Common Charleston, SC Real Estate Terms Demystified

As a real estate investor in Charleston, SC, I hear a lot of jargon thrown around. Some of these terms are used correctly, but others are used incorrectly or overused. Here are 10 of the most overused real estate terms in Charleston, SC and what they really mean:

1. List price: This is the price that a property is listed for on the market. It is not always the same as the selling price.
2. Market value: This is the price that a property would likely sell for in a competitive market. It is based on factors such as the property's location, condition, and recent sales of similar properties.
3. ARV: This stands for after-repair value. It is the estimated value of a property after it has been repaired or renovated.
4. Cash flow: This is the amount of money that a property generates after all expenses have been paid.
5. Cap rate: This stands for capitalization rate. It is a measure of a property's profitability. It is calculated by dividing the net operating income by the property's purchase price.
6. Investment property: This is a property that is purchased with the intention of generating income.
7. Turnkey property: This is a property that is ready to be rented or sold without any major repairs or renovations.
8. Foreclosure: This is a property that has been repossessed by the lender because the borrower has defaulted on the mortgage.
9. Short sale: This is a sale of a property for less than the amount owed on the mortgage.
10. REO: This stands for real estate owned. It is a property that has been foreclosed on and is now owned by the lender.

These are just a few of the most overused real estate terms in Charleston, SC. If you are thinking about buying or selling a property, it is important to understand these terms so that you can make informed decisions.

I hope this helps!