem daunting, but you only really struggle in the beginning when each definition feels like it uses other real estate terms you don’t know. Once you grasp the main real estate vocabulary, the rest comes together easily enough. ♦