A tax-deferred exchange that allows investors to sell a property and reinvest proceeds into a like-kind property, deferring capital gains taxes.

The rate at which available homes are sold in a market during a specific time period. Indicates whether it's a buyer's or seller's market.

A professional assessment of a property's market value by a licensed appraiser. Required by lenders before approving a mortgage.

A mortgage with an interest rate that changes periodically based on market conditions. Typically starts lower than fixed rates but carries risk of increases.

AI-powered algorithms that estimate property values using data analysis, comparable sales, and market trends. Used by Zillow's Zestimate and similar tools.

One hundredth of a percentage point. Used in mortgage rates and financial markets. A rate move from 6.50% to 6.75% is a 25 basis point increase.

The ratio of net operating income to property value, used to estimate return on investment. A 7% cap rate means the property generates 7% of its value annually.

The annual pre-tax cash flow divided by total cash invested. Measures the actual return on the cash you put into a deal, not the total property value.

A classification system for commercial real estate. Class A: premium, newest buildings. Class B: older but well-maintained. Class C: older buildings needing renovation.

AI systems that analyze property photos and satellite imagery to assess condition, estimate renovation costs, and detect features automatically.

Monthly debt payments divided by gross monthly income. Lenders typically require DTI below 43% for conventional mortgages.

A neutral third party that holds funds and documents during a real estate transaction until all conditions are met, protecting both buyer and seller.

Property price divided by gross annual rental income. A quick way to compare investment properties — lower GRM generally means better value.

The ratio of a mortgage loan to the appraised value of the property. An 80% LTV means you're borrowing 80% of the property's value.

Natural Language Processing applied to real estate — AI that reads and analyzes property listings, news, and regulatory documents to extract market insights.

Total income from a property minus operating expenses, excluding mortgage payments and taxes. The key metric for evaluating commercial real estate.

Property Technology — the application of technology and software to real estate markets, including AI-powered valuation, virtual tours, and smart building systems.

Real Estate Investment Trust — a company that owns, operates, or finances income-producing real estate. REITs trade like stocks and must distribute 90% of taxable income as dividends.

The process of converting real estate assets into digital tokens on a blockchain, enabling fractional ownership and easier trading of property shares.

The difference between mortgage rates and Treasury bond yields. A widening spread means lenders are charging more relative to their borrowing costs.