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Glossary of Terms beginning with O

O

Obsolescence

The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.

Occupancy

A physical presence within and control of a property.

Occupancy Rate

The percentage of properties in a given area that are occupied.

Octopus Receptacle

An outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.

Off-Street Improvements

Designated parking spaces associated with a particular building or other structure which are not located on public streets.

Offsite Improvements

Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

Old Termite Activity

Where no termites are currently active, but indications of past activity can be seen.

On-Site Improvements

Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

Open Space

Any land that has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.

Open Splice

An uncovered electrical connection.

Original Equity

The amount of cash a home buyer initially invests in the home.

Original Principal Balance

The total amount of principal owed on a mortgage loan at the time of closing.

Origination Fee

Refers to the total number of points paid by a borrower at closing.

Owner Financing

A transaction where the property owner provides all or part of the financing.

Owner Occupied

The state of property wherein the owner occupies at least some portion of the property.

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