HouseCanary Glossary: Key Real Estate Terms

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The real estate sales, appraisal and valuation worlds can seem like a sea of alphabet soup. We’re here to help! Here are some of the most common real estate acronyms for investors, spelled them out and explained.

A

1031 Exchange: A tax-deferred transaction that allows real estate investors to sell one property and purchase another of equal or greater value without paying capital gains tax immediately.
Absorption Rate: The pace at which available homes in a particular market are sold over a given period of time.
Abstract of Title: A summary of the legal history of a property, including previous owners, transfers, and any claims against it.
Acceleration Clause: A clause in a mortgage contract that allows the lender to demand full repayment if the borrower defaults.
Active Income: Income earned from work, such as wages or salaries, as opposed to passive income from investments.
Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that changes periodically, leading to varying monthly payments.
Agile Evaluation: A condition-informed property valuation that integrates on-site inspections with automated models for faster, more accurate results.
Agile Insights: A fully automated contextual property valuation tool that provides instant insights into property values and surrounding neighborhoods Learn more.
Aggregation: The process of compiling and summarizing data from multiple sources.
Affordability Index: A measure of whether an average family can afford to buy a home, considering median home prices, income, and mortgage rates.
After-Repair Value (ARV): The estimated value of a property after renovations are completed.
Amortization: The gradual repayment of a loan through regular payments that cover both the principal and interest.
Annual Percentage Rate (APR): The total cost of borrowing a loan, including interest rates and other associated fees, expressed as a percentage.
Anywhere Real Estate: A global real estate services company offering a suite of brands and services that help agents and brokers streamline residential transactions.
API (Application Programming Interface): A set of rules that allows different software applications to communicate. It defines how requests and responses are structured, enabling developers to use a system's functionality without needing to understand its inner workings. For example, HouseCanary’s API allows a real estate app to request data from a HouseCanary’s Data Explorer API to display property values.
Appraisal: An evaluation of a property’s market value by a licensed appraiser, typically required by lenders.
Appreciation: The increase in a property’s value over time due to market conditions or improvements.
Artificial Intelligence (AI): The simulation of human intelligence in machines designed to perform tasks such as learning, reasoning, and problem-solving.
As-Is Value: The current market value of a property without any improvements or renovations.
Asset Disposition: The process of selling or otherwise disposing of a property within an investment portfolio.
Asset Management: The process of managing and overseeing a portfolio of real estate investments to maximize returns.
Assessed Value: The dollar value assigned to a property by a public tax assessor for the purpose of determining property taxes.
Assignment of Mortgage: A transfer of a mortgage from one lender to another.
Assumable Mortgage: A mortgage that can be transferred from the seller to the buyer without changing the loan terms.
ATTOM Data: A property data company providing real estate, mortgage, and neighborhood data to power various industries, from real estate to insurance.
Automated Valuation Model (AVM): A computer-generated property valuation method that uses public records, market trends, and comparable sales data.
AVM Confidence Score: A metric that indicates the reliability or accuracy of an AVM valuation, usually expressed as a percentage.

B

Balloon Payment: A large payment due at the end of a loan term, often found in short-term or interest-only loans.
Basis: The original cost of a property, used to determine capital gains or losses when the property is sold.
Bidding War: A situation where multiple buyers compete for a property, often driving the price above the listing price.
BiggerPockets: A real estate investing platform and community offering resources, education, and networking opportunities for investors of all experience levels.
Block Group: A geographic unit used in census data to represent small, local areas.
Block Valuation: A method for assessing the value of all properties within a specific block or small geographic area.
Bridge Loan: A short-term loan used to bridge the gap between purchasing a new property and selling an existing one.
Broker Price Opinion (BPO): An estimated property value provided by a real estate broker, often used instead of an appraisal for lending or investment decisions Learn more.
Build-to-Rent (BTR): A development model where homes are constructed specifically for long-term rental purposes.
Bulk Valuation: The process of valuing multiple properties at once, often used by large investors or lenders managing property portfolios.
Buy and Hold: An investment strategy where a property is purchased and held for a long time, allowing for appreciation and rental income.
Buyer's Market: When there are more homes for sale than buyers, giving buyers negotiating power.

