Net Present Value (NPV)

Definition of "Net Present Value (NPV)"

The Smith Realtors real estate agent

Written by

The Smith Realtorselite badge icon

Keller Williams Realty Summit Short Hills

The difference between the present value of cash inflows generated by real estate and the amount of the initial investment. The present value of future cash flows is computed using the cost of capital (minimum desired rate of return, or hurdle rate) as the discount rate.

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

English-style home. It is usually 2-stories high. The roof is of a hip type. The chimney is on the side of the home. ...

A testator/testatrix who donates real property. ...

If you’re looking for the real estate agent definition, you’re in the right place. So, in the following paragraphs, we will try to examine the complex job of a real estate ...

Also called earnest money. Money deposited with an individual for security for the performance of some contract. This is intended to show his/her willingness to follow through with the ...

Document that must accompany a new issue of securities for a real estate company or partnership. It includes the same information in the registration statement, such as a list of directors ...

To depreciate is to lose value for something. Depreciation is the act of losing worth.Connecting with real estate, Property depreciation can be both an accounting method typically used to ...

A person has the option of canceling a contract previously agreed to. ...

A delay in making a principal payment on a mortgage that a bank allows a debtor for current financial difficulties. The extension of a loan at maturity at the 'going' market interest ...

Initial offer to buy or sell answered with a revised offer. For example, a buyer offers $500,000 for a home put on the market. The owner rejects the offer but submits a counteroffer for ...

Popular Real Estate Questions