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Tips to Increase the Value of Real Estate

View Park image Increase your real estate value by following some simple steps. To have a prospective buyer’s interest at your place you need to increase the value of your house and it should not cost much in the improvements of the house. Read more

Invest in a Down Real Estate Market

View Park image When the real estate market is down, in most of the cases the prices of properties becomes very low. By following some simple guidelines you can make your real estate investment profitable even in a down real estate market. Read more

5 Mistakes Made in Real Estate Investments

View Park image Real estate investment is one of the best investment options for anyone. Before investing on any property there are a few things to keep in mind. Some of the most common mistakes made by investors are Read more
Home View Park Real Estate Blog Real Estate Terms

Real Estate Terms

A good real estate investor should be well aware of all the terms used in the real estate business. Real estate consists of any land, buildings or property that is stationary or fixed in location. Real estate investment is a type of investment done on any property.

Some common terms used in the real estate business are:

1. Real Estate Agent or Broker:

An agent or broker is a person who acts as a mediator between the buyers and sellers of real estate. In some countries the functionalities of real estate agents and brokers differ. Real estate agents earn a commission on a successful transaction.  

2. Realtor:

A realtor is a person who is a member of National Association of Realtors. All realtors are brokers or salespersons. The members of realtors have pledged to follow a code of ethics and standards of practice.

3. Flipping:

Buying a property and then quickly reselling it to make some profit is called 
flipping. Investors buy a property at what they feel is a low price, make needed repairs and renovations to the property and then sell it quickly at a higher price.
This way the investors are gaining some money through flipping the property.

4. Mortgage:

Mortgage is giving the interest of the property to the lender as security to the loan amount. In most cases a substantial amount of money is involved in financing a property.  Therefore, the lender will need some security for the loan and the property is used as the security.

5. Real Estate Bubble or Property Bubble:

It is a type of economic bubble (trade in high volumes at prices that are considerably at variance with intrinsic values) that periodically occurs in the local or global real estate market. It is distinguished by high increases in valuation of real property.

6. Foreclosure:

Foreclosure is the legal and professional proceeding in which a lender obtains a court ordered termination of a borrower’s equitable right of redemption. If the borrower defaults, the lender tries to repossess the property. The courts can grant the owner the right of redemption if the borrower repays the debt.

7. Real Estate Appraisal:

It is a practice where the value of the property is analyzed according to the current market. A real estate appraisal is prepared by a licensed or certified appraiser or property valuer.

8. Real Estate Wholesaler

A real estate wholesaler is a person who purchases properties that have substantial equity in them and sells the properties to investors for a profit. The real estate wholesaler may have purchased the property outright or will have purchased an option on the property to purchase the property at a specified price by a specific date, so the wholesaler may have financial obligation in the property.

 

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