Prospective homebuyers may come across various abbreviations and acronyms when perusing a real estate listing or looking for a property on a realtors’ website. Here are some definitions of the most common real estate abbreviations and acronyms:

1. __ABR__: An accredited buyer representative, or ABR, is a special designation for [real estate agents](https://www.masterclass.com/articles/how-to-become-a-real-estate-agent) offered by the National Association of Realtors. 
2. __AC__: In real estate listings, AC stands for “air conditioning,” which means that the listed property has an air cooling system. 
3. __ARV__: After repair value, or ARV, is the property’s estimated market value after it undergoes specific repairs and renovations. ARV is a term often used in [house flipping](https://www.masterclass.com/articles/house-flipping-guide). 
4. __BSMT__: In real estate listings, BSMT stands for “basement,” which means that the listed property has a below-ground space. 
5. __CAC__: In real estate listings, CAC stands for “central air conditioning,” which means that the listed property has a whole-home air-cooling system. 
6. __CCIM__: A certified commercial investment member, or CCIM, is a special designation for real estate agents specializing in commercial real estate and investment properties, offered by the National Association of Realtors.
7. __CMA__: A comparative market analysis, or CMA, is a report that estimates a property’s value based on comparable properties that were recently sold in the area. 
8. __CC&R__: CC&R (sometimes written CCR) stands for “covenants, conditions, and restrictions,” or the set of rules and regulations that are in place in planned communities, usually determined and enforced by a homeowners’ association. 
9. __CoCR__: CoCR (or CoC return) stands for “cash-on-cash return,” a [return on investment](https://www.masterclass.com/articles/how-to-calculate-return-on-investment-roi) calculation in which the investor calculates the annual return they have received from a property and compares it to the yearly amount they have paid in mortgage payments or other costs. 
10. __CPM__: Certified property manager, or CPM, is a special designation for property managers offered by the National Association of Realtors. 
11. __CRB__: CRB stands for “certified [real estate broker](https://www.masterclass.com/articles/real-estate-broker-vs-agent),” a special designation for brokers offered by the National Association of Realtors. 
12. __CRE__: CRE, or [commercial real estate](https://www.masterclass.com/articles/what-is-commercial-real-estate), refers to real estate used for business purposes rather than private property (or residential real estate).
13. __CRS__: A certified residential specialist, or CRS, is a special designation that the National Association of Realtors awards to residential real estate agents after they meet specific requirements.
14. __FDR__: In real estate listings, FDR stands for “formal dining room,” which refers to a room usually off the kitchen that can fit a sit-down dining room table for evening meals. 
15. __FHA__: FHA, or Federal Housing Administration, is a department in the United States government that provides special mortgage insurance on FHA-approved loans. 
16. __FMV__: FMV, or [fair market value](https://www.masterclass.com/articles/fair-market-value-explained), is the estimated price that a property will sell for in a completely open market. In real estate transactions, a home’s fair market value is based on a combination of factors, including current market trends, appraisal value, and an assessment of comparable homes in the area.
17. __FSBO__: For sale by owner, or FSBO, is a designation for a property sold by the property owner rather than through a real estate agent or brokerage. 
18. __GAR__: In real estate listings, GAR (or gar) stands for “garage,” meaning that the listed property has a part of the house designated for car storage. Some listings may also use the abbreviations “att” (for attached garage), “det” (for detached garage), or “1C” or “2C” (for one-car or two-car garage). 
19. __GRI__: GRI, or graduate realtor institute, is a special designation for real estate agents offered by the National Association of Realtors. 
20. __GRM__: Gross rent multiplier, or GRM, is a method for calculating return on investment in which investors look at the ratio of the property’s price against its annual [gross income](https://www.masterclass.com/articles/what-is-gross-income). This calculation helps determine how much time would need to pass before the property pays back the initial investment. 
21. __HB__: In real estate listings, HB stands for “half bath,” which means that the listed property has a bathroom with a toilet and sink (rather than an FB, or full bath, which also includes a bath or shower setup). 
