Affordable market value is the price charged for an apartment building sold through the FDIC’s Affordable Housing Program.

FDIC Affordable Housing Program - Property Owner's Manual, Chapter 1: Introduction

Affordable market value is the sale price of a multifamily residential housing unit sold through the Federal Deposit Insurance Corporation's (FDIC) Affordable Housing Program (AHP). In other words, the affordable market value of a property is lower than the appraised value of the property, since it takes into account that lower rents will be charged for some of the units, as well as the physical condition of the property, expected operating expenses, and financing options. The purchase prices of AHP properties are below fair market value, and in return, owners must make a specific number of units available to low-income households through affordable rents. Affordable market value (AMV) is a valuation model used to determine the sales price of multifamily residential property sold in the FDIC's affordable housing program. In exchange for purchasing a property at a price below the fair market value, purchasers agree to make units available to low- and very low-income households at affordable rents.

Affordable Market Value (AMV)

A bidding war is a situation in which potential buyers of a property vie for ownership via a series of increasing price bids. 

A bidding war refers to a circumstance in which two or more prospective buyers of a property compete for ownership through incrementally increasing bids. A bidding war occurs when potential buyers of a property compete for ownership through a series of increasing price bids, sometimes pushing the final price up past the original value of the property. Similar to an auction, a bidding war often occurs at a rapid pace, meaning that during a bidding war potential buyers are vulnerable to making rash or emotional investment decisions. Typically, a seller of a property will be aware of the maximum price set in an escalation clause, meaning that the seller can be aware of how much the potential buyer is willing to pay. An escalation clause is essentially a statement that indicates a base bid price for the property and an agreement to automatically increase that bid by a certain amount if another buyer submits a verified higher bid.

Bidding War

The estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered.

A broker price opinion (BPO) is the estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion (BPO) is the estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion (BPO) is an unofficial assessment of a property's potential market value based on expert judgment. The broker might include a marketing plan for the property when they issue a price opinion to show how they would approach representing the property. A broker price opinion can be requested by a lender who wants an assessment of a property for such needs as the refinancing of a mortgage or a foreclosure.

Broker Price Opinion (BPO)

A clear title is a title without any kind of impairment, lien, or levy from other parties that poses no question as to legal ownership.

A clear title is a title without any type of lien or levy from creditors or other parties that would pose a question as to legal ownership. A clear title is also called a “clean title,” a “just title,” and a “free and clear title.”
A clear title is necessary for any real estate transaction because it firmly establishes who is the property owner. The presence of liens can create a cloud on title, meaning that a claim or an unreleased lien invalidates or impairs the owner’s title to the property.
Title issues can arise in situations of separation, divorce, or heirs not being properly documented. The presence of liens can create a cloud on title, which is when a claim or an unreleased lien invalidates or impairs the owner’s title to the property. A clear title helps to show whether there are any outstanding financial responsibilities attached to the property and is necessary to demonstrate that an owner has the right to sell the property.

Clear Title

A conditional offer is an agreement between a buyer and a seller that an offer will be made if a certain condition is met.

A conditional offer is an agreement between two parties that an offer will be made if a specific condition is met. A conditional offer could occur when a buyer agrees to purchase a property with the condition that the home passes a home inspection. If another buyer makes an offer, the contract or any proposal needs to be structured so that the sale only goes through if the first conditional offer does not materialize. A conditional offer could be in a place where the sale of the home is contingent on the buyer getting bank approval for a mortgage. Real estate agents might also suggest that the seller insert an escape clause into the conditional offer in case a better offer comes along.

Conditional Offer

A contingency clause is a contract provision that requires a specific event or action to take place in order for the contract to be considered valid.

A contingency clause is a contract provision that requires a specific event or action to take place in order for the contract to be considered valid. Contingency clauses in real estate might require the buyer to obtain financing, the home to pass inspection, or an appraisal be done.
Contingency clauses are often used in real estate transactions whereby an offer to buy a home might be contingent on something being satisfied. A contingency clause is a contract provision that requires a specific event or action to take place in order for the contract to be considered valid. A contingency clause is a contract provision requiring a specific event or action to occur in order for the contract to be considered valid. A contingency clause can be considered a type of escape clause for those involved in the contract.

Contingency Clause

A first-time homebuyer is someone who is buying their first home.

Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)

For instance, first-time homebuyers with low- to moderate-income levels may qualify for grants or loans that don't require repayment as long as the borrower remains in the home for a certain period of time. Many first-time homebuyers qualify for financial help when making a first-time home purchase through various government-sponsored programs. The term first-time homebuyer generally refers to an individual who purchases a principal residence for the very first time. First-time homebuyers often qualify for special benefits such as low down payments, special grants, and assistance with paying closing costs that are sponsored by state and federal governments.

First-Time Homebuyer

Fixing-up expenses are expenditures incurred during the process of repairing one's home for sale or rental.

Fixing-up expenses are any repair-related expenditures an individual has incurred during the process of preparing their home for sale, such as replacing broken windows or painting. Repairs that are necessary to keep a home in good condition get classified as fixing-up expenses unless they add value to the property.
The Taxpayer Relief Act of 1997 allows single homeowners to exclude the first $250,000 ($500,000 if married) of the capital gain from the sale of their homes. With this act, capital improvements are allowed to increase the cost basis of a home, which can lower the capital gains tax for homeowners. Fixing-up expenses are considered run-of-the-mill home repairs done in the process of getting a home ready for sale. Examples of capital improvements include:
Adding a bedroom, bathroom, or deck
Adding new built-in appliances, wall-to-wall carpeting, or flooring
Improvements to a home's exterior, such as replacing the roof, siding, or storm windows

Fixing-Up Expenses

The Home Affordable Refinance Program (HARP) is a mortgage refinancing program offered to borrowers who are currently underwater on their mortgages.

The Home Affordable Refinance Program (HARP) was a program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the oan. The Home Affordable Refinance Program (HARP) was a program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the loan. The Home Affordable Refinance Program (HARP) was a program offered by the Federal Housing Finance Agency to homeowners who own homes that are worth less than the outstanding balance on the oan. The Home Affordable Refinance Program (HARP) refinance was only available for mortgages that were guaranteed by either Freddie Mac or Fannie Mae—the program was created in coordination with these entities. HARP was created to help underwater and near-underwater homeowners refinance their mortgages due to falling home prices.

Home Affordable Refinance Program (HARP)

A home inspection is an examination of the condition and safety of a real estate property.

A home inspection observes and reports on the condition of a real estate property, usually when it is on the market to be sold. The appraiser uses several valuation methods, including comparable home prices, the size and quality of the home, lot size, and more, whereas a home inspector is only evaluating the condition of the home. A home inspection focuses on the home's current condition and should not be confused with a home appraisal, which determines the value of the property. A home inspection is not the same as a home appraisal, which is required and scheduled by a lender to determine the value of a property for which a buyer is seeking a mortgage. The home inspector will assess the physical structure of the home, from the foundation to the roof, as well as the home's systems.

Home Inspection

The Housing Choice Voucher Program helps families with very low incomes choose their own affordable, safe and healthy housing.

The Housing Choice Voucher Program assists low-income families, or those with disabilities, in finding safe and affordable housing in the private market. Although they may experience overlap with families who qualify for the housing voucher program, public housing is specifically directed at people who would not otherwise qualify for housing in the private sector. Public housing is commonly also referred to as housing projects, which are government-funded housing facilities that cater to low-income families and the elderly. The Housing Choice Voucher Program, also known as Section 8 housing, helps low-income or disabled families obtain affordable private housing. The Housing Choice Voucher Program assists low-income families, or those with disabilities, in finding safe and affordable housing in the private market.

Housing Choice Voucher Program

Open houses are periods of time in which houses or other dwellings are available to be viewed by potential buyers.

2021 Home Buyers and Sellers Generational Trends Report

In the Pandemic, Online Home Buying Picks Up Speed

Table of Contents
What Is an Open House? Pros and Cons of Open Houses
Broker's Open House
Open House FAQs
The Bottom Line
In real estate, an open house is a scheduled time when a house or other dwelling is designated to be available for viewing by potential buyers. In contrast to a traditional open house, which is open to the public, a broker's open house is strictly for real estate professionals. In addition, seniors ages 75 to 95 years accounted for 6% of open house visits, and younger people (22 to 30 years) accounted for 2% of open house visits. Some realtors may serve light refreshments at an open house or even cocktails during an evening open house.

Open House

An open listing is a property listing that uses multiple real estate agents in a nonexclusive arrangement to find potential buyers.