C

CanaryAI: A cutting-edge AI-driven tool by HouseCanary that enhances property valuation and decision-making through advanced data analytics and machine learning Learn more.
Capital Expenditures (CapEx): Major expenses used to improve or upgrade a property, such as renovations or repairs.
Cap Rate (Capitalization Rate): A ratio that helps investors compare potential returns on investment properties, calculated by dividing the net operating income by the property’s market value.
Cash Flow: The net income generated from a rental property after all operating expenses and mortgage payments are made.
Cash-on-Cash Return: A metric that calculates the return on investment based on the actual cash invested in a property.
Capital Gains Tax: The tax on the profit made from selling an asset, such as a property.
Capital Improvement: Major repairs or upgrades to a property that increase its value or extend its useful life.
Certificate of Occupancy (CO): A document issued by local authorities certifying that a property meets building codes and is safe for occupancy.
Chain of Title: A history of ownership transfers for a particular property.
Closing Costs: Fees and expenses associated with the purchase or sale of a property, typically paid at the time of closing.
Closing Disclosure (CD): A final statement provided to the buyer detailing all costs associated with the mortgage and the home purchase.
Cloud on Title: Any claim or dispute that could affect the ownership of a property.
ComeHome: A comprehensive real estate platform by HouseCanary that offers property search tools, home valuations, and market insights for agents and consumers Learn more.
Comparable Market Analysis (CMA): A report comparing similar properties to help estimate the market value of a home.
Comparables (Comps): Recently sold properties that are similar to the subject property and used to determine its value.
Comparable Rent: The rent charged for similar properties in the same area, used to estimate the rental value of a subject property.
Comparable Sales Approach: A valuation method that compares the subject property to similar properties recently sold in the same area.
Compass Real Estate: A real estate brokerage that leverages technology and data-driven tools to enhance the buying, selling, and renting process for agents and clients.
Contingency: A condition that must be met for a real estate contract to be legally binding, such as financing or inspection approval.
Collateral: Property pledged as security for a loan, such as a home in the case of a mortgage.
Commercial Real Estate (CRE): Property used for business purposes, such as office buildings or shopping centers.
Condition-Informed Valuation: A valuation method that includes property condition data, often obtained through an on-site inspection or photo analysis.
Condition Rating: An evaluation of a property’s current state or quality based on an on-site inspection or photos.
Condition Score (C1-C6): A grading system for the physical condition of a property, from C1 (best) to C6 (worst).
Consumer Mortgage: A loan given to an individual to purchase a home.
Contingency: A condition in a real estate contract that must be met for the deal to proceed, such as obtaining financing or passing an inspection.
CoreLogic: A global property information, analytics, and data services provider, specializing in real estate, mortgage, and insurance sectors.
Cost Segregation: A tax strategy that accelerates depreciation on components of a property to reduce taxable income.
Covenant: A legal agreement that outlines certain conditions tied to a property, such as usage restrictions or maintenance requirements.
CC&R — Covenants, Conditions and Restrictions: CC&Rs are limits or rules placed on homeowners, typically by a homeowner’s association (HOA). CC&Rs must be acknowledged and signed by buyers who want to move into a home in an HOA. Members of the HOA can also contest the CC&Rs in hopes of changing them.
Custom Buy Box: A set of investment criteria used by investors to filter and identify suitable real estate properties.

