Natural Finish
A finish applied to wood that provides protection without masking the natural grain and color.

Natural Gas
A naturally occurring gas used as a fuel in furnaces and power plants. Natural gas is commonly found in oil-producing areas.

Needs-based Pricing
Asking price based on the amount of funds required to pay off the seller's mortgage, the cost of remodeling or the purchase of another house.

Negative Amortization
When the outstanding balance of a loan grows larger because each monthly payment is too small to cover both the principal and interest of that loan. This sometimes happens with adjustable rate mortgages.

Negative Cash Flow
When operating expenses exceed income and an owner must make a financial contribution.

Neighborhood
A district or locality characterized by similar or compatible land uses, often with a major street for shopping or restaurants.

Net Cash Flow
Income from investment property after expenses (principal, interest, taxes and insurance) are deducted.

Net Floor Area
Usable floor area after deducting stairs, walls, and similar features.

Net Income
The amount remaining when expenses are deducted from gross income.

Net Lease
Also referred to as a triple net lease, the lessee pays not only a fixed rental charge but also expenses on the rented property, including maintenance.

Net Listing
Listing agreement where the broker's commission is an amount above a net price set by the owner. If that price is not met, a commission is not earned.

New Town
A large mixed-use development designed to provide residences, general shopping, services, recreation and employment.

Nominal Loan Rate
The loan rate stated on the face of the loan note, which is different from the effective interest rate. If points are charged, the effective rate will be higher.

No Money Down
General term referring to real estate acquisition strategies based on seller-provided financing and/or existing loan assumption and minimal use of cash down payments. Using a maximum amount of leverage to achieve maximum profits from real estate investments.