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The Y’s Of Real Estate

REAL ESTATE TERMS YOU MAY WANT TO KNOW WHEN BUYING OR SELLING A HOME IN THE ORLANDO AREA

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(Click A Letter Or Scroll Down To Find A Term Starting With That Letter)


Get to know the language of real estate to get better results when buying or selling a home in the Orlando area
 

Get To Know The “Y’s” Of Real Estate

+/- Click A Term To Read Its Definition – Expands Answer In This Same Window – Click Again To Collapse

+/- Yard

A.] The site for most homes is also referred to as the yard, either front, back or side(s). B.] A unit of measurement equal to three feet “3′”

+/- Yard of Concrete

One cubic yard, or a volume 3 feet wide by 3 feet long by 3 feet high. One yard of concrete will cover 80 square feet at the 3 1/2 inch depth required for a sidewalk or a garage floor.

+/- Yd

Expresses the word Yard. You may come across this on a proposal when you are doing a construction or landscaping project.

+/- Yield

The interest earned on an investment by an investor or by a bank on the money it has loaned which is also called a return or Return On Investment.

+/- Yield Capitalization

An income approach method, that would not be the only method, of estimating value used for commercial property in which the appraiser uses several years of income and the reversion from the sale that is discounted to present value. A method of converting future income from an investment into present value by discounting each year’s income using an appropriate discount rate or by using one overall rate that reflects the investment.

+/- Yield Rate

A rate of return on an investment expressed as a percentage which is arrived at by taking the annual net income from the property and dividing it by the cost or market value of the property.

IT ALSO IS: An income approach method that would not be the only method of estimating value used for commercial property in which the appraiser uses several years of income and the reversion from the sale that is discounted to present value.

+/- Yield Spread Premium – YSP

A yield spread premium (YSP) is the money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower up front costs, generally paid in Origination fees, Broker fees or Discount Points. Yield Spread Premium is also known as a Lender Rebate. It is the rate at which a mortgage broker is compensated for the difference between the interest rate on a par loan and the interest rate on an a.

The YSP is derived through the realization of a market ‘price’ for a loan that is above 100%. For example, a $300,000 loan with a price when sold of 101.00% would ‘yield’ a 1% rebate to the originator. It is important to understand that the term ‘originator’ refers to either a retail bank or mortgage broker. The characteristics of a loan contribute to the price offered, such as the interest rate attached, the credit score of the borrower, purchase money versus a cash-out refinance, or a streamline refinance (which lowers the price because it is typically not accompanied by a property appraisal). Higher credit scores may add 0.25% to the price, while a lower one may cost up to 3.00% – which requires the borrower to either pay a discount fee to cover the loss to the lender when the mortgage is sold, or increasing the interest rate to absorb the risk for the mortgage security investor.

+/- Yield To Maturity

The Yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the internal rate of return (IRR, overall interest rate) earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity, and that all coupon and principal payments will be made on schedule. Yield to maturity is simply the discount rate at which the sum of all future cash flows from the bond (coupons and principal) is equal to the price of the bond. The YTM is often given in terms of Annual Percentage Rate (A.P.R.), but more usually market convention is followed: in a number of major markets the convention is to quote yields semi-annually (see compound interest: thus, for example, an annual effective yield of 10.25% would be quoted as 5.00%, because 1.05 x 1.05 = 1.1025).

The yield is usually quoted without making any allowance for tax paid by the investor on the return, and is then known as “gross redemption yield”. It also does not make any allowance for the dealing costs incurred by the purchaser (or seller).

This is pertinent in real estate for when someone invests in notes that are secured by property, or bonds that finance real estate projects.

+/- Yoke

The location where a home’s water meter is sometimes installed between two copper pipes, and located in the water meter pit in the yard..

+/- Youthbuild

YouthBuild is a non-profit organization which provides education, counseling and job skills to unemployed young American adults (between ages 16 and 24), generally high school dropouts. There are 273 YouthBuild programs in the United States, with a total capacity of about 10,000 students yearly, and there are similar programs underway in over 15 countries. The headquarters are in Somerville, Massachusetts. See More Here: Youthbuild.org

Keep in mind that this is by no means a complete list of terms, but it does highlight most of the more common terms used in the industry and is a constant work in progress as time passes.

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If you have any questions whatsoever regarding the sale or purchase of a property in the Central Florida area please feel free to call or write me direct. My business hours are Monday thru Friday 9am – 6pm.

Thank you for choosing MORE Realty Services LLC as an information source for your Central Florida real estate needs.

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