Word Glossary

Communities: A neighborhood with new homes for sale and used homes for sale.

Farm land: This is land, usually larger acreage tracts, that is used primarily for farming, for corn, soy beans, cotton, wheat, and other crops, or for raising livestock.

Financing: The act of acquiring a mortgage for a new home or existing home, usually through a bank or mortgage broker.

Floor plans: Blue print drawings with very few details of the floor plan. Usually used to convey the layout of the home our house that can be built. These are typically handed out at a sales office in a new home community or new home neighborhood.

Gated communities: A new home community neighborhood that includes a gate for privacy. Some may have a staffed guard house with security personnel. These new home communities typically are in new home neighborhoods where new homes are being constructed and they are considered private gated communities.

Homes: A dwelling constructed usually by a home builder in a new neighborhood or new community.

Homes for sale: A new or used home or dwelling placed on the market for sale usually by a real estate agent for a broker or for sale by owner.

Home building: The process of constructing or building a new home on a tract of land or in a new home neighborhood or new home community or an existing home neighborhood.

House plans: Blue print drawings of a home or dwelling detailing the floor plan and dimensions of the house or home. House plans must be approved in most neighborhoods or communities prior to construction to maintain the feel or concept the developer initiated in the neighborhood or community.

Home site: A piece of property, vacant lot, or building lot.

Home refinancing: The act of replacing an existing mortgage with a new mortgage for a home usually through a bank or mortgage broker. Refinancing may be done to obtain a lower interest rate or house payment or pull cash out of a home with equity.

Land directory: A source which provides information on tracts of land, acreage estates, ranches or farm land. Land directories may be found in local newspapers or real estate books specific to individual cities or counties.

Master planned communities: A new home community designed with a small city in mind. These may include a grocery store, gas station, school, post office and general store intended for the residents of the new home community.

Neighborhood: A district or locality, often with reference to its character or inhabitants: these communities include new homes for sale and used homes for sale.

Neighborhood Amenities: Extras that add value to a neighborhood and encourage people to gather in community. These could include golf courses, swimming pools, walking trails, playground, club house, park area, community center, tennis courts, fitness facilities, basketball court, bike trails, boat docks, fishing, hunting, lawn maintenance, mountain views, riding trails, horse riding, sidewalks, skiing, soccer fields, street lights, and more.

Neighborhood communities: Usually a large track of land purchase by a developer for constructions of new homes. The developer manages all the site work and utilities for the new neighborhood according the county regulations. The developer will then sell lots to home builders who will build new homes on the home sites.

New homes: A dwelling constructed usually by a home builder in a new community or neighborhood, or on a track of land. These are dwellings that have not been lived in before.

New home amenities: New home amenities are extras such as whirlpool tubs, upgraded appliances or swimming pools. Frequently an interior decorator or architect will consult with a new home owner or the new home, home builder or Construction Company to determine the details of the new home amenities found in the new home.

New home directory: A source which provides information on new homes or existing homes. May be found in local newspapers or real estate books specific to individual cities or counties.

New home neighborhoods: Usually a large track of land purchased by a developer for constructions of new homes. The developer manages all the site work and utilities for the new neighborhood according to county regulations. The developer then sells lots to home builders to build new homes on the home sites.

Ocean Front Properties: These are properties located on the ocean; property owners have direct access to the beach from these properties.

Safe neighborhoods: Some neighborhoods have security cameras and are gated communities or gated neighborhoods. These neighborhoods provide a sense of security for home owners.

Private communities: A new home community or new home neighborhood that is gated. Some may have a staffed guard house with security personnel. These new home communities typically are in new home neighborhoods.

Real estate: Property in buildings and land.

Real estate broker: An agent who negotiates contracts of purchase and sale (as of real estate, commodities, or securities).

Retirement communities: Retirement homes have evolved to become retirement communities with small residential lots with small lawns and full lawn care services. Additional neighborhood amenities may include golf courses, swimming pools, walking trails, playground, club house, park area, community center, tennis courts, fitness facilities, and more.

River Front Properties: These are properties located on the river; property owners have direct access to the river from these properties.

Vacant lots: A piece of land that can be purchased for building a new home under the neighborhood restrictive covenants.

