Main water shut-off valve

A main water shut-off valve is the primary valve that halts the flow of water from a water meter into a home.  The water flow to a house may need to be shut off when some type of water-related emergency arises, such as a broken pipe, or when plumbing work is being conducted.  The valve is typically located at the point where the water line from the exterior water meter enters the home, through the foundation under the home.  Some people choose to shut off their main water valve when they will be away from home for an extended period of time, which protects against unforeseen leaks in their absence.

Maintenance fee

A maintenance fee is the fee members of a homeowners' association are required to pay for the repair, maintenance, and upkeep of any common areas in the community.  Maintenance fees are generally paid monthly, although some homeowners´ associations may require payment annually or biannually.  Common uses for the money collected from maintenance fees include care of common area grass (mowing, watering, etc.), repair and upkeep of playground equipment, cleaning of any amenities such as swimming pools or walking trails, and in some instances, depending on the community, snow removal, trash pickup, or other services.  The more services a maintenance fee covers, the higher it typically is.

Managed-competition lots

Managed-competition lots are home sites on which buyers select a builder for their home from among one of several builders.  Also called competitive bidding, managed competition has a number of benefits.  First, the buyer can choose the lowest available price for construction of his or her home.  Builders who are involved in construction on managed-competition lots have an incentive to provide low prices and quality work that is completed efficiently and according to buyers´ demands, since providing service that is even slightly inferior to that offered by other bidders´ could cause a builder to lose out on a valuable construction job. 

Mansard roof

A mansard roof is a roof designed with four sides, each of which has two slopes, angled upward from the edge of the roof to a single square peak at the top.  The lower of the two slopes is very steep, often nearly vertical, while the upper slope is flatter and nearly horizontal.  Mansard roofs were particularly popular elements of construction of the 19^th century.  Because a mansard roof rises so high and so steeply, it was especially common in urban areas where space was limited, and where the interior of a building with a mansard roof could accommodate one, if not more, additional floors of living space.

Mantel

A mantel is the facing around a fireplace, often constructed of stone, marble, wood, or tile, or a variety of other materials.  Mantels can be very simple, with merely a ledge above the fireplace opening, or more substantial, with material all around the fireplace and, sometimes, a lower mantelpiece elevated above the floor.  A mantel can provide a display area; photographs and artwork are favorites to place above a fireplace.  In addition, a mantel can add aesthetic beauty to a home; some mantels have intricate and decorative designs that enhance a room.  Mantels can be self-installed with packaged kits, available at many home-improvement retailers.

Manufactured housing

Manufactured housing refers to prefabricated homes-that is, homes that are built completely or partially in factories and then transported to the location where they will be sold or used.  Manufactured housing was once synonymous with "mobile homes," but modern manufactured homes can range from very simple trailers to much larger dwellings that offer amenities like those typically found in homes built on-site.  Although some of today´s prefabricated dwellings may be equal in quality and price to traditional homes, manufactured houses retain some of the negative connotations once associated with mobile homes and trailer parks, and may thus be subject to special zoning restrictions.

Margin

Margin refers to a lending institution´s "retail markup" on a mortgage offered to a homeowner.  Mortgage companies, like any other retailer, offer a product-a loan-and expect to make some profit from providing that product.  That profit is realized by the margin tacked onto the base amount of a mortgage.  The full amount of interest a borrower must repay in addition to the principal on his or her own is the equivalent of the "index rate" of the mortgage plus the mortgage company´s margin percentage.  For example, a 6% rate on a mortgage from an institution charging a 2% margin would result in a payment for the borrower of 8%.

Market conditions

Market conditions are any factors that affect the sale and purchase of homes at a specific point in time.  These influences on sale and purchase prices may be community-specific or related to the more general national economy.  Community-specific market conditions that may prove influential include the population growth in a given area, increase or decrease in area amenities, increase or decrease in negative area conditions (such as incidences of crime), development, and numerous other factors that either encourage or discourage potential buyers.  On a national level, a troubled economy may result in poor market conditions, as buyers can

Market value

Market value refers to the price that a piece of property sells for in its specific location at a particular point in time.  Market value is determined by appraisal, and theoretically represents what estimated price a property should be bought and sold for.  Market value is most commonly determined by comparing the location, size, age, and condition of a property, as well as other factors, with similarly situated properties.  The market value is a valuable tool for buyers and sellers in determining what price to purchase or list a property at, and is the basis for determining an applicable property tax.