22. __HOA__: An HOA, or homeowners association, is a community organization that determines and enforces local rules known as covenants, conditions, and restrictions, or CC&Rs. In communities with HOAs, homeowners automatically become members of the association when they buy a local property and must pay monthly or yearly HOA dues, which the elected board of directors uses to make neighborhood improvements. 
23. __HVAC__: In real estate listings, HVAC stands for “heating, ventilating, and air conditioning,” meaning that the listed property has systems throughout the house for warming and cooling the air. 
24. __IRR__: IRR, or internal rate of return, is a way to measure return on investment in which investors calculate their expected profit over a specific period of time, usually annually. 
25. __MB__: In real estate listings, MB stands for “master bedroom,” meaning that the listed property has a particular bedroom that is larger than the other bedrooms. 
26. __MLS__: A [multiple listing service](https://www.masterclass.com/articles/what-is-mls-in-real-estate), or MLS, is a database of homes for sale in a particular area. An MLS helps brokers find and compare properties for their clients, establish contractual offers, share information amongst each other, and gather the required information for home appraisals.
27. __NAR__: The National Association of Realtors (NAR) is an organization that offers certifications and special designations to increase real estate agents’ credibility. 
28. __NOI__: NOI stands for “net operating income,” which is a way to measure return on investment that simply compares revenue against operating expenses. 
29. __NOO__: NOO, or non-owner occupied, refers to a residence that a real estate investor purchases without intending to live in it themselves. 
30. __LOC__: LOC stands for “line of credit,” typically referring to an investment property line of credit, which is a short-term financing option that homebuyers can use to purchase or renovate properties. 
31. __LLC__: LLC, or [limited liability company](https://www.masterclass.com/articles/limited-liability-company-explained), refers to any kind of organized company that serves as a barrier between legal proceedings and a business owner. For example, in real estate, investors may choose to form an LLC when purchasing or selling investment properties. 
32. __LTV__: LTV stands for “loan to value,” which is an assessment that compares the ratio of mortgage size to the appraised value of the property. Many lenders use the LTV ratio to determine the size of the [mortgage](https://www.masterclass.com/articles/learn-about-home-mortgages) they will offer to a borrower. 
33. __LR__: In real estate listings, LR stands for “living room,” meaning that the listed property has a room separate from a bedroom or kitchen, typically where occupants can gather and relax. 
34. __POA__: POA stands for “power of attorney”—in real estate, some buyers or sellers will extend power of attorney over to another person, who then has the authority to buy or sell the property for them. 
35. __PMI__: PMI, or private mortgage insurance, is a regular fee that lenders may require a borrower to pay to ensure they won’t default on the loan. Lenders may require a borrower to apply for PMI if their down payment is especially small (usually less than 20 percent) or the loan is substantial. 
36. __REIT__: REIT stands for “real estate investment trust,” which is a commercial organization that owns or funds properties that generate income. 
37. __REO__: Real estate owned (REO) refers to property owned by the lender rather than a homeowner. Typically, homes can become REO if they foreclose and then don’t sell at auction. 
38. __ROI__: ROI stands for “return on investment.” In real estate, ROI refers to the profitability of a particular investment—a property with a high return on investment means that the owner saw a high profit after their initial purchase or renovation. 
39. __RTO__: Rent to own, or RTO, is a renting structure that allows renters to make monthly payments with the eventual option of buying the property rather than simply paying rent. Learn about [lease-purchase agreements](https://www.masterclass.com/articles/lease-purchase-agreement-explained).
40. __SFH__: SFH, or single-family home, refers to a free-standing property that houses one family rather than a multi-family structure like an apartment complex, [condo building](https://www.masterclass.com/articles/buying-a-condo-explained), or duplex.
All you need is a [MasterClass Annual Membership](https://www.masterclass.com) and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market. 
The real estate industry uses several unique acronyms and abbreviations. Understanding these terms can be beneficial for buyers and sellers.

