Glossary

The words on
every result row.

Nine terms, defined plainly, each with the part people usually leave out: what the number cannot tell you.

Percent undervalued

How far below its estimated value a home is listed.

The gap between a home's asking price and its estimated value, expressed as a percentage of that estimate. A home estimated at $500,000 and listed at $450,000 is 10% undervalued. Property Deal Finder ranks results by this figure. It measures disagreement between the asking price and a model, not guaranteed profit, and a large gap frequently reflects something unusual about the property rather than a mispricing.

Capitalization rate (cap rate)

Annual net return a property produces relative to its price.

A property's annual net operating income divided by its price, expressed as a percentage. A home bought for $400,000 producing $32,000 a year after operating expenses has an 8% cap rate. It lets you compare income potential across properties of different prices. The cap rate shown in Property Deal Finder is an estimate derived from an automated rent estimate against the asking price, before financing, taxes, vacancy and maintenance, so treat it as a screening figure rather than an underwriting number.

Price per square foot

Asking price divided by living area.

The asking price divided by the home's reported living area in square feet. It is the fastest way to compare homes of different sizes within one market, and the fastest way to spot a listing that is out of step with its neighbours. It is only meaningful within a single local market: $300 per square foot is expensive in one ZIP code and a bargain in the next one over.

Comparable sales (comps)

Similar nearby properties used to price a home.

Recently sold or actively listed properties similar to the one being valued in location, size, age and condition. Comps are the foundation of nearly every valuation method, automated or human: you price a house by what similar houses nearby are worth. The quality of a valuation is mostly the quality of its comps, which is why a home unlike anything around it is the hardest kind to value.

Automated valuation model (AVM)

A software estimate of a property's value.

A statistical model that estimates a property's value from public records, listing attributes and recent nearby sales, without anyone visiting the property. AVMs are fast and consistent across thousands of homes, which makes them ideal for screening a market. They are also blind to condition, renovation, layout and view, which is why an AVM result is a reason to look closer rather than a conclusion.

After-repair value (ARV)

What a property would be worth once renovated.

The estimated market value of a property after planned repairs and improvements are complete. Investors use it to decide whether a renovation budget is justified: purchase price plus renovation cost plus carrying costs must sit meaningfully below ARV for the project to work. ARV is not shown in Property Deal Finder, which values homes in their current reported condition.

Rent estimate

Projected monthly rent for a property.

An automated projection of the monthly rent a property would achieve if leased, based on rents for comparable nearby homes. It is the numerator behind the cap rate estimate. Like any automated figure it does not account for condition, furnishing, local rental regulation or seasonality, and it should be checked against actual listings in the same area before being relied on.

Days on market (DOM)

How long a listing has been for sale.

The number of days a property has been actively listed. High DOM in a fast market is a signal worth investigating: it can mean an overpriced listing, a problem with the property, or a motivated seller. Low DOM on an underpriced listing usually means competition.

Below market value (BMV)

Listed for less than comparable homes suggest it is worth.

A property offered at a price beneath what comparable sales indicate it should command. Genuine below-market listings arise from motivated sellers, estate sales, relocation deadlines, or simple mispricing by an agent unfamiliar with the area. Apparent below-market listings far more often arise from condition problems that comparable sales do not capture.