The process of converting into present value (or obtaining the present worth of) a series of anticipated future periodic installments of net income. In real estate appraisal, it usually takes the form of discounting. The formula is Income/Rate = Value
The initial capital and the long-term expenditures made to establish and maintain a business or investment property.
Profit earned from the sale of an asset.
The legal ability of persons to enter into a valid contract. Most persons have full capacity to contract and are said to be competent parties.
The practice of making telephone calls or visiting from door to door to seek prospective buyers or sellers; in the real estate business, generally associated with acquired listings in a given area.