The real estate industry uses several unique acronyms and abbreviations. Understanding these terms can be beneficial for buyers and sellers.

40 Common Real Estate Abbreviations and Acronyms 

Prospective homebuyers may come across various abbreviations and acronyms when perusing a real estate listing or looking for a property on a realtors’ website. Here are some definitions of the most common real estate abbreviations and acronyms:<ol class="mc-m-4"><li class="mc-my-4"> 1. ABR: An accredited buyer representative, or ABR, is a special designation for <a href='https://www.masterclass.com/articles/how-to-become-a-real-estate-agent' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-become-a-real-estate-agent","linkCopy":"real estate agents","category":null}'>real estate agents</a> offered by the National Association of Realtors. </li><li class="mc-my-4"> 2. AC: In real estate listings, AC stands for “air conditioning,” which means that the listed property has an air cooling system. </li><li class="mc-my-4"> 3. ARV: After repair value, or ARV, is the property’s estimated market value after it undergoes specific repairs and renovations. ARV is a term often used in <a href='https://www.masterclass.com/articles/house-flipping-guide' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/house-flipping-guide","linkCopy":"house flipping","category":null}'>house flipping</a>. </li><li class="mc-my-4"> 4. BSMT: In real estate listings, BSMT stands for “basement,” which means that the listed property has a below-ground space. </li><li class="mc-my-4"> 5. CAC: In real estate listings, CAC stands for “central air conditioning,” which means that the listed property has a whole-home air-cooling system. </li><li class="mc-my-4"> 6. CCIM: A certified commercial investment member, or CCIM, is a special designation for real estate agents specializing in commercial real estate and investment properties, offered by the National Association of Realtors. </li><li class="mc-my-4"> 7. CMA: A comparative market analysis, or CMA, is a report that estimates a property’s value based on comparable properties that were recently sold in the area. </li><li class="mc-my-4"> 8. CC&amp;R: CC&amp;R (sometimes written CCR) stands for “covenants, conditions, and restrictions,” or the set of rules and regulations that are in place in planned communities, usually determined and enforced by a homeowners’ association. </li><li class="mc-my-4"> 9. CoCR: CoCR (or CoC return) stands for “cash-on-cash return,” a <a href='https://www.masterclass.com/articles/how-to-calculate-return-on-investment-roi' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/how-to-calculate-return-on-investment-roi","linkCopy":"return on investment","category":null}'>return on investment</a> calculation in which the investor calculates the annual return they have received from a property and compares it to the yearly amount they have paid in mortgage payments or other costs. </li><li class="mc-my-4"> 10. CPM: Certified property manager, or CPM, is a special designation for property managers offered by the National Association of Realtors. </li><li class="mc-my-4"> 11. CRB: CRB stands for “certified <a href='https://www.masterclass.com/articles/real-estate-broker-vs-agent' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/real-estate-broker-vs-agent","linkCopy":"real estate broker","category":null}'>real estate broker</a>,” a special designation for brokers offered by the National Association of Realtors. </li><li class="mc-my-4"> 12. CRE: CRE, or <a href='https://www.masterclass.com/articles/what-is-commercial-real-estate' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-commercial-real-estate","linkCopy":"commercial real estate","category":null}'>commercial real estate</a>, refers to real estate used for business purposes rather than private property (or residential real estate). </li><li class="mc-my-4"> 13. CRS: A certified residential specialist, or CRS, is a special designation that the National Association of Realtors awards to residential real estate agents after they meet specific requirements. </li><li class="mc-my-4"> 14. FDR: In real estate listings, FDR stands for “formal dining room,” which refers to a room usually off the kitchen that can fit a sit-down dining room table for evening meals. </li><li class="mc-my-4"> 15. FHA: FHA, or Federal Housing Administration, is a department in the United States government that provides special mortgage insurance on FHA-approved loans. </li><li class="mc-my-4"> 16. FMV: FMV, or <a href='https://www.masterclass.com/articles/fair-market-value-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/fair-market-value-explained","linkCopy":"fair market value","category":null}'>fair market value</a>, is the estimated price that a property will sell for in a completely open market. In real estate transactions, a home’s fair market value is based on a combination of factors, including current market trends, appraisal value, and an assessment of comparable homes in the area. </li><li class="mc-my-4"> 17. FSBO: For sale by owner, or FSBO, is a designation for a property sold by the property owner rather than through a real estate agent or brokerage. </li><li class="mc-my-4"> 18. GAR: In real estate listings, GAR (or gar) stands for “garage,” meaning that the listed property has a part of the house designated for car storage. Some listings may also use the abbreviations “att” (for attached garage), “det” (for detached garage), or “1C” or “2C” (for one-car or two-car garage). </li><li class="mc-my-4"> 19. GRI: GRI, or graduate realtor institute, is a special designation for real estate agents offered by the National Association of Realtors. </li><li class="mc-my-4"> 20. GRM: Gross rent multiplier, or GRM, is a method for calculating return on investment in which investors look at the ratio of the property’s price against its annual <a href='https://www.masterclass.com/articles/what-is-gross-income' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-gross-income","linkCopy":"gross income","category":null}'>gross income</a>. This calculation helps determine how much time would need to pass before the property pays back the initial investment. </li><li class="mc-my-4"> 21. HB: In real estate listings, HB stands for “half bath,” which means that the