Waterfront communities: Usually a large track of land purchase by a developer for constructions of new homes. Several lots are located on a lake, pond, river or ocean. Not all lots would have views or access to the lake, pond, river or ocean. Some lots may only enjoy a view of the water.

Waterfront lots: Usually a building lot in a new home neighborhood or new home community that has direct access to a lake, pond, river or ocean.

Commercial Glossary of Terms

Access:  The ease or difficulty in getting from major traffic arteries to a convenient place to park for the site

Big Box:  A retailer whose building occupies a space of 25,000 square feet or larger

Brand Recognition:  Familiarity of a concept within a market

Competition:  Any other business a customer thinks of when making a decision to buy a product that you offer

Commuters:  Individuals who travel past your location each day on their way to and from work

Corner Full Access:  A site orientated at the corner of a street intersection with access from both intersecting streets

Corner Limited Access:  A site orientated at the corner of a street intersection with access from only one of the intersecting streets.

Critical Factors:  Site factors that have the potential to impact sales performance either positively or negatively

Daytime Activity:  The overall activity generated in the daytime within the within a ½-mile radius by such generators as employment, schools, retail shops, restaurants, professional and repair services, etc.

Development Strategy:  The type of development that a site is located in (i.e., shopping environment)

Drive-by Influence:  A measure of the likelihood that drive-by customers will make unplanned stops based on the site’s access, visibility, etc.

Edge Site:  A location that is situated at a distance from the heart (middle) of the trade area and is bounded by vacant land, water barriers, rail tracks, deteriorating neighborhoods, industrial/manufacturing zones, etc. or other non-supportive development on the other side of the boundary

Egress:  The ability to exit from the site

Employment Access:  The degree of ease or difficulty in driving from offices, factories, and other non-retail business employment sources to a site

Endcap (Exterior):  A shopping center site located at the corner of a linear arrangement of businesses.

Endcap (Interior):  A shopping center site with another tenant located on one side and a small, insignificant break on the other side, functioning more like an in-line site

Evening Activity:  The combined retail, dining, and entertainment activity within a ½-mile radius

Freestanding Pad:  A pad site in a shopping center with only one tenant that occupies the building

GLA:  An abbreviation for Gross Lease Area that is a square footage assessment of the amount of space in a building or shopping center that is available for lease

Highway Location:  A site located directly off a highway service road

Ingress: The ability to enter a site

In-line:  A site located in a shopping center with other tenants on both adjacent sides

Interstate:  Refers to any major highway/freeway with multiple lanes where the speed limit is 55 or greater

Linkages:  People tend to combine (link) their activities in a way that multiple stops occur in a single visit to a trade area to maximize the time and effort expended to accomplish various tasks. The presence of a business within ¼ mile of a site is considered a linkage.

Midblock:  A site orientated toward the middle of a block with access from only one street

Monument Sign:  A sign type defined by its placement at the entrance to a shopping center

Multi-tenant Pad:  A pad site of a shopping center with two or more tenants that share the same building

Off Corner:  A site orientated near the corner of a street intersection (one or two businesses removed from the corner) with access from only one of the intersecting streets

Office Activity:  Indicates the type and density of offices surrounding the site within a ½- mile radius

Office Growth:  A measure of the amount of observed growth or decline in office developments within a specific mile radius

Power Center (Discount):  A type of shopping center, larger in scale and dimension than a strip center, with multiple “big box” retailers (i.e., 25,000 square feet and larger), some of which are discount-focused, that draws traffic from further than the immediate trade area

Power Center (Specialty):  A type of shopping center, larger in scale and dimension than a strip center, with multiple “big box” retailers (i.e., 25,000 square feet and larger), some of which are higher-end shops that draws traffic from further than the immediate trade area

Primary Road:  The address street of the store

Pylon Sign:  A sign that is mounted on a pole, with sufficient dimensions to be visible from the road at greater distances than signs on the building

Residential Access:  The degree of ease or difficulty in driving from residential areas to a site

Residential Growth:  A measure of the amount of observed growth or decline in residential neighborhoods within a specific mile radius

Restaurant Activity:  The degree to which the ½-mile radius around a site is known for its restaurant activity

