Buying a home comes with a lot of confusing words. Here's every term we show you, explained simply — like we're chatting at the kitchen table. No jargon, no pressure. This page is free.
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This is one simple number that tells you, at a glance, how good a home looks as a deal. Higher is better.
We color it so you don't have to think: green = looks like a good deal, amber = okay, look closer, red = probably not a great deal.
It means the home is being sold for less than what it's probably worth. That's the kind of home we hunt for.
Think of it like finding a $100 jacket on sale for $70 — same jacket, smaller price.
This is our best guess of what the home is really worth, based on what similar nearby homes are worth.
It's an estimate, not a promise — but it gives you a fair yardstick to compare the asking price against.
Some areas catch fire or flood more often. Insurance companies know this, so they charge a lot more to insure a home there — sometimes hundreds extra every month.
We flag it early so a 'cheap' home doesn't surprise you with a giant insurance bill later.
Most websites only show the loan payment. But owning a home costs more than that. We add it all up so you see the real number.
True monthly cost = mortgage + property tax + insurance + PMI (if any) + HOA (if any) + a little for upkeep.
PMI is an extra monthly fee you pay when your down payment is under 20%. It protects the lender, not you.
The good news: once you've paid down enough of the loan, PMI usually goes away.
Some homes — especially condos and homes in planned neighborhoods — charge a monthly fee for shared upkeep: things like lawns, pools, hallways, or trash.
Not every home has one. When a home does, we include it in the true monthly cost.
This is a yearly tax you pay on a home to your local government. It usually helps pay for schools, roads and services.
We spread it across the year so it shows up in your monthly cost, where you'll actually feel it.
This is the real cash you need up front to buy the home — before you move in.
It's mainly your down payment (your share of the price) plus closing costs (one-time fees for paperwork, the loan and so on).
You tell us your income, your savings and your monthly debts. We check whether a home fits YOUR money — and answer in plain colors.
Green = comfortably yes, amber = tight, be careful, red = a stretch right now. We also show how much you'd have left over each month.
This is simply how long the home has been for sale.
A home that's sat for a long time can mean the seller is more willing to negotiate — which can be your chance to ask for a better price.
A mortgage is the loan you use to buy a home. The mortgage rate is the interest you pay to borrow that money, shown as a percentage.
Even a small change in the rate can move your monthly payment by a lot — so it's worth watching.
If you rent a home out, cash flow is the money left in your pocket each month after every cost is paid — the loan, taxes, insurance, upkeep, empty months, and a manager if you use one.
Positive is good (the home pays you). Negative means you pay to own it every month.
Cap rate shows how hard the home works as a rental, before any loan. It's the yearly rent (minus running costs, but not the mortgage) divided by the price.
It lets you compare two rentals on equal footing, no matter how each one is paid for.
This is how much your actual cash earns in a year — your yearly cash flow divided by the cash you put in (down payment + closing costs).
Unlike cap rate, this one counts your loan, so it reflects what you really pocket on the money you spent.
A fast back-of-napkin check: a rental usually needs monthly rent of at least 1% of the price to have a shot at positive cash flow.
It's a yellow flag, not a hard no — pricier areas often miss it but can still be fine. Always check the real cash flow.
ARV is what a home will be worth once it's fixed up. You estimate it from recently sold, already-renovated homes nearby — not from asking prices.
It's the most important number in a flip: every other figure leans on it, so be conservative.
A safety rule for flippers: don't pay more than 70% of the after-repair value, minus your repair budget. That cushion is meant to cover surprises and still leave a profit.
Pay more than this and your margin gets thin — one nasty surprise can wipe out the profit.
Two costs beginners forget in a flip. Holding costs are what you pay to own it while you work — taxes, insurance, utilities, loan interest. Selling costs are the agent and closing fees when you sell.
Together they can eat thousands, so we always subtract them before showing a profit.
That's the whole glossary. When you see any of these inside Underlisted, you'll know exactly what it means. ← Back to the deals
Estimates only — a screening tool, not advice. Fair Housing: scoring never uses demographic or neighborhood-quality signals.