D

Data Explorer: A tool by HouseCanary that provides access to real estate data and analytics across millions of U.S. properties for investment decisions Learn more.
Days on Market (DOM): The number of days a property is listed before it sells.
Debt Coverage Ratio (DCR): A financial metric used by lenders to assess a property's ability to cover its debt payments, calculated by dividing net operating income by debt service.
DTI — Debt-To-Income: DTI is a metric that lenders analyze when considering whether to issue a loan to a specific borrower. Usually expressed as a ratio, DTI calculates the total amount of debt that the borrower has against his or her income in order to assess the borrower’s ability to repay a loan.
Default: Failure to meet the terms of a mortgage, typically by missing payments.
Depreciation: A tax deduction reflecting the decrease in a property’s value over time due to wear and tear.
Desktop Valuation: A property appraisal conducted remotely, without a physical inspection, using online data and tools.
Disaster Area: A region affected by natural disasters like floods, hurricanes, or fires, impacting property values.
Distressed Property: A property in poor condition or facing financial difficulties, often sold below market value.
Down Payment: The portion of a property's purchase price that a buyer pays upfront, usually 5-20% of the total price.
Due Diligence: The process of thoroughly investigating a property before purchase, including inspections and title reviews.

E

Earnest Money: A deposit made by a buyer to show serious intent to purchase a property, held in escrow until the deal closes.
Easement: A legal right to use another person’s land for a specific purpose, such as utility access or a shared driveway.
Effective Gross Income (EGI): The total potential income from a property after accounting for vacancy losses but before operating expenses.
Eminent Domain: The government’s power to take private property for public use, such as for building highways, with compensation to the owner.
Encroachment: When a structure, such as a fence or shed, extends onto someone else’s property without permission.
Encumbrance: A legal claim or liability against a property, such as a mortgage or lien, that affects its transferability.
Equity: The difference between a property's market value and the amount owed on any mortgages or liens.
Equity Risk: The potential financial risk associated with the value of a homeowner's equity in a property.
Escrow: A neutral third party that holds funds or documents until all conditions of a real estate transaction are met.

F

Fair Housing Act: A federal law that prohibits discrimination in housing based on race, color, religion, sex, national origin, disability, or familial status.
Fair Market Value (FMV): The price a property would sell for in an open and competitive market.
Fannie Mae: A government-sponsored enterprise that buys mortgages from lenders to ensure stability in the mortgage market.
FEMA — Federal Emergency Management Agency: FEMA was implemented in 1979 as part of the U.S. Department of Homeland Security. FEMA’s primary directive is to coordinate the federal response to natural disasters and emergencies, and it also manages the National Flood Insurance Program (NFIP).
FHA Loan: A government-backed mortgage insured by the Federal Housing Administration, typically used by first-time homebuyers with lower down payment requirements.
First American: A leading provider of title insurance, settlement services, and risk solutions for real estate transactions, with a focus on protecting property ownership.
FRM — Fixed-Rate Mortgage: A fixed-rate mortgage is a popular type of home loan wherein the borrower locks in the interest rate at the beginning of the loan and continues to pay back the loan at that interest rate, regardless of inflation or credit-market activity.
Fix-and-Flip: A real estate investment strategy where an investor buys a property, renovates it, and then sells it for a profit.
Fix-and-Hold: A real estate strategy where investors buy, renovate, and then rent out properties for long-term cash flow.
Flood Zone: An area designated by FEMA as at risk for flooding, which may impact property values and insurance.
Foreclosure: The legal process by which a lender takes ownership of a property when the borrower fails to make mortgage payments.
FSBO — For Sale By Owner: An FSBO (pronounced “fisbo”) property is a property that’s being sold directly by the owner without the help of a real estate agent.
Freddie Mac: A government-sponsored enterprise that buys mortgages from lenders to provide liquidity to the mortgage market.

G

Geographic Competency: Understanding of real estate market conditions in a specific geographic location.
Gross Rent Multiplier (GRM): A method for estimating the value of an income-producing property, calculated by dividing the property’s sale price by its gross rental income.
Gross Living Area (GLA): The total square footage of the interior living spaces in a home.

