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Common Joe 'n Jane Real Estate Wiki

Your down-to-earth guide to mastering real estate exam terms and concepts! We've stripped away the industry jargon and complex language, breaking down intricate ideas into bite-sized, easy-to-digest pieces for all the common "Joe 'n Jane's" out there.

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Observed Condition Method: Observed Condition Method: The observed condition method is a way for real estate appraisers to figure out the value of a property by looking at its current state and comparing it to how it looked when it was brand new. The appraiser uses... (Read more)
Obsolescence: Obsolescence: Obsolescence is when something loses value because it's no longer as useful or desirable as it once was. This can happen for two main reasons: functional (it doesn't work well anymore) or economic (external factors, like changes in... (Read more)
Offer: An "offer" is a proposal to make a deal with someone else. It's like saying, "I'll do this for you if you do that for me." The offer sets out the terms of the deal, like how much money is involved or when it will happen. If the other person... (Read more)
Offer and Acceptance: Offer and acceptance is the process that creates a contract between two parties. One person makes an offer, presenting specific terms, and the other person accepts those terms without any changes. The contract is created once the person who made... (Read more)
Office of the Comptroller of the Currency (OCC): Office of the Comptroller of the Currency (OCC): The OCC is a part of the U.S. government that makes sure banks follow the rules and are run responsibly. They keep an eye on banks, making sure they're safe and sound, and that people's money... (Read more)
Office of Thrift Supervision (OTS): Office of Thrift Supervision (OTS): The OTS was a part of the U.S. government responsible for making sure savings and loan associations, also known as thrifts, followed the rules and operated responsibly. Their job was to keep an eye on... (Read more)
Open Listing: An open listing is an agreement between a property owner and multiple real estate agents. The owner allows any of the agents to try to sell the property, but only the agent who finds a buyer gets paid. If the owner sells the property without... (Read more)
Operating Expense Ratio (OER): The operating expense ratio is a way to measure how much of the money a property makes goes toward paying for the costs of running the property. It's calculated by dividing the operating expenses by the total income the property generates. A... (Read more)
Operating Expenses: Operating expenses are the costs that a property owner has to pay to keep a building running, like paying for repairs, maintenance, and utilities. These expenses don't include mortgage payments or taxes but are essential for keeping the property... (Read more)
Opinion of Title: "Opinion of title" is a written document that tells you who legally owns a piece of property and if there are any problems with... (Read more)
Opinion of Value: An opinion of value is an estimate of how much a property is worth, based on factors like its location, condition, and recent sales of similar properties in the area. It's like trying to guess how much someone would be willing to pay for a house... (Read more)
Option: An option is a special agreement in which a property owner (the optionor) gives someone else (the optionee) the chance to buy or lease the property at a later time, but before a specific deadline. The optionee pays the owner some money to... (Read more)
Option Contract: An option contract is a special agreement where a person (the buyer) gets the choice, but not the requirement, to buy a property at a set price within a certain time frame. The person who holds this right usually pays a fee for it. This... (Read more)
Origination Fee: Origination fee is a fee charged by a lender for processing a new loan application. It is typically a percentage of the loan amount and covers the costs associated with evaluating, underwriting, and approving... (Read more)
Other Income: In the world of real estate, other income refers to money earned from sources that aren't rent payments. This can include things like fees from laundry facilities, vending machines, and parking spaces. These extra sources of income can help... (Read more)
Overage rent (aka Overage Income): Overage rent is a special kind of rent that some tenants pay based on how well their business is doing. When a store's sales go over a certain amount (called the breakpoint), the tenant pays extra rent as a percentage of their sales beyond... (Read more)
Overall Capitalization Rate (Ro): The overall capitalization rate, or Ro, is a number that helps investors figure out the relationship between a property's total price or value and the income it makes in a single year, called the net operating income. This rate helps... (Read more)

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