#1
What does 'ROI' stand for in real estate?
Return on Investment
ExplanationThe measure of profitability of an investment.
#2
Which of the following is NOT a type of real estate investment?
Virtual real estate
ExplanationVirtual real estate is not a physical property but a digital asset.
#3
What is a 'down payment' in real estate?
A payment made by the buyer to secure a property before closing
ExplanationInitial payment made to secure a property purchase.
#4
What does 'FSBO' stand for in real estate?
For Sale By Owner
ExplanationA property listed for sale by its owner without a real estate agent.
#5
What is 'depreciation' in real estate?
The process of deducting the cost of an asset over time for tax purposes
ExplanationGradual decrease in the value of an asset for tax purposes.
#6
What is 'appraisal' in real estate?
The process of determining the value of a property
ExplanationAssessing the monetary value of a property.
#7
What does 'MLS' stand for in real estate?
Multiple Listing Service
ExplanationA database of properties listed for sale.
#8
What is 'zoning' in real estate?
The process of dividing a property into zones for different uses
ExplanationAllocating specific land uses to different areas.
#9
What does 'CAP rate' stand for in real estate investment?
Capitalization Rate
ExplanationThe rate of return on a real estate investment.
#10
What is 'lien' in real estate?
A legal claim on property as security for a debt
ExplanationLegal right to claim property as collateral for a debt.
#11
What is 'amortization' in real estate?
The process of paying off a loan over time with regular payments
ExplanationGradual repayment of a loan through scheduled installments.
#12
What is 'escrow' in real estate?
A financial arrangement where a third party holds and regulates payment of funds required for two parties involved in a transaction
ExplanationSecure holding of funds in a transaction until conditions are met.
#13
What is 'title insurance' in real estate?
Insurance that protects against legal defects in property title
ExplanationCoverage against legal issues with property ownership.
#14
What is a 'home appraisal' in real estate?
An estimation of a property's value by a licensed appraiser
ExplanationProfessional assessment of a property's value.
#15
What is 'closing costs' in real estate?
The fees associated with closing a property transaction
ExplanationExpenses incurred during the finalization of a property sale.