Masonry

Masonry refers to any brick, block, tile, or stone work on a building.  Individual masonry units are placed together and kept in place by a thick mortar.  Popular stone masonry materials include marble, granite, and limestone; block masonry may consist of concrete or glass block.  When laid properly, masonry work can be very strong and durable.  However, the pattern of the units, the quality of materials, and the capability of masonry workers can cause the quality of masonry work to vary.  Laying masonry can require significant time and effort, but small projects can be done oneself; for larger or more complicated masonry work, licensed professionals may be a better option.

Master-planned community

A master-planned community is a suburban neighborhood planned and constructed to include residential structures, commercial buildings, and work, educational, and community facilities.  Master-planned communities are becoming increasingly popular and are marketed as a way to participate in a lifestyle that harkens back to historical days of small towns and close-knit communities.  Master-planned communities are usually located in suburban areas, where space is available for such large-scale projects but where residents remain close to urban amenities.  Most master-planned communities have an overseeing body that ensures upkeep and maintenance of the community´s common areas and governs the rules and regulations imposed upon residents; their work is funded largely by homeowners´ association fees.

Maximum financing

Maximum financing refers to a loan amount that is within 5 percent of the highest loan-to-value ratio allowed for a particular property.  Loan-to-value ratio (LTV) is calculated by dividing the balance of a loan on the property by the market value on that property; the result is expressed as a percentage.  This percentage represents how much equity, or actual ownership, an individual has in the property-for example, an LTV of 80% indicates that the property owner has 20% equity.  Multiplying the equity percentage by the market value of the home results in one´s equity in a property in terms of a dollar amount.

Mechanic's lien

A mechanic´s lien is an encumbrance (a legal limitation on one´s ownership of a property, particularly when money is owed) filed by subcontractors or suppliers when they seek payment owed to them which has not been satisfied by a property owner.  Any person who has been hired to make repairs or improvements on a property and who has not been compensated for that work within the contractually agreed-upon time can put a mechanic´s lien, or "hold," on a property.  Such a lien prevents the property owner from selling the property until his or her debt to the workman has been satisfied.

Mechanical systems

Mechanical systems are those systems in a home that control certain functions, including a home's plumbing, wiring, heating and cooling systems.  Mechanical systems are so called because they require energy to function; this is opposed to, for example, nuclear or chemical systems.  Mechanical systems in a home are crucial to maintaining livable conditions, as they control electricity, temperature, lighting, water flow, and numerous other necessary functions.  Mechanical systems allow appliances to run, garage doors to open, and so on.  These systems must be properly maintained to ensure they continue to run safely and efficiently; periodic checks of the systems and/or professional inspections will keep them in working order.

Median price

The median price of property refers to a price that represents the numerical middle of the prices of the total number of homes for sale in that area.  In other words, the median price in a specified area is that which is the middle price when all prices for applicable properties are listed from lowest to highest.  Median price is NOT the same as mean, or average, price.  The mean price is the sum of the price of all properties in the specified area, divided by the number of properties.  A property may or may not be listed at that price.  Mean price, on the other hand, is the actual price of a property with a value halfway between the most and least expensive home prices.

Mediation

Mediation is a dispute-resolution process, an alternative to a court proceeding.  In mediation, which may be required by a court or selected as an alternative to litigation by the parties involved in the dispute, a neutral party works with the parties to resolve contract differences.  With respect to real estate disputes, mediation may involve discussion and resolution of issues such as the interpretation of certain contract terms, the condition of the property in question, the price, the time of transfer, and so on.  Mediation is advantageous over a court proceeding in that it allows parties to work out differences more quickly and less expensively.

Merged credit report

A merged credit report is a credit report that combines information from all major credit-reporting companies in a single document.  The "Big Three" credit-reporting companies are Equifax, Experian, and TransUnion Corporation.  Regardless of the source, a credit report is a record of a person´s financial behavior.  Each company provides a complete picture of a credit history based on its own specifications.  A merged credit report is simply one document that takes all information offered by each of the three individual reporting companies and combines it; many lending institutions prefer this format when evaluating an applicant´s eligibility for a loan.

