Real Estate, What it is, types and how it works

Real estate is the property, land, and building, air right above the land and underground rights under the land. The term real estate means real or physical property.

Types of Real Estate

There are four types of real estate and all are described below.

1-Residential Real Estate

It includes homes for resale and new construction for residential purpose mean home. There are different categories in this regard but the most common is single-family homes. Other categories include high-value homes, duplexes, triple deckers, co-ops, townhouses, vacation homes, and multi-generational homes.

2-Commerical Real Estate

It contains shopping centers, strip malls, educational and medical building, offices and hotels. Apartment buildings are also considered as commercial because they are used for income  

3-Industrial Real Estate

It includes manufacturing building like factories, warehouses, mills.  The buildings are used for different purposes like research, production, storage, and distribution of goods. Sometimes, Buildings that are used for distribution of good are considered as commercial real estate.

4-Land Real Estate

The land contains vacant land, working farms, and ranches. A subcategory of vacant land includes undeveloped, early development or reuse.

How the Real Estate Industry Works

Real Estate business means producing new real estate, buying, and selling of real estate. Real State effects the economy of that area and the U.S economy in general. It’s a critical point of economic growth.

Construction of New Buildings:

It includes the construction of residential, commercial and industrial buildings. Construction of new buildings is a component of the gross domestic product. According to the news, in 2017, it contributed 7 percent ($1.03 trillion) to the U.S economy.

A major category is new home building which includes the construction of single-family homes, townhouses, and condominiums. The NAHB (National Association of Homes Builders) provide a monthly report on home sales and averages prices of homes. On these reports, different