Common Real Estate Terms

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There are currently 3 names in this directory beginning with the letter F.
Fair Market Value
The Fair Market Value is defined as the most probable price that a property should fetch in a competitive and open market, assuming all conditions necessary for a fair sale are present. This value assumes that the price is not affected by undue stimulus and that both the buyer and seller are acting prudently and knowledgeably. In essence, it represents the theoretical highest price a buyer would pay and the lowest price a seller would accept, given that both parties are willing (but not compelled) to act.
Financing Fees
Financing Fees refer to the charges imposed by the lender at the beginning of the debt service. These fees are also known as finance charges and are typically associated with the processing and initiation of a loan.
Fixed Costs
Fixed Costs are expenses that do not fluctuate with business activities or changes in the level of sales or production. In the context of real estate investment, fixed costs may include loan servicing fees and other recurring expenses that remain relatively constant over time.
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