20 helpful definitions
- AAppraisal
- An opinion of a property’s value prepared for a specific purpose, often by a licensed or certified appraiser.
- CChange order
- A written change to an agreed project scope, price, or schedule.
- CClosing costs
- Fees and expenses associated with completing a property sale or loan transaction.
- CComparative market analysis
- A comparison of similar local properties used to help discuss a potential listing price.
- CContingency budget
- Money set aside for costs that were not included or known in the original project estimate.
- CCost recovery
- The portion of a project’s cost assumed or estimated to be reflected in resale value. It is not a guaranteed return.
- CCurb appeal
- The overall first impression of a home as seen from outside.
- DDeductible
- The amount you are responsible for under an insurance claim before covered payments are determined under the policy.
- EEscrow
- An arrangement in which a third party holds funds for a specified purpose, such as closing or paying certain property expenses.
- GGFCI
- A ground-fault circuit interrupter: a device designed to interrupt power when it detects certain ground faults.
- HHELOC
- A home equity line of credit: revolving borrowing secured by a home, subject to a credit limit and agreement terms.
- HHome equity
- Estimated property value minus all outstanding debt secured by that property.
- LLien
- A legal claim against property, often used to secure payment of a debt.
- NNet metering
- A utility billing arrangement for electricity sent to the grid by a customer’s generating system. Eligibility and credit rules vary.
- PPermit
- Authorization from the relevant local authority for work that requires approval.
- PPrincipal
- The amount of a loan balance that remains to be repaid, excluding interest and other charges.
- RR-value
- A measure of a material’s resistance to heat flow. Appropriate insulation levels depend on the location and assembly.
- SScope of work
- A description of what a project includes, how it will be completed, and what is excluded.
- SService life
- The period equipment or a material remains useful; actual life depends on conditions, installation, and care.
- WWeatherstripping
- Material used around openings such as doors and windows to reduce unwanted air movement.