H

Hard Money Loan: A short-term, high-interest loan secured by real estate, typically used by investors for fix-and-flip projects.
Heat Maps: Visual representations of data, often showing areas of high or low property values or activity.
Historical Appreciation Rate: The rate at which a property’s value has increased over time, based on historical sales data.
Historical Market Trends: Data showing how property prices and demand have changed over time in a specific area.
HELOC — Home Equity Line of Credit: In a HELOC, a lender agrees to extend a line of credit up to a certain amount to a homeowner. The homeowner uses equity in the home as collateral against the loan. Borrowers pay interest on HELOCs, and after the “draw period” during which the borrower can use the line of credit (usually about 5 to 10 years), the borrower must begin repaying the loan in full.
HOA — Homeowners’ Association: HOAs are private associations that dictate standards in specific residential areas. Homeowners are required to pay HOA fees and must sign a contract upon buying the home that says they will abide by HOA guidelines, which can regulate everything from paint color and the appearance of the house to vehicle storage and noise and smell restrictions. The rules established by HOAs are known as Covenants, Conditions and Restrictions (CC&Rs).
Holding Costs: The expenses incurred while owning a property, such as taxes, insurance, and maintenance, while waiting to sell or rent it.
HPI — House/Home Price Index: An HPI tracks the change in home price over time in a specific geographic region. It’s one method of telling whether home prices are generally rising or falling. The Federal Housing Finance Agency (FHFA) releases a quarterly HPI, and Case-Shiller and CoreLogic are two for-profit companies that also calculate and track HPI.
HouseCanary API: A set of programming tools that allow users to access HouseCanary’s data and analytics programmatically.
HouseCanary Value: HouseCanary’s market-leading accuracy in automated home valuations is achieved by streamlining, curating, and merging scattershot real estate data from hundreds of sources, then examining these curated data sets with our proprietary valuation algorithms, using a multistep process that assesses the housing market and dozens more data points to identify which factors have the biggest influence on a home’s value in each market.

I

ICE Mortgage Technology: A platform that offers end-to-end mortgage technology solutions, including loan origination and automation, as part of Intercontinental Exchange (ICE).
Income Property: A property purchased with the intention of generating income, usually through rental payments.
Infill Development: Developing vacant or underused land within an existing urban area to maximize property use.
Industry-Grade Valuations: Property valuations that meet professional and regulatory standards for use in financial transactions.
Inspection: An evaluation of a property’s condition, typically conducted by a professional before a sale is finalized.
Inspection Contingency: A clause in a purchase contract that allows the buyer to back out if a property inspection reveals major issues.
Instant Geographic Competency: The ability to quickly understand real estate market dynamics in a specific area using digital tools.
Interest Rate: The percentage of a loan amount that a lender charges as interest over time.
Internal Rate of Return (IRR): A calculation used to measure the profitability of a real estate investment over time, considering both income and expenses.

J

Joint Tenancy: A form of property ownership where two or more people own a property together, with rights of survivorship.
Jumbo Loan: A mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac.

L

Lease Option: A rental agreement that gives the tenant the option to buy the property at the end of the lease.
Lender: A financial institution or individual that provides loans to property buyers.
Lien: A legal claim against a property, typically for unpaid debts like a mortgage or taxes.
Liquidity: The ease with which a property can be bought or sold in the market without affecting its price.
Loan Estimate: A document provided by a lender that outlines the key terms, costs, and conditions of a mortgage.
Loan Servicing: The process of managing and administering a mortgage loan, including collecting payments and managing escrow accounts.
Loan-to-Value (LTV) Ratio: A ratio used by lenders to compare the loan amount to the appraised value of the property, expressed as a percentage.
Lot: A parcel of land designated for building or development. A lot's size and dimensions can determine what type of structure can be built on it.