Retail Access:  The degree of ease or difficulty in driving from retail areas to a site

Retail Activity:  The degree to which the ½-mile radius around a site is known for its retail activity

Retail Growth:  A measure of the amount of observed growth or decline in retail developments within a specific mile radius

Road Grade:  The position of the site relative to the road level (e.g., above grade would be situated higher than the road surface, below grade would be lower, and at grade would be level with the road)

Secondary Road:  The nearest named intersecting (or perpendicular) road to the primary road (see primary road definition)

Signage Quality:  A measure of how a site’s signage compares with other retailer’s signs in the immediate trade area

Site Location:  A designation of whether a site is in-line, endcap, freestanding, etc.

Site Orientation:  A designation on how a site is oriented to the corner of the nearest intersecting streets

Small Town/Rural:  A type of trade area in a small town or rural setting

Strategic Position:  How well (or poorly) your site is situated at the trade area level and at the site level relative to all businesses

Street Location:  A site located directly off the street that is not part of a shopping center

Strip Center:  A shopping center that draws from nearby neighborhoods that may be named or unnamed and may or may not have an anchor

Suburban Neighborhood:  A suburban type of trade area with retailers that draw traffic from nearby residential neighborhoods

Suburban Office Park:  A suburban type of trade area with a dense office development corridor

Suburban Regional:  A suburban type of trade area with retailers that draw traffic from across the region as opposed to the nearby neighborhood

Trade Area:  The geographic core from which a store gets 70% - 80% of its customers

Traffic Flow:  A measure of traffic volume relative to the road size, reflective of conditions in that city or town

Visibility:  The degree to which your store’s building and signage are recognizable from the road

Wall Sign:  A sign type defined by its placement on the exterior building surface

Finance Glossary of Terms

Loan Commitment:  A written promise to make a loan for a specific amount on specific terms.

Loan-to-Value Ratio: The relationship between the amount of the mortgage and the appraisal value of the property,   expressed as a percentage of the appraised value.

Lock-in:  The fixing of an interest rate or points at a certain level, usually during the loan application process.  It is usually done for a certain period of time, such as 60 days, and may require a fee or premium in the form of a higher interest rate.

Margin:  The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Mortgage Insurance Premium (MIP):  The mortgage insurance required on FHA loans for the life of said loans;  MIP can either be paid in cash at closing or financed in its entirety in the loan.  The premium varies depending on the method of payment.

Negative Amortization:  Occurs when monthly payments fail to cover the interest costs.  The interest that isn’t covered is added to the unpaid principal balance,  which means that even after several payments the borrowers could owe more than the did at the beginning of the loan.  Negative amoritization can occur when an ARM has a payment cap that results in monthly payments that aren’t high enough to cover the interest.

Origination Fee:  a fee or charge for work involved in evaluating, preparing, and submitting a proposed mortgage loan.  The fee is limited to one percent for FHA and VA loans.

Payment Cap:  The maximum amount the payment can adjust in any given time frame.

PITI:  Principal, Interest, Taxes and Insurance.

Planned Unit Development (PUD):  A zoning designation for property development at the same or slightly greater overall density than a conventional development, sometimes with improvements clustered between open common areas.  Use may be residential, commercial or industrial.

Point:  An amount equal to one percent of the principal amount of the investment or note.  Lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.

Prepayment Penalty:  A fee charged to a borrower who pays a loan before it is due.  Not allowed for FHA or VA loans.

Private Mortgage Insurance (PMI):  Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.

Purchase Agreement:  A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions.  Also called a sale contract, earnest money contract, or agreement for sale.

Rate Gap:  The difference between where the rate is now and where it could adjust to on an ARM.  Also used to compare the difference between a current conventional rate and that of an ARM.

Realtor:  A real estate broker or associate active in a local real estate board affiliated with the National Association of Realtors.

Regulation Z:  The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.

Tenancy in Common:  A type of joint ownership of property by two or more persons with no right of survivorship.

Title Insurance Policy:  A policy that protects the purchaser, mortgagee or the other party against losses.

VA Loans:  A loan, made by a private lender, which is partially guaranteed by the Veterans Administration.