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MLS stands for Multiple Listing Service — a shared database used by real estate agents to list and find properties for sale. When a property is listed on the MLS, it becomes visible to all participating agents and their buyers, maximizing exposure.
The list price is what the seller asks for the property. The sale price is what the buyer actually pays after negotiation. In competitive markets, sale prices often exceed list prices; in slower markets, they tend to come in below asking.
Median home price is the midpoint of all home sale prices in an area — half sold for more, half for less. It's a more reliable indicator of typical market value than the average price, which can be skewed by a few very high or very low sales.
A real estate agent is licensed to help buyers and sellers in transactions. A broker has completed additional training and licensing, allowing them to operate independently or manage a real estate office. Agents typically work under a broker's supervision.
A buyer's market occurs when supply exceeds demand — more homes are available than there are buyers, giving purchasers more negotiating power. A seller's market is the opposite: limited inventory and high demand mean sellers can command higher prices and receive multiple offers.
Capitalization rate (cap rate) measures an investment property's expected return. It is calculated as Net Operating Income divided by the property's current market value. A higher cap rate generally indicates higher potential return but also higher risk.
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