After Repair Value:
Which usually is determined by a trained, licensed independent appraiser after looking at the property, fix up plans and reviewing local comps (of similar properties) then calculates a value and justified by a couple of different methods

Appraisal:
A document from a professional that gives an estimate of a property's fair market value based on the sales of comparable homes in the area and the features of a property; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

Appraised value:
An opinion of a property's fair market value, based on an appraiser's knowledge, experience, and analysis of the property. Since an appraisal is based primarily on comparable sales, and the most recent sale is the one on the property in question, the appraisal usually comes out at the purchase price.

Cap:
Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as "caps." Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.

Capitalization Rate:
In real estate, the yield of a property computed by dividing the net operating income by the property value and commonly expressed as percent. For those more familiar with financial equities, the Capitalization Rate may be thought of as a measure of yield, analogous to the inverse of "earnings per share" as applied to a share of stock.

Cap Rate:
Commonly used as the colloquial equivalent of Capitalization Rate.
Cap Rate, Going-In:
1) In a multi-year cash flow analysis, the cap rate applied in the first year as a function of first year Net operating Income and acquisition cost;
2) The cap rate at which a property is acquired.

Cap Rate, Stabilized:
The cap rate obtained by dividing the NOI of a property, in a representative year with no unusual impairment of income or atypical expense, by the undiscounted value of the property in that year.

Cap Rate, Terminal:
In a multi-year cash flow analysis, the cap rate applied in the final year of the analysis to estimate the value of the property at disposition. Typically, the terminal cap rate is applied to the NOI for the year following the terminal year. This is analogous to a purchaser of a property basing value prospectively on the NOI in the first year of ownership.

Gross Income:
Money earned before taxes and other deductions. Sometimes it may include income from self-employment, rental property, alimony, child support, public assistance payments, and retirement benefits.

Home Inspection:
An examination of the structure and mechanical systems to determine a home's quality, soundness and safety; makes the potential homebuyer aware of any repairs that may be needed. The homebuyer generally pays inspection fees.

Home Owner's Association:
An association of people who own homes in a given area for the purpose of improving or maintaining the quality of the area.

Net Operating Income (NOI):
Effective gross income less all operating expenses, but before debt service and capital expenditures.

Real Estate Investment Trust (REIT):
A real estate mutual fund, allowed by income tax laws to avoid the corporate income tax. It sells shares of ownership and must invest in real estate or mortgages . It must meet certain other requirements, including minimum number of shareholders, widely dispersed ownership, asset and income tests. If it distributes 95% of its income to shareholders, it is not taxed on that income, but shareholders must include their share of the REIT's income in their personal tax returns.

Real estate investing:
It involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.