listed property has a bathroom with a toilet and sink (rather than an FB, or full bath, which also includes a bath or shower setup). </li><li class="mc-my-4"> 22. HOA: An HOA, or homeowners association, is a community organization that determines and enforces local rules known as covenants, conditions, and restrictions, or CC&amp;Rs. In communities with HOAs, homeowners automatically become members of the association when they buy a local property and must pay monthly or yearly HOA dues, which the elected board of directors uses to make neighborhood improvements. </li><li class="mc-my-4"> 23. HVAC: In real estate listings, HVAC stands for “heating, ventilating, and air conditioning,” meaning that the listed property has systems throughout the house for warming and cooling the air. </li><li class="mc-my-4"> 24. IRR: IRR, or internal rate of return, is a way to measure return on investment in which investors calculate their expected profit over a specific period of time, usually annually. </li><li class="mc-my-4"> 25. MB: In real estate listings, MB stands for “master bedroom,” meaning that the listed property has a particular bedroom that is larger than the other bedrooms. </li><li class="mc-my-4"> 26. MLS: A <a href='https://www.masterclass.com/articles/what-is-mls-in-real-estate' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-mls-in-real-estate","linkCopy":"multiple listing service","category":null}'>multiple listing service</a>, or MLS, is a database of homes for sale in a particular area. An MLS helps brokers find and compare properties for their clients, establish contractual offers, share information amongst each other, and gather the required information for home appraisals. </li><li class="mc-my-4"> 27. NAR: The National Association of Realtors (NAR) is an organization that offers certifications and special designations to increase real estate agents’ credibility. </li><li class="mc-my-4"> 28. NOI: NOI stands for “net operating income,” which is a way to measure return on investment that simply compares revenue against operating expenses. </li><li class="mc-my-4"> 29. NOO: NOO, or non-owner occupied, refers to a residence that a real estate investor purchases without intending to live in it themselves. </li><li class="mc-my-4"> 30. LOC: LOC stands for “line of credit,” typically referring to an investment property line of credit, which is a short-term financing option that homebuyers can use to purchase or renovate properties. </li><li class="mc-my-4"> 31. LLC: LLC, or <a href='https://www.masterclass.com/articles/limited-liability-company-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/limited-liability-company-explained","linkCopy":"limited liability company","category":null}'>limited liability company</a>, refers to any kind of organized company that serves as a barrier between legal proceedings and a business owner. For example, in real estate, investors may choose to form an LLC when purchasing or selling investment properties. </li><li class="mc-my-4"> 32. LTV: LTV stands for “loan to value,” which is an assessment that compares the ratio of mortgage size to the appraised value of the property. Many lenders use the LTV ratio to determine the size of the <a href='https://www.masterclass.com/articles/learn-about-home-mortgages' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/learn-about-home-mortgages","linkCopy":"mortgage","category":null}'>mortgage</a> they will offer to a borrower. </li><li class="mc-my-4"> 33. LR: In real estate listings, LR stands for “living room,” meaning that the listed property has a room separate from a bedroom or kitchen, typically where occupants can gather and relax. </li><li class="mc-my-4"> 34. POA: POA stands for “power of attorney”—in real estate, some buyers or sellers will extend power of attorney over to another person, who then has the authority to buy or sell the property for them. </li><li class="mc-my-4"> 35. PMI: PMI, or private mortgage insurance, is a regular fee that lenders may require a borrower to pay to ensure they won’t default on the loan. Lenders may require a borrower to apply for PMI if their down payment is especially small (usually less than 20 percent) or the loan is substantial. </li><li class="mc-my-4"> 36. REIT: REIT stands for “real estate investment trust,” which is a commercial organization that owns or funds properties that generate income. </li><li class="mc-my-4"> 37. REO: Real estate owned (REO) refers to property owned by the lender rather than a homeowner. Typically, homes can become REO if they foreclose and then don’t sell at auction. </li><li class="mc-my-4"> 38. ROI: ROI stands for “return on investment.” In real estate, ROI refers to the profitability of a particular investment—a property with a high return on investment means that the owner saw a high profit after their initial purchase or renovation. </li><li class="mc-my-4"> 39. RTO: Rent to own, or RTO, is a renting structure that allows renters to make monthly payments with the eventual option of buying the property rather than simply paying rent. Learn about <a href='https://www.masterclass.com/articles/lease-purchase-agreement-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/lease-purchase-agreement-explained","linkCopy":"lease-purchase agreements","category":null}'>lease-purchase agreements</a>. </li><li class="mc-my-4"> 40. SFH: SFH, or single-family home, refers to a free-standing property that houses one family rather than a multi-family structure like an apartment complex, <a href='https://www.masterclass.com/articles/buying-a-condo-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/buying-a-condo-explained","linkCopy":"condo building","category":null}'>condo building</a>, or duplex. </li></ol>

40 Common Real Estate Abbreviations and Acronyms

All you need is a <a href='https://www.masterclass.com' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a> and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market.

Ready to Learn the Ins and Outs of the American Housing Market? 

The real estate industry uses several unique acronyms and abbreviations. Understanding these terms can be beneficial for buyers and sellers.

The real estate industry uses several unique acronyms and abbreviations. Understanding these terms can be beneficial for buyers and sellers.
