Real Estate can be defined as land, property, buildings & air-space rights as well as the underground rights below the owned land.
In a nutshell, real estate is ‘real’, i.e, physical/tangible.
Real estate can be broadly divided into four categories, name residential real estate, commercial real estate, industrial real estate & land.
1. Residential Real Estate- Newly-constructed homes, as well as resale homes, fall under this category.
2. Commercial Real Estate- This category of real estate included shopping & strip malls, medical & educational physical institutions, hotels & offices.
Apartment buildings can be considered commercial real estate since they are used to generate income.
3. Industrial Real Estate- This category includes factory buildings & warehouses.
Buildings which distribute goods can also be considered commercial real estate.
4. Land- This category includes vacant land. There are three more subcategories within this category which are undeveloped, early development stage & reuse.
Real Estate- How does it work?
Real estate isn’t confined to just physical properties such as land & buildings, the act of production, buying & selling also falls under real estate. Real estate can act as leverage for the economic growth of a city & is crucial.
The construction of new buildings includes residential, commercial & industrial buildings.
The building of new homes is a very important category which includes the construction of family-homes, townhouses as well as condominiums.
Real estate agents help homeowners, businessmen & investors trade all the four types of real estates.
There are sellers’ agents who aid the process of finding buyers through either multiple listing services or their contacts. They help with fixing the price of the property with the help of recently sold properties which are known as “comps” as reference prices. They can help with negotiating with the prospective buyers, which in turn, will help the seller get the maximum price.
There are buyers’ agents as well who help the buyers with buying properties since they have a knowledge of the local market. They can find a property which meets the criteria of the buyer & then compare the prices which are known as “doing comps”.
This allows the agents to find the most affordable properties. The agents will also negotiate for the buyers by pointing out reasons to the seller as to why they should accept a lower price.