M

Market Health: The overall state of a real estate market, including factors like supply and demand, vacancy rates, and price trends.
Market Grade: A HouseCanary score or assessment that indicates the health or risk level of a real estate market.
Market Insights: HouseCanary’s data-driven tools that offer property and market-level information to inform investment decisions Learn more.
Market Pulse Analytics: HouseCanary’s weekly aggregated metrics on real estate market trends, provided by HouseCanary.
Market Rent: The amount of rent a property can command in the open market based on similar properties in the area.
Market Volatility: The degree of variation in property prices over time, indicating the stability or risk in a specific real estate market.
Master Planned Community: A large-scale residential development that includes homes, parks, schools, and commercial areas, all planned and developed by a single entity.
Mechanic’s Lien: A legal claim filed by contractors or suppliers against a property for unpaid work or materials.
Metropolitan Statistical Area (MSA): A geographical region with a high population density and close economic ties throughout the area.
Mixed-Use Development: A real estate project that combines residential, commercial, and sometimes industrial spaces in one location.
MLS — Multiple Listing Service: The MLS is the local repository for real estate listings and data. In 2011, there were 883 different MLSs in the country, but consolidation by way of mergers has decreased that number. Agents and brokers list homes for sale on the MLS (which is why for-sale homes are also called “listings”), and they can also find homes for sale that might interest their buyer clients on the MLS.
Mortgage: A loan used to purchase property, with the property serving as collateral for the loan.
Mortgage Insurance Premium (MIP)
A fee paid by borrowers of FHA loans to protect lenders in case the borrower defaults on the loan.
Mortgage Note: A legal document outlining the terms of a loan, including the amount borrowed, interest rate, and repayment schedule.

N

NFIP — National Flood Insurance Program: The NFIP gives property owners the ability to secure government-administered flood insurance; in areas that participate in the NFIP, property owners are required to carry flood insurance on their properties. Most of those participation-mandatory communities are in Texas and Florida.
Neighborhood Heat Maps: HouseCanary maps displaying property values, trends, and conditions within specific neighborhoods.
Negative Amortization: Occurs when loan payments are not enough to cover the interest due, causing the loan balance to increase over time.
Net Operating Income (NOI): The income generated from a property after operating expenses are deducted, not including mortgage payments or taxes.
Non-Distressed Sale: A sale where the property is not under foreclosure or financial distress.
NOO — Non-Owner Occupied: NOO properties are not occupied by the owners. Typically, the owner is instead renting the home, condo, or apartment, either to long-term renters through leases that last several months, or short-term renters through leases that last just a few days or weeks.
NPL — Non-Performing Loans: An NPL describes a loan on which the borrower is not currently paying either interest or principal payments. Local regulations determine when a bank can classify a loan as non-performing and when the loan is considered in default. Typically, a bank or lender will categorize an NPL after 90 days of missed payments.
Notice of Default: A formal notice given to a borrower stating that they have failed to make payments on a loan, which could lead to foreclosure if not addressed.

O

Off-Market Property: A property that is not listed for sale on the open market but may still be available for purchase.
On-Market Property: A property that is currently listed for sale or rent.
Option Contract: An agreement that gives a buyer the right, but not the obligation, to purchase a property at a specific price within a set time frame.
Operating Expenses: The day-to-day costs associated with maintaining a property, including utilities, repairs, property management, and taxes.
Opportunity Zone: A designated area that provides tax incentives for real estate investments to encourage economic development.
Origination Fee: A fee charged by lenders for processing a new mortgage loan, typically expressed as a percentage of the loan amount.
Owner Financing: A situation where the seller provides financing to the buyer directly, instead of the buyer obtaining a loan from a traditional lender.
Ownership Interest: The extent of an owner’s rights in a property, which could include full ownership, joint ownership, or a partial interest.
Owner-Occupied Property: A property where the owner lives, as opposed to renting it out.

