Real Estate Terminology Concepts Quiz

The expenses associated with the movement of people and goods between locations, influenced by activity at a certain place.

The geographic area from which tenants are likely to come to a property.

The revenue a property would generate if fully occupied at market rents, without accounting for uncollectible rent.

The geographic area from which a shopping center draws the majority of its customers.

A decrease in value due to a property's outdated or inefficient design, even if it's in good physical condition.

The income remaining after deducting operating expenses (excluding debt service) from the potential gross income.

The expenses associated with the day-to-day operation of a property, like utilities, property taxes, and maintenance.

The total income a property generates after subtracting vacancy allowance from the potential gross income.

The ability of a property to effectively perform its intended function. It considers how well a property is designed and built for its intended purpose, and whether it meets the needs of its users.

A method of predicting future profits or returns from a real estate investment. It considers past performance, anticipated changes in the market, and potential future trends.

Factors that narrow down the search for properties to use as comparable samples in real estate valuation. These factors include the location, amenities, and functional efficiency of similar properties.

A type of operating expense, often a major expense, that refers to taxes levied by a local government on a property based on its value.

A type of operating expense that includes costs associated with maintaining the physical condition of a property, such as repairs, renovations, and routine upkeep.

A type of tax that's not considered an operating expense in real estate. It's a tax on income generated from a property, not an expense related to its operation.

The total potential income a property could generate if fully occupied at market rents, without considering vacancies or bad debts.

The difference between effective gross income and operating expenses, showing how much income is left after paying to run the property.

The cash flow remaining after paying all operating expenses, debt payments, and income taxes. Represents the investor's return.