Definition of "Implicit cost"

Team  Platinum of Naples  GRI, ABR real estate agent

Written by

Team Platinum of Naples GRI, ABRelite badge icon

Berkshire Hathaway HomeServices Florida Realty

Also called opportunity cost. The return foregone from an alternative employment of time or facilities. For example, if a building is rented out to a charity for a bingo night for $1,000 but it could have been rented out to a company for $10,000, the return foregone is $9,000.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Any permanent development that has been made to a parcel of land. Improved land features include whether the land has fruit bearing trees or crops producer by labor, landscaping, or ...

Failure, without sufficient reason, for one or both parties to perform the terms of a real estate contract. Breach requires unequivocal, decisive, and absolute refusal to carry out the ...

Individual who will receive an inheritance upon the death of another. The proceeds of an insurance policy may be in a lump sum annuity. Real estate also passes to the beneficiary. ...

Balcony or low ceiling overhang just above the main floor and between the next story. In a theater, a mezzanine is the first balcony above the stage. ...

Fee payable because of late payment. For example, a mortgagor is assessed a $30 late charge by the bank for not paying the mortgage payment when due. ...

A noncurrent loan in which the principal, interest, or maturity is related to a particular index. Therefore, period adjustments are necessary to conform to the change in the applicable ...

Payments made to enhance the appearance and conditions of real estate property. In so doing, the market value of the property should increase. Examples of renovation costs are siding, ...

The right of a landowner to have lateral land support from adjacent properties. The right of lateral and subjacent support means that an adjacent land owner may not, for example, lower or ...

Interest rate on an adjustable rate mortgage based on the total of the current value of an index and margin applicable to the mortgage. The rate is the basis for the computation of monthly ...

Popular Real Estate Questions