P

Passive Income: Income generated from rental properties or other investments that require minimal active management.
Planned Unit Development (PUD): A residential development that includes homes, shared amenities, and sometimes commercial properties, all governed by a homeowners association (HOA).
Points: Fees paid to a lender at closing to reduce the interest rate on a mortgage. Each point typically costs 1% of the loan amount.
Portfolio Monitoring: A HouseCanary solution used by investors to track key performance metrics and values of properties in their real estate portfolio Learn more.
Pre-Renovation Value: The value of a property before renovations are made.
Principal: The original amount borrowed in a loan, not including interest.
Property Explorer: A HouseCanary tool that allows users to perform desktop valuations and select comparable properties for underwriting or investment decisions.
Pre-Approval: A lender's evaluation that determines how much they are willing to loan to a potential buyer based on their financial situation.
Prepayment Penalty: A fee charged by some lenders if the borrower pays off a mortgage before the end of its term.
Pre-Qualification: A preliminary estimate of how much a buyer might be able to borrow based on their income, assets, and debts.
Price Forecast: An estimate of future property values based on market trends and data.
Price Per Square Foot: A metric that divides a property’s sale or listing price by its total square footage.
Price Reduction: A decrease in the asking price of a property listed for sale.
Principal: The original amount of money borrowed in a loan, excluding interest. The principal is reduced with each loan payment.
Probate Sale: A sale of property owned by someone who has died without leaving a will. The sale is typically supervised by a court.
Pro Forma: A financial projection that estimates a property’s future income, expenses, and return on investment.
Property Explorer: A tool by HouseCanary that allows users to perform desktop valuations and select comparable properties for underwriting or investment decisions Learn more.
Property Management: The management of rental properties by a third-party service, handling responsibilities like tenant screening, rent collection, and maintenance.
Property Tax: Taxes levied on real estate by local governments, based on the property’s assessed value.
Public Record Data: Information about properties collected by government agencies, including tax records, sales history, and ownership.
Purchase Agreement: A legally binding document outlining the terms of a real estate sale between a buyer and seller.

Q

Quitclaim Deed: A deed that transfers a person’s ownership interest in a property without making any guarantees about the property's title.

R

Real Estate Investment Analysis: The process of evaluating potential real estate investments by analyzing market data, property condition, and financial performance.
Real Estate Investment Trust (REIT): A company that owns, operates, or finances income-generating real estate and allows investors to buy shares.
REO — Real Estate Owned: An REO property is a home owned by a bank, government agency, or government loan insurer. REO properties have been foreclosed but typically did not sell at auction after the foreclosure, so the bank, agency, or insurer that’s now responsible for the mortgage loan retains the property as an asset.
Real-Time Updates: Immediate, up-to-date information on property conditions, values, and market trends.
Realtor.com: An online real estate platform offering property listings, market insights, and tools for home buyers, sellers, and real estate professionals.
Redfin: A technology-powered real estate brokerage that offers home buying, selling, and listing services, along with real-time market data and insights.
RE/MAX: A global real estate network known for its vast reach and franchise model, empowering agents to operate independently under a recognized brand.
Rental Comps: Comparable rental properties used to estimate the rental value of a subject property.
Rental Estimate: Our rental estimate uses monthly rent data from all available nearby properties, adjusted for bedroom count, square footage, and other attributes and features that affect rent in this ZIP code. We look at current rental homes in addition to homes that have been used as rentals in the past, examine how those rent prices shift in the context of the local market, and use that information to generate the rental estimate.
Rent Roll: A document that lists all tenants in a rental property along with the terms of their leases and rent payments.
Rent-to-Own: An agreement where a tenant rents a property with the option to purchase it at the end of the lease term.
Rental Valuation: The estimated market value of a property for rental purposes.
Rental Yield: The return on investment from a rental property, calculated as rental income divided by the property’s value.
Return on Investment (ROI): A measure of the profitability of an investment, expressed as a percentage of the initial investment.
Replacement Cost: The cost to rebuild or replace a property with a similar one, often used in property insurance policies.
Reverse Mortgage: A type of loan for homeowners aged 62 or older that allows them to convert part of their home’s equity into cash. The loan is typically repaid when the homeowner moves or passes away.
Right of First Refusal: A contractual right that gives an individual the option to purchase a property before the owner offers it to someone else.
Risk-Adjusted Return: A calculation that measures the profitability of an investment after accounting for the risk involved.
Risk Mitigation: Strategies used to minimize the financial risks associated with real estate investments.
Risk of Decline: A HouseCanary measure of the likelihood that a property’s value will decrease over time.

