Delving into real estate can be an excellent venture, even though there are many considerations to look at, such as property types, locations, and amenities. However, those who want to get involved must equip themselves with the basic real estate terms before investing.
Why is this important? Because real estate can be tricky, with so many things to decide upon. It is not just about the properties themselves or the amenities they have. Things such as down payments and taxes are also important to know about.
Having the basic knowledge of real estate can improve one’s decision-making. Not knowing much can lead to bad decisions and poor deals. This can affect the type of lot or location you will get or the gains you can earn from your investment. Understanding things like this can help anyone strike a great deal.
For instance, you need to understand the following terms to budget your investments properly.
2. Earnest Money
As you go through the real estate investment process, you need to learn these things.
6. Buyer’s Market
7. Capital Appreciation
9. Fair Market Value
10. Pre-Qualification Letter
11. Seller’s Market
You also need to know a few words to make sure you’re making money off your investments.
12. Cap Rate
14. Net Operating Income
15. Rental Income
Lastly, these are things that may need consideration from you when you select and look after your property.
16. Buyer’s Agent
17. Commercial Real Estate
18. Heating, Ventilating, and Air Conditioning (HVAC)
19. Raw Land
20. Residential Real Estate
There are still many real estate terms out there that you may encounter. The important thing is that if you are unsure of what to do next, it is best to seek advice before making any hasty decisions. This can avoid any ill-advised choices that will be detrimental long-term.
Below is an infographic of 20 must-know real estate investment terms to widen your real estate investment dictionary and serve as your guide into this venture. It tackles words that may not be common to everyone and discuss them in the simplest way possible.