Archives: Glossary Terms

The sum of money allotted to cover future anticipated maintenance expenses.

The investment in professional property management that can be set as a fixed percentage of total rental income generated by the property managed or as a flat fee or any other agreed-upon method. Example: Acme Management Company is employed by several property owners to oversee and collect rent for their properties. Acme’s standard management fee is 5% of gross rental income.

A set of arrangements for bringing buyers and sellers together through the price mechanism. A buyer’s market is a market in which buyers can fulfill their desires at lower prices and on more advantageous terms than those prevailing earlier. It is a market characterized by many properties available and few potential users demanding them at prevailing prices. A capital market is comprised of the activities of all lenders and borrowers of equity and long-term debt funds. A money market is a market for borrowed funds, generally short-term. A seller’s market is a market in which potential sellers can sell at prices higher than those prevailing in an immediately preceding period. It is a market characterized by very few properties available and a large number of users and potential users demanding them at prevailing prices.

An estimate of value developed for the purpose of arriving at a selling or market price.

The sign posts or indexes of market activity.

The price paid regardless of external influences such as pressure, motive or intelligence.

The amount for rent that can be charged by pricing the rent at a level near that of similar properties in the market area.

The sum of money that the presence of a structure – based on its highest and best use – adds to or subtracts from the value of the land on which it sits.

The ease and speed with which a property can be sold at or near its market value based on its expected market appeal. Example: A single-family house in an active market typically provides greater marketability than a farm or ranch in a rural area.

Any fact that would affect the judgment or decision making of a person in giving his or her consent to enter into a particular transaction based on the proposed terms and one which an agent must disclose about his non-client to his or her principal and one which an agent must disclose about the property or the area to his non-clients.