S

Sales History: A record of all past transactions and prices for a specific property.
Sale-Leaseback: A transaction where the owner of a property sells it and then leases it back from the buyer, allowing the seller to continue using the property while freeing up capital.
Section 8 Housing: A federal housing assistance program that provides rental subsidies to low-income tenants.
Seller Disclosure: A document in which the seller outlines any known defects or issues with the property. Required in many states.
Seller Financing: A financing arrangement where the seller provides the buyer with a loan to purchase the property, bypassing traditional lenders.
Short Sale: A sale where the seller's proceeds are less than the amount owed on the mortgage, typically approved by the lender to avoid foreclosure.
Single-Family Home: A residential property designed to house one family, as opposed to a multi-unit property.
Single-Family Rental (SFR): A single-family home that is owned by an investor and rented out to tenants.
Special Assessment: A fee imposed by a homeowners association or local government to cover the cost of specific projects, such as road repairs or new amenities.
Sublease: A lease agreement where the original tenant rents out the property to another tenant, while still being responsible for the rent payments.
Survey: A detailed map that shows the boundaries, dimensions, and features of a property, often required for property transactions.
Supply vs. Demand Imbalance: A market condition where the supply of available properties doesn’t match the demand, often affecting property prices.
Sweat Equity: The value added to a property through the labor or work of the property owner, such as DIY improvements.
Syndication: A partnership between multiple investors who pool their resources to buy and manage a larger property, like an apartment complex or commercial space.

T

Tax Lien: A legal claim by the government against a property for unpaid taxes, which can prevent the property from being sold or refinanced.
Tenant Improvements (TI): Upgrades or modifications made to a rental property by or for a tenant, often as part of a lease agreement in commercial real estate.
Title: Legal documentation that proves ownership of a property.
Title Insurance: Insurance that protects the buyer and lender against issues with the property’s title, such as liens or disputes over ownership.
Title Search: A review of public records to ensure a property’s ownership is clear and to identify any potential liens or encumbrances.
Transaction History: A summary of all events related to the sale or transfer of a property.
Transfer Tax: A tax imposed by state or local governments on the transfer of property ownership.
Triage Loans: The process of prioritizing and assessing loan applications based on the risk or collateral value of properties.
Triple-Net Lease (NNN): A lease agreement where the tenant is responsible for paying property taxes, insurance, and maintenance in addition to rent.
Turnkey Property: A fully renovated and ready-to-occupy property, often marketed to investors who want minimal involvement.

U

Underwriting: The process by which lenders assess the risk of granting a loan, typically by reviewing the borrower’s financial history and the property’s value.
Under-Performing Property: A property that does not generate the expected income or return on investment.
Urban Infill: The development of vacant or underutilized land in an urban area, often to increase density and use existing infrastructure more efficiently.

V

Vacancy Rate: The percentage of available rental units that are vacant at any given time.
Valuation: The process of determining the market value of a property through an appraisal or analysis of comparable properties.
Value by Six Conditions: A feature in HouseCanary Property Explorer that shows property valuations under six different condition categories (C1-C6).
Valuation Error Rate: The percentage difference between a property’s AVM estimate and its actual sale price.
Variable Rate Mortgage: Another term for an adjustable-rate mortgage, where the interest rate changes over time based on market conditions.
Vesting: The way in which property ownership is held, such as joint tenancy or tenants in common.

W

Walkthrough: A final inspection of a property by the buyer before closing, allowing them to confirm that the property is in the agreed-upon condition.
Warranty Deed: A legal document in which the seller guarantees that they hold clear title to the property and can transfer it to the buyer without any encumbrances.
Wraparound Mortgage: A secondary financing option where the new mortgage wraps around the existing one, allowing the buyer to make payments on both loans together.

Z

Zillow: A popular real estate marketplace that provides users with property listings, home value estimates, and rental information, along with mortgage tools.
Zoning: Local government laws that dictate how a property can be used, such as for residential, commercial, or industrial purposes.
Zoning Variance: A special permission granted by local authorities allowing a property to be used in a way that deviates from current zoning regulations.

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