Harare Real Estate Agents Glossary – F

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Fair value of an asset (or liability)

The amount at which the asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. (Real Estate Information Standards)©2001 CCIM Institute. All rights reserved. Version 10/01./ ©2002 National Association of REALTORS®. All Rights Reserved.

Feasibility analysis

The process of evaluating a proposed project to determine if that project will satisfy the objectives set forth by the agents involved (including owners, investors, developers, and lessees).

Financial leverage

The use of borrowed funds to acquire an investment.

Financial risk

The possible change in an investment’s ability to return principal and income.

Financing Costs

The cost of interest and other charges involved in borrowing money to build or purchase real estate.

Fixed expenses

Costs that do not change with a building’s occupancy rate. They include property taxes, insurance, and some forms of building maintenance.

Forecast

An estimate or prediction of a future condition or outcome.

Forecast period

An upcoming time period of interest in which a forecast is to be made.

Foreclosure

A legal procedure through which a borrower in default is deprived of his/her interest in mortgaged property. There is foreclosure by sale and strictforeclosure. In foreclosure by sale, the mortgaged property is sold to satisfythe loan and title to the property passes to the lender or to a third party thatpurchases the property at foreclosure sale. Strict foreclosure is a judicial process through the courts.

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