In real estate, an open listing has two meanings. This status may attract thrift-minded buyers, who figure that the asking price for the property will be lower, since the seller doesn't have to build commissions into it (Typically, a real estate agent's commission is based on the property's final purchase price; the agent's cut comes directly out of the buyer's payment during the closing, before the seller gets any money). In either case, the open listing is the opposite of an exclusive listing, in which a real estate agent is engaged by the property owner, and is the only conduit to bidding on and buying the property. In real estate, an open listing has two meanings; though different, both go contrary to the usual practice of giving one real estate agent the exclusive right to show and sell a property. An open listing can also refer to an owner who is selling their home or property independently, without engaging (and thus, having to pay a commission to) a real estate agent.

Open Listing

Opinion of title is a legal opinion attesting to the validity of the title deed to a piece of property. 

The opinion of title is the legal opinion which attests to the validity of the title deed to a parcel of property. The title company providing the title report will charge various fees to provide the legal document, including a request for title insurance. This is an additional piece of insurance that further verifies that the attorney who reviewed the title policy, and issued the opinion of title, stands by the information provided and assumes responsibility for any legal recourse that could arise due to erroneous reporting. The opinion of title is the legal opinion which attests to the validity of the title deed to a parcel of property. The title insurance premium is collected to ensure against any issues that should arise and to cover any additional costs or losses that the attorney and title company may incur.

Opinion of Title

A restrictive covenant is an agreement that requires the buyer to either perform or abstain from a specific action.

Tax Treatment of Income Received for Cancellation of a Restrictive Covenant in a Lease

You Can’t Live Here: The Enduring Impacts of Restrictive Covenants

A restrictive covenant, also known as a negative covenant, is any type of agreement in a contract or obligation that restricts the buyer from taking some action or requires they abstain from a specific action. Generally, the more negative covenants exist in a bond issue, the lower the interest rate on the debt will be since the restrictive covenants make the bonds safer in the eyes of investors. For example, a property in a certain area or neighborhood may be under restrictive covenants to adhere to a specific type of roofing code and exterior color to maintain aesthetic consistency in the neighborhood. In real estate transactions, restrictive covenants are binding legal obligations written into the deed of a property contract, usually by the seller. A restrictive covenant, also known as a negative covenant, is any type of agreement in a contract or obligation that restricts the buyer from taking some action or requires they abstain from a specific action.

Restrictive Covenant

A title search is research of public records to determine a property's legal ownership and find out what claims are on the property.

A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims or liens are on the property. When performing a title search, the attorney or title company will conduct research using public records and legal documents to identify the vested owner, the liens or other judgments on the property, the loans on the property, and the property taxes due.
While it is possible for a prospective buyer or another individual to conduct a title search on their own, it is not generally recommended. A basic owner's basic title insurance policy typically covers the following hazards:
Ownership by another party
Incorrect signatures on documents, as well as forgery and fraud concerning title documents
Defective recordation (flawed records or record-keeping)
Restrictive covenants (terms that reduce value or enjoyment), such as unrecorded easements
Encumbrances or judgments against property, such as outstanding lawsuits or liens A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims or liens are on the property. In lieu of title insurance, some private transactions can involve a warranty of title, which is a guarantee by a seller to a buyer that the seller has the right to transfer ownership and no one else has rights to the property.

Title Search

A transfer of physical assets (TPA) is involved when a HUD-insured loan is attached to a real estate transaction.

Transfer of Physical Assets (TPA) -- Change in Property Ownership

Application for Transfer of Physical Assets (TPA)

A transfer of physical assets (TPA) is a type of property sale that requires the assumption of a loan sponsored by the United States Department of Housing and Urban Development (HUD), which oversees subsidized and public housing in the U.S.
TPAs pertain only to HUD-insured residential loans and are not applicable to any commercial loans. A transfer of physical assets (TPA) is a type of property sale that requires the assumption of a loan sponsored by the United States Department of Housing and Urban Development (HUD), which oversees subsidized and public housing in the U.S.
TPAs pertain only to HUD-insured residential loans and are not applicable to any commercial loans. In the preliminary approval phase, HUD reviews the application as well as 22 separate documents, which are outlined in it and include the purchaser’s financial statements, a purchaser’s letter that describes the transaction, the borrower’s proposed organizational documents, and any previous participation certificates. A transfer of physical assets (TPA) is a transfer of real estate property that also involves the assumption of a HUD-insured mortgage. The purchaser then may either assume the existing regulatory agreement, the central contract with HUD, or enter into a new regulatory agreement with HUD.

Purchasing A Home

More in Personal Finance

Terms in Purchasing A Home