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

British thermal unit-a unit of energy associated with the creation of heat. Prior to 1929, it was defined as the amount of heat required to raised the temperature of 1 pound of water 1 ...

Method of construction where vertical siding is attached to a horizontal framing structure. Often found in the design of agricultural buildings. ...

The definition of a property brief is a document including the summarization of the attributes and characteristics of the property. Officially issued legal records are supposed to include ...

Study of real estate activities including demand, price, location influence, and current trends. ...

A method of brick construction where the bricks are laid with their sides facing outward. ...

A developer is a person that designs or creates something that could be a concept, structure, product or service. An idea can be turned into something real, tangible and the person that ...

Act of postponing a closing for another day or place. Adjournments of closing can occur for a variety of reasons including the lack of an appropriate closing statement, one or more parties ...

Market analysis method where sales of similar properties in proximity neighborhoods are compared. The comparable sales methodology is extremely useful if the properties being compared are ...

Property deed in which the grantor limits the title warranty to the grantee. A grantor does not warrant a title defect to the property occurring from a happening before the time of his ...

Popular Real Estate Questions