Real estate moves fast, and the language can get noisy. Investors who know the marketing terms behind the numbers can read demand, judge lead quality, and price deals with more confidence. Use this glossary as a practical cheat sheet you can keep coming back to – it translates buzzwords into decisions you can make.
Lead Generation Basics
A lead is anyone who shares contact info because they want more details about a property or service. Marketers track where leads come from using channels like search, social, and referrals, then score them by intent to separate lookers from buyers. Two costs matter most – cost per lead and cost per acquisition – since they tell you how much pipeline you can afford.
New Models and Niches
Traditional buy-and-hold is only one path investors take. Some investors use RealT real estate investing as a way to explore tokenized property shares with lower minimums and faster settlement. Others test co-living, rent by room, or mixed short and long-term strategies to smooth out cash flow across seasons.
Digital Channel Metrics
You will see click-through rate, conversion rate, and cost per click in every marketing report. A 2024 roundup by Resimpli notes that Facebook ads for real estate average a 1.59% CTR, which helps set expectations for ad performance across markets. Track CTR to gauge creative fit, then watch the conversion rate on your landing page to confirm that the audience is qualified.
Market Demand Signals
Absorption rate shows how fast available inventory gets sold or leased in a given period. A Colliers glossary explains it as the number of units sold in a time frame divided by total units available, which gives you a clean read on momentum. Pair absorption with days on market to see how competitive your entry or exit might be.
Pricing Tools Investors Read
A comparative market analysis is a pricing method that looks at recent local sales to estimate the list or offer price. After repair value is a forward-looking estimate that assumes your renovation plan is done – it is key for flips and BRRRR because it anchors both financing and exit. Days on market and list to sale ratio round out your picture by showing velocity and discounting.
Financing and Risk Ratios
Loan to value compares the loan size to the property value, and a lower LTV usually means better rates. Debt service coverage ratio measures net operating income against annual debt payments – lenders like to see this comfortably above 1, so the property pays its own note. Interest cover and break even occupancy are helpful cousins when you stress test a portfolio.
Property Performance Shorthand
Gross potential rent is what you collect at 100 percent occupancy before any losses. Net operating income is income minus operating expenses, and it powers most of your underwriting math. Cap rate is NOI divided by purchase price – use it as a quick yield check and a way to compare deals in the same submarket.
Marketing To Sales Handoff
A marketing qualified lead shows interest, while a sales qualified lead has the budget and timing to move. Strong handoffs define what information must be captured – name, phone, email, budget, timeline, and desired area – so follow up is fast and relevant. A clean customer relationship management system keeps this trail intact and lets you measure true return on ad spend.
Content and Search Terms
Search engine optimization is how your listings and pages earn organic traffic over time. On-page work covers titles, meta descriptions, headers, and copy that match what buyers and renters actually search. Off-page work builds authority with local citations and reviews so you rank for the neighborhoods where you want to own.
Creative that Converts
Great photos and floor plans increase time on page, which improves both quality score in ads and your organic rank over time. Short videos can preview the block, lobby, and unit flow – people want to feel the space before they book a tour. The call to action should be simple – schedule a showing, request a rent quote, or download the info pack.
Analytics that Matter
Attribution models show which touchpoints drove the lead – first click, last click, or a data-driven blend. Look at lead to tour rate, tour to offer rate, and offer to close rate to spot bottlenecks you can fix. When a channel looks cheap but does not convert, your lead quality is the issue – not your sales team.
The right terms make your reports useful, your underwriting sharper, and your choices quicker. You do not need to memorize every acronym – you only need to know which ones support your strategy and when to use them. Keep this list close and update it as your portfolio grows.