Metes and bounds

Metes and bound referred to a long-time land surveying method, in which land is described in terms of shape and boundary dimensions.  Land surveying is the scientific technique by which positions of points of land and distances and angles between them are precisely determined, and may be accomplished by a variety of measurement methods, ranging from the very simple (such as the use of tape measures and altimeters) to the highly technical (such as Global Positioning Systems, or GPS, which provide improved accuracy).  Metes and bounds is a measurement long used in the surveying field and still honored today, involving reference points such as natural and man-made landmarks.

Mint condition

Mint condition in real estate refers to the condition of a house that is, in appearance and quality of construction, as close to brand new as possible.  Mint condition is sometimes alternatively called blue ribbon condition, a reference to the awarding of a blue ribbon in some competitions to the top entrant.  For a house to be considered in mint condition, it should have no visible defects and no hidden problems with mechanical, electrical, plumbing, structural, or other systems.  Evaluation of condition, however, is subjective; depending on one´s standards, a home may or may not be considered "mint." 

Mixed-income housing

Mixed-income housing is the distribution of housing in a neighborhood that is composed of residences of widely varying types and prices.  Mixed-income housing areas may include small apartments as well as large single-family homes, and may accommodate both the wealthiest individuals in an area as well as those living at or below the governmental poverty line.  Mixed-income housing is commonly found in large, established urban areas, where space for residences is limited; however, suburban and rural areas also may have mixed-income areas.  In a metropolitan area, for example, pricey town homes may be steps away from government-funded housing.  In rural areas, expensive estates may share land boundaries with low-income farms.

Mixed-use development

A mixed-use development is a property area that combines several different functions, including residential space, commercial establishments, public amenities, and other types of uses.  Mixed-use developments are similar in terms of planning and design to modern master-planned communities, in that many uses share space rather than being segregated into residential areas, retail areas, and so on.  Mixed-use development is common in urban areas; for example, a residential apartment may be located on the second floor of a building, the first story of which accommodates a retail or dining establishment.  Mixed-use developments are usually characterized by a vibrant atmosphere and enhanced social interaction.

Modification

A modification is a change; in terms of real estate, a modification refers to a change made to any of the terms of a loan agreement.  If a contract exists between a borrower of a loan and a lending institution and is signed by both parties, any modification must likewise be in writing and signed to effectively alter the original agreement.  Modifications may arise for simple reasons that are easy to resolve, such as the misspelling of names or other typographical errors, or for more complex reasons that can include a need to change the actual terms of the loan or its repayment due to a change in the borrower´s financial situation or personal desire.

Molding

Molding (sometimes spelled moulding) refers to the decorative trim elements in a home that are applied to walls, ceilings, and window and door openings to enhance the aesthetic appearance of the home.   Popular molding materials include wood, marble, or plaster.  Molding can be simple or quite intricate, such as the popular crown molding style, which flares elegantly at the top.  New home builders frequently market their homes as featuring, either as a standard offer or as an additional-cost option, decorative molding.  Professionally installed molding can range from affordable to expensive; self-installation materials are widely available at many home improvement retailers.

Money market account

A money market account is an account held by an individual with a lending institution which allows an individual investor to participate in specified managed investments and to withdraw funds if he or she so desires, subject to some lending institution-specific limitations.  A "money market" is a market for short-term loans of which both borrowers and lenders can take advantage.  A money market account may accumulate interest at a more favorable rate than a traditional checking or savings account, and is thus often a desirable alternative for depositors of money.  Money market accounts are generally of most use to account holders who maintain fairly high savings balances.

Money market funds

Money market funds are mutual funds that pool together the financial resources of all member individuals, and uses that conglomerate amount to invest in certain managed investments.  All mutual funds are legally required to be invested in low-risk securities, minimizing the risk of loss for investors.  Money market funds are typically invested in low-risk securities such as government securities, certificates of deposit (CDs), and companies´ commercial paper (including promissory notes, checks, and certificates of deposit).  Money market funds are a relatively safe way for investors to grow their money with lower payoffs but also less risk than other investments, such as stocks.

Mortgage

A mortgage is a legal document between a buyer of property, who is the borrower of money from a financial institution that is used for the property purchase, and the lending institution that makes the loan.  Mortgages are used almost always in real estate purchases, as few people have the means or the desire to pay cash for an investment as costly as real property can be.  A mortgage specifies the amount of money required to purchase a home at a definite interest rate; the property itself is used as collateral against the loan.  The property becomes security, or insurance, for repayment of the loan; if a mortgage is not repaid, the lender may be able to foreclose on the home.

