Glossary
Real estate & AI, defined.
Plain-English definitions of the terms behind every deal and every output, from comps and cap rate to protected class, steering, and the responsible review of AI-generated real estate drafts.
- ADR
- Average Daily Rate. The average rental revenue earned per occupied night, used to gauge the pricing performance of a short-term rental.
- ARV
- After Repair Value. The estimated market value of a property once renovations are complete, used to size offers, budgets, and lending on fix-and-flip and value-add deals.
- Cap rate
- Capitalization rate. A property's net operating income divided by its value or price, expressed as a percent, used to compare the unleveraged yield of income properties.
- Cash-on-cash return
- Annual pre-tax cash flow divided by the actual cash invested. It measures the return on the money you put in, accounting for financing.
- CMA
- Comparative Market Analysis. An estimate of a property's likely sale price based on recent comparable sales, active listings, and local market trends, used to price listings and offers.
- Comparable sales (comps)
- Recently sold properties similar to a subject property in location, size, and condition. Comps are the foundation of a CMA and most valuation work.
- Days on market
- The number of days a listing is active before it goes under contract. It signals demand, pricing accuracy, and momentum in a given market.
- Fair Housing Act
- The federal law prohibiting discrimination in the sale, rental, advertising, and financing of housing based on protected characteristics. It governs how listings and marketing may describe a property.
- Fair Housing-aware AI workflow
- An AI workflow that includes instructions intended to reduce common Fair Housing risks. It is not a compliance determination; a licensed professional must review the final wording against federal, state, local, MLS, and brokerage requirements.
- GCI
- Gross Commission Income. The total commission an agent or brokerage earns before splits and expenses, a common top-line measure of production.
- HUD advertising guidelines
- Guidance from the U.S. Department of Housing and Urban Development on how housing may be advertised without violating the Fair Housing Act, including words and images to avoid.
- IDX
- Internet Data Exchange. The rules and feeds that let brokerages display other members' MLS listings on their own websites, subject to MLS and broker agreements.
- IRR
- Internal Rate of Return. The annualized rate that makes the present value of an investment's cash flows equal to zero, used to compare deals with different timing and hold periods.
- Listing description
- The written marketing copy for a property listing. Descriptions should focus on accurate property features and avoid language that expresses a prohibited preference.
- LLM
- Large Language Model. The kind of AI that generates and understands natural language. RealtrAI uses LLMs to create drafts from user inputs; those drafts can be wrong and require review.
- MLS
- Multiple Listing Service. A regional database where member brokers share listings and cooperate on commissions. It is the primary source of comps and active inventory.
- NAR Code of Ethics
- The professional standards adopted by the National Association of Realtors, covering duties to clients, the public, and other Realtors, including honesty in advertising.
- NNN (triple-net) lease
- A commercial lease where the tenant pays property taxes, insurance, and maintenance on top of rent. It shifts most operating costs and risk to the tenant.
- Occupancy rate
- The share of available nights or units that are rented over a period. For short-term rentals it pairs with ADR to measure revenue performance.
- Protected class
- A characteristic the Fair Housing Act shields from discrimination: race, color, national origin, religion, sex, familial status, and disability. Marketing may not reference or imply preference based on these.
- Reg D
- A set of SEC exemptions that let real estate syndicators raise private capital without a full public registration, subject to investor and disclosure rules.
- Steering
- Guiding buyers or renters toward or away from neighborhoods based on a protected class. It is illegal under the Fair Housing Act and a key risk in listing and outreach copy.
- STR
- Short-Term Rental. A property rented for short stays, often through platforms like Airbnb or Vrbo, analyzed on ADR, occupancy, and seasonality rather than a fixed monthly rent.
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