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Welcome to the Vision Realty Real Estate Glossary. This resource provides authoritative definitions for buyers, sellers, and investors, focused on the unique terms and legalities of the Fargo-Moorhead (ND/MN) market. Use the index below to quickly navigate to key concepts.
Quick Index:
📈 Market Metrics & Property Value
Understand the local performance indicators that drive value in Fargo-Moorhead real estate.
- Median Home Price
- The midpoint price where half of the homes sold for more and half sold for less. It is a stable indicator of market health.
Local Context: Crucial for affordability trends in Fargo vs. Moorhead. View Latest Snapshot. - Average Days on Market (DOM)
- The average time a property stays listed before selling. A low DOM suggests a fast seller's market.
- Comps (Comparables)
- Recently sold properties with similar features used to determine Fair Market Value. View Recent Sold Comps.
- Cap Rate (Capitalization Rate)
- A metric for investment properties: Net Operating Income divided by Purchase Price. High-ROI investors use this to compare Fargo-Moorhead rental yields.
✍️ Transactional & Contract Terms
- Earnest Money
- A "good faith" deposit (usually 1-3%) held in Escrow until closing. FAQ on Offers.
- Contingency
- A condition (like inspection or financing) that must be met for the contract to remain valid.
- 1031 Exchange
- A tax-deferred strategy allowing investors to swap "like-kind" properties to defer capital gains taxes. Popular in ND/MN agricultural and commercial sales.
⚖️ Legal, Property & Zoning Terms
- Zoning Regulations
- Local laws defining how property is used (Residential vs. Agricultural). Critical for Rural Farmsteads.
- Special Assessments
- Fees levied by local governments for public improvements (roads, sewers). **Essential for Fargo-Moorhead buyers to calculate.** Read Assessment Guide.
- Covenants & Restrictions
- Private rules governing property use, common in New Construction subdivisions like The Wilds or Brooks Harbor.
- Flood Zone
- Areas designated by FEMA as prone to flooding (Red River Valley). May require mandatory flood insurance.
Interactive Real Estate Terms: Guide for Fargo, West Fargo & Moorhead
Median Home Price
The midpoint sales price in Fargo-Moorhead; a stable indicator of neighborhood affordability.
Special Assessments
Local government fees for infrastructure. A major factor in Fargo-Moorhead property taxes.
Cap Rate
Net Income divided by Price. Used by local investors to gauge ROI on multi-family units.
1031 Exchange
A tax-deferred swap of investment property. Essential for our rural and commercial clients.
Days on Market (DOM)
Average time a property stays listed. Low DOM signals a fast-moving ND/MN seller's market.
Flood Zone
FEMA-designated areas prone to flooding. Requires specific insurance in the Red River Valley.
Zoning
City or County rules defining property use. Vital for our Rural Farmstead buyers.
Earnest Money
A "good faith" deposit (1-3%) held in escrow to show commitment to an ND/MN purchase.
Contingency
A condition (like inspection or financing) that must be met for the deal to close.
Closing Costs
Fees paid at settlement, including title and lender fees, typically 2-5% of the loan.
New Construction
Newly built homes. Often involves unique warranties and specific assessment structures.
Pre-Approval
A lender’s commitment of loan amount; essential for competitive offers in Fargo-Moorhead.
Rural Development Loan
USDA-backed loan for rural properties near Fargo, often offering $0 down options.
Amortization
The schedule of mortgage payments that gradually pays down the principal over time.
PITI
Principal, Interest, Taxes, and Insurance—the four components of a monthly payment.
Appraisal
A professional estimate of value required by lenders to secure your home loan.
Title Insurance
Protects against future claims or disputes regarding property ownership.
HOA
Manages rules in subdivisions like Village Green, The Wilds, or Brooks Harbor.
Lien
A legal claim against a property for unpaid debt; must be cleared before closing.
TIF
Tax Increment Financing. A local tool used to fund development in growth areas of FM.
This interactive tool is for educational purposes only. For local expertise in North Dakota or Minnesota real estate, please contact a licensed Vision Realty agent. Licensed in ND & MN.
ASK ND/MN EXPERTS: ZONING, CAP RATE & LEGAL FEES