How GIS Assists in Real Estate?

Real estate is a business term that refers to producing, buying, and selling of a property.

The terms associated with real estate include property, mortgage, lease, PITI, and buy low and sell high.

A property can be in the form of building, land, air rights above the ground, and underground rights below the land. It can be a home or office for anyone. A home, for example, can be a single-family home, a condo, or a duplex.

A mortgage is a legal agreement between a bank and a debtor on selling a property. It involves interest rates.

A lease is a contract between an owner and a tenant for a specific time with a particular payment. For example, an owner with a mortgage on the property might want to rent the property for a price higher than the mortgage repayment amount. By doing this, the owner will make some profit. The profit is considered as equity or cash flow.

PITI refers to Principle, Interest, Taxes, and Insurance for a mortgage payment. The principle is the amount payable for a property. Interest is the amount added to charge to the property for the interest that goes to the bank. Tax is the government sale tax. Finally, insurance is to protect the property from any mishaps.

Buy low, sell high refers to buying a property at a low price and selling at a higher price, which includes profit and mortgage repayment. The seller must consider the margin before any transaction can take place.