Real estate: What Is It?

Real estate refers to property made up of improvements and land, which includes structures and fixtures roads, structures, and utilities infrastructure. Property rights grant a right of ownership to the land, improvements and natural resources, such as minerals and plants, animals and water.

Types of Real Estate

There are a variety of types of real estate, each having its own distinct purpose and use. The most common types are:

• Land
• Residential
• Commercial
• Industrial

If you’re trying to figure out how the industry operates and what each major category is, the information below will provide a useful guide.

1. Land

The land is the foundation for all types of property. Land is typically referred to as vacant land and undeveloped properties. Developers purchase land and then combine the land with property (called assemblies) and rezone it in a way that they can increase density and value of the property.

2. Residential

Residential real estate is houses for families, individuals or a group of individuals. It is the most commonly used type of property and the asset category which the majority of folks are acquainted with. Within the residential category, you can find apartment buildings, single-family homes townhouses, condominiums as well as other kinds of living arrangements.

3. Commercial

Commercial property is the land and structures utilized by companies to conduct their business. Some examples include malls for shopping, private stores, office buildings medical centers, parking lots and hotels.

4. Industrial

Industrial real estate is the land and structures which are utilized by industrial companies for various purposes like factories mechanical productions as well as research and development construction logistics, transportation and warehouses.

Examples of Real Estate

After having outlined the four major categories, let’s look at some specific examples of various kinds of real estate.

• Single-family home A home that is intended for just one family
• Multi-family residence A group of houses designed to accommodate multiple families
• Attached The unit is attached to an other (not freestanding)
• Apartment is an individual apartment in a building with multiple units. The boundaries of an apartment are typically determined by the border of locks or locked doors. Most often, they are seen in apartment buildings with multiple floors.
• A multi-family home Most often, they are observed in multi-story detached structures in which each floor is an individual unit or apartment.
• Condominium (Condo) A property that is comprised of each unit owned by a separate individuals.
• A detached house Free-standing structure that is not connected to any other structure (a stereotyped “home”)
• Mobile house Houses that can be moved using flatbed trucks
• Mobile Home A motorized vehicle that has a permanent home connected to it
• Villa – A house that has only one room, and usually a steep, pointed roof
• Hut – A home that is typically constructed from raw materials like bamboo, mud and clay

Overview of Real Estate Industry

Let’s look at how the business operates and what the main occupations and careers are. The real estate business can be broken down into different categories:

• Development
• Marketing and sales
• Brokerage
• Property management
• Lending
• Professional services (law, accounting, etc.)
• Let’s examine each of these areas of the business in greater in depth.

1. Development

Real development in the field of real estate is a procedure that involves the acquisition of land in raw form as well as the construction and remodeling of buildings, and leasing or selling the completed product to customers. Developers make money by enhancing the land (creating new buildings or improving them and rezoning.) and by taking on the chance of funding projects. Development companies create a brand new product, which is considered as the “primary market” or generation of new inventory.

2. Marketing and sales

Companies that sell and market products work together with developers to sell structures and units they build. They receive a commission to create all marketing materials and utilizing their sales representatives to market their inventory of units that have been completed. They typically concentrate on the creation of new units.

3. Brokerage

Real estate brokers is a company which employs a group comprised of agents from the state (realtors) who facilitate an exchange between purchasers and sellers of the property. Their task is to represent the parties and assist them to complete the purchase or sale on the most favorable conditions.

4. Property management

Property management companies help homeowners in real estate rent the apartments in their buildings. Their responsibilities include collecting rent, displaying the units, fixing issues or repairs, as well as managing tenants. They are charged fees, which are usually in the form of a percentage of rent to the property owner.

5. Real estate lending

Lenders play an important role in the business as nearly all developments and properties use the leverage (debt) to fund their operations. These lenders include credit unions, banks private lenders, and even government institutions.

6. Professional services

There are a myriad of real estate professionals that are employed in the field and aid in the operation. The most frequent examples (other other than those listed above) are lawyers, accountants as well as stagers, interior designers general contractors, builders and tradespeople.

Careers in Real Estate

If you’re seeking a job in real estate, you might think about any of the six fields of the business.

These are the top popular positions (titles) within the business:

• Analyst – Conducting analyses of the financial situation and valuation of properties
• Appraiser – Valuing properties
• Agent – a sales representative or “realtor”
• Building Inspector – A person who looks over buildings and collaborates with appraisers
• Commercial Broker – A person selling commercial real estate
• Director of Real Estate – A corporate job
• Home Inspector – A person employed to evaluate the condition of a property for a buyer or seller.
• Loan Underwriter – Someone who assesses the creditworthiness the borrower
• Mortgage Specialist/Underwriter – An individual who reviews mortgage applications
• A Real Estate Lawyer – Lawyer who is specialized with real estate transaction