Mortgage acceleration clause

A mortgage acceleration clause is a clause which allows a lending institution to demand that the entire balance of a loan issued to a borrower (or "mortgagee") be repaid in a single lump sum under certain circumstances.  Mortgage contracts typically specify if and when mortgage acceleration would apply; common instances include situations where a home is sold by the borrower to another party, where title to the property is changed without notice to the lending institution, when a loan is refinanced, or when the borrower defaults on a scheduled payment.

Mortgage banker

A mortgage banker is a company that provides home loans by using its own money.  Mortgage bankers secure themselves against the risk of borrowers defaulting on loans of money that the mortgage banker has loaned personally by selling the loans to investors, particularly insurance companies, and to Fannie Mae (the Federal National Mortgage Association, a United States government-sponsored corporation that buys mortgages, pools them, and then resells them to investors).  By selling a loan, the mortgage banker recovers its initial cost in loaning the money to the borrower, and passes the responsibility for collecting the loan money to another entity.     

Mortgage broker

A mortgage broker is a company that matches lending institutions with prospective borrowers of money who meet the specific lending institution´s criteria to qualify for a loan. The mortgage broker does not make the loan itself, but does profit for its matching services by receiving payment from the lending institution, which secures a loan customer, for its work.  Mortgage brokers streamline the lending process for both lenders and borrowers by collecting information on available entities and individuals and determining which lenders are likely to make loans to specific buyers.  This prevents time-consuming and expensive loan application processes that are unlikely to result in a relationship.

Mortgage insurance

Mortgage insurance is a type of insurance that is required by lending institutions with respect to some loans, particularly those that are most risky, in order to protect the lending institution from a possible default. All conventional loans that are secured by down payments of 20 percent of the purchase price of a property or less require private mortgage insurance (PMI).  PMI payments are made by the borrower just as payments for any other type of insurance, and cover the cost of reimbursing the lender for the loan should the borrower be unable to do so.

Mortgage life insurance

Mortgage life insurance is a special type of insurance, the terms of which state that insurance will pay for the outstanding balance of a mortgage in the event that the borrower dies before the full mortgage amount is repaid.  Mortgage life insurance usually carries expensive premiums; premiums and extent of coverage both depend, as regular life insurance does, on the borrower´s age, physical health, and other considerations.  When a mortgage life insurance plan is instated, the amount of coverage is equal to the outstanding balance due on the loan at that time, and the term of the plan expires automatically upon the death of the insured borrower.

Mortgage-interest deduction

A mortgage-interest deduction is a tax write-off that the Internal Revenue Service (IRS) allows most property owners to claim for the annual interest payments they make on their real estate loans.  The deduction applies to interest paid on any loan on a home, including a mortgage, a second mortgage, a home equity loan, or a line of credit secured by the home.  Deductible interest may be that applicable to all of a home-secured loan or only part, depending on the date and amount of the mortgage and other factors.  The IRS provides very specific guidelines regarding who is eligible to take a mortgage-interest deduction and how much that deduction may be.

Mortgagee

A mortgagee is a bank or other financial institution that lends money to a borrower (the mortgagor).  By making a loan that is secured by a borrower´s property, the mortgagee enters into an agreement with the mortgagor whereby the mortgagor agrees, in writing, to repay the loan under specific terms laid out in the loan agreement, most commonly prepared by the mortgagee.  The mortgagee has a claim to the property purchased with the loan it has issued to the mortgagor, and may insist on conditions to the loan that limit the borrower´s ability to sell his or her property while a balance remains outstanding on the loan.

Mortgagor

A mortgagor is the person who borrows money from a lending institution, or mortgagee, to purchase a house or other property. The mortgagor secures his or her loan with the property that the money is used to purchase, and the lender/mortgagee has a claim to the property purchased with the loan it has issued to the mortgagor, and may insist on conditions to the loan that limit the borrower´s ability to sell his or her property while a balance remains outstanding on the loan.  Mortgagors are responsible for following through with the terms of their agreement with the mortgagee, including amount and frequency of payments and the time period during which the mortgage must be fully paid.

