How Is FMV Calculated? Several factors influence the Fair Market Value of a property. Comparable sales or “comps” play a significant role in determining FMV. Real estate professionals analyze recently sold homes in your area that are similar to yours, providing a benchmark for pricing your pro...
As with real estate, financing in stocks allows you touse margin as leverageto increase the overall amount of shares that you own. The downside is that, if the stock position falls, you could have what is known as a margin call. This is where the equity, in relation to the amount borr...
Building an investment portfolio may require personalization and finesse, but it can also be ultra-simple.
Central to REITs is that they take the quintessential example of illiquid assets—real estate—and make them liquid. REITs invest in all kinds of properties: apartment complexes, data centers, healthcare facilities, hotels, infrastructure (fiber cables, cell towers, and energy pipelines), office bu...
Understanding what you can afford in the area you want to buy will help keep you grounded and focused on what you need in a house versus what might be nice to have. 4. Save for a down payment While a 20% down payment has long been the traditional benchmark, many homebuyers today opt...
An exclusive right to sell agreement gives one real estate agent and their brokerage the sole right to market and sell a property. That agent is guaranteed a commission on the sale as long as it occurs during the duration of the contract, even if they did not bring in the buyer. It...
Buyers can also use the knowledge they’ve gained from the comps to negotiate for a lower price or seller concessions. Home Sellers Comps are important because they help sellers set a realistic benchmark of what their home is worth. Analyzing comparable sales gives sellers a more objective way...
Thomson Reuters fund research firm Lipper tracks over 13,000 dedicated emerging bond and equity funds, up from about 2,000 back in 2003. And just in emerging debt, the most widely used GBI-EM index is used as a benchmark by funds managing over $200 billion in assets, up ten-f...
In accounting, real estate is a term used to describe land, buildings, and other property holdings that are owned by individuals, businesses, or investment entities. It is considered a significant asset class due to its tangible nature, value, and impact on financial statements. ...
The simplest way to calculate alpha is to subtract the total return of an investment from a benchmark in the same investment category. For example, let’s assume that throughout 2019, you held an investment in an all-equity portfolio that provided a return of 30 percent. During the same ...