REAL ESTATE: What Is It and How It Works

REAL ESTATE: What Is It and How It Works

Many people think that the term “real estate” is a part of the corporate world. Most people would think that the professionals with high academic intellect would be the only ones who can understand of buying and selling real estate properties. However, this is not always the case.

So first, how do we define “real estate”?

According to The Balance, real estate can be defined as the “property, land, buildings, air rights above the land and underground rights below the land”. It simply means “real property”.

There are four types of real estate:

RESIDENTIAL REAL ESTATE

-Resell and newly-constructed houses belong to this list. One of the most common residential real estate is a single-family home. Condominiums, co-ops, townhouses, duplexes and vacation homes are some of its type.

COMMERCIAL REAL ESTATE

-These type of real estate includes shopping centers, malls, medical and educational facilities, hotels and offices and many more that are owned to produce income. A real estate is considered commercial even though it is residential if it is used to create money.

INDUSTRIAL REAL ESTATE

-These buildings and properties are used for manufacturing purposes. They are also used for research, production, storage and distribution of any goods. Some examples would be factory buildings and warehouses.

LAND

-These properties include vacant land, working farms and ranches. They may either be undeveloped, early developed, reused or site assembled.

So how does the industry of real estate works?

Real estate properties are very necessary when it comes to the economic aspect of a given area. It is very crucial in the economic growth. This industry also refers to buying, selling and producing real estate properties.

There are different factors and components present in this industry

BUILDING CONSTRUCTION

This includes residential, commercial and industrial real estates. It is one of the most important components of the gross domestic product.

NEW HOME BUILDING

This includes construction of single-family homes, townhouses and condo.

REAL ESTATE AGENTS

They are necessary as they assist homeowners, businessmen, investors, and clients to buy and sell different types of real estates.  There are two types of real estate agents:

Seller agent – They are the ones who help in the negotiation process when it comes to selling your properties. They are the ones who will help a client get the highest price possible when selling a real estate property.

Buyer agent- They are the ones provide services for a home purchaser. They know the basic things that their clients have to know about buying any type of real estate. They have the connections and ability to negotiate for a reasonable deal. They also negotiate on your behalf to ensure that you will get the kind of property you deserve.