Commonly Used Real Estate Terms - Starting with "A"

Absorption Rate

The rate at which available homes are sold in a specific market during a given time period.

Accessory Dwelling Unit (ADU)

A secondary residential unit on the same lot as a primary residence.

Active

A property that is currently listed for sale and available for purchase.

Active - First Right

A property under contract with a contingency, allowing the seller to continue accepting offers.

Addendum

An additional document attached to a real estate contract that modifies its terms.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a benchmark index.

After Renovation Value (ARV)

The estimated value of a property after renovations are completed.

Amenity

A feature that enhances a property's value, such as a pool, gym, or clubhouse.

Amortization

The process of gradually paying off a loan through regular payments of principal and interest.

Annual Percentage Rate (APR)

The total cost of a loan, including interest and fees, expressed as a yearly percentage.

Appraisal

An expert assessment of a property’s value, typically required by lenders before approving a mortgage.

Appraiser

A licensed professional who estimates the value of a property.

Appreciation

The increase in a property's value over time due to market conditions or improvements.

Arm’s-Length Transaction

A deal where the buyer and seller act independently without pressure or influence from each other.

Assessment

The process of determining a property's value for taxation purposes.

Assessor

A government official who determines the assessed value of properties for taxation.Assessor Parcel Number (APN)

A unique identifier assigned to a parcel of land by the tax assessor’s office.

Assumable Mortgage

A mortgage that allows a buyer to take over the seller’s loan under its existing terms.

Auction

A public sale where properties are sold to the highest bidder.

Average

A statistical measure representing the central value of a set of numbers, often used in real estate to compare property prices.