Motivated buyer

A motivated buyer is any buyer who has a strong incentive to make a purchase of real property.  Motivated buyers are generally willing to pay a higher price, accommodate to defects or imperfections associated with a property, and expedite the transaction process.  Factors that could motivate a buyer include the sale of a previous residence and no current permanent residence, a job change requiring settlement in an area on an immediate basis, and other considerations.  Motivated buyers are willing to meet more of a seller´s demands during the negotiation process, but depending on the specific motivator, may or may not have sufficient financial resources to complete a purchase.

Motivated seller

A motivated seller is any seller who has a strong incentive to make a deal with a potential buyer of real estate.  Motivated sellers are easier for buyers to negotiate with towards an agreement more favorable to the buyer than sellers who are not concerned with an immediate sale of their property.  Sellers may be motivated for a number of reasons, including new jobs or a cooling seller´s real estate market (in which selling becomes more difficult and prices of real estate drop as the supply of available homes outpaces the demand for them by buyers).  Motivated sellers may be more willing to lower an asking price, make requested repairs, and expedite the transaction process.

Move-in condition

A house that is considered to be in move-in condition is a house that is ready for a new occupant.  In other words, move-in condition indicates that all repairs have been made and necessary maintenance has been accomplished by the previous owner/seller; move-in condition also may indicate that certain upgrades have been made to a property, such as improvements in landscaping, new paint, and the like.  When the term move-in condition is included in a home´s listing description, buyers who wish to locate and move into a new home quickly are more likely to be enticed to view a property and to agree to a price at or near the listing price.

Move-up buyer

A move-up buyer is a buyer of real property who has purchased at least one home previously, and who is looking for a bigger or more expensive subsequent home.  Move-up buyers are usually individuals who have realized an increase in resources, such as a larger income, and who want to devote some of those resources to a home that offers more space, more amenities, higher quality, or any combination thereof.  Move-up buyers usually are more willing to pay extra for upgrades above the standard basics that are included in a typical first or starter home.

Mullion

A mullion is a vertical dividing bar that is located between window lights or panels.  The framing element may be made of any material, but most often a mullion is composed of wood or aluminum; in some cases, stone mullions may be found used in windows to create an enhanced aesthetic appearance.  Mullions carry the dead load of glass back towards the home.  Mullions may be small, as in doors, or large and deep, as in curtain wall systems.  In some cases, mullions are used not for structural purposes, but for purely aesthetic reasons, to divide a glass feature as a less expensive alternative than the installation of numerous smaller panes of glass.

Multidwelling property

A multi-dwelling property is real property that contains individual units, each of which accommodates one of several households, but which carries only one mortgage.  The owner of the property, who is responsible for mortgage payments as well as property tax payments and any necessary maintenance or repairs, may or may not live on site at the multi-dwelling property.  In many cases, the owner is a landlord who leases the individual units on the multi-dwelling property to tenants, who provide the owner/landlord with an income through payment of rent.

Multifamily mortgage

A multifamily mortgage is a mortgage associated with a multifamily dwelling that accommodates more than four families.  A multifamily dwelling subject to a multifamily mortgage is in most cases an apartment building.  The multifamily mortgage is payable by the landlord, who in most cases is the owner of the property; he or she in turn is paid by the tenants, those who actually live in the units of the multifamily property, through rental payments.  Like other home mortgages, multifamily mortgages are offered in a variety of incarnations, including conventional mortgages and adjustable rate mortgages, or ARMs.

Multiple listing service (MLS)

The multiple listing service, or MLS, is a real estate service that combines the listings for all available homes in an area, with the exception of For-Sale-By-Owner (FSBO) properties, in one directory or database.  In other words, all properties available for purchase that are listed through a real estate agent or broker are included in the MLS, which a buyer can access through his or her real estate representative.  The MLS is searchable by various characteristics, so that buyers can narrow the available properties in an area to their personal preferences and needs, such as square footage and price.

Multiple purchase offers

Multiple purchase offers are instances of more than one offer for the purchase of a parcel of real property that tend to occur in hot markets or hot neighborhoods, or in association with properties that have some unique and highly desirable characteristic.  Sellers who have a property available that attracts multiple offers is in a position to get at least his or her asking price for a property, and sometimes more, as the prospective buyers making the offers raise their respective offers in an effort to outbid one another and gain the right to enter into a purchase agreement with the seller for purchase of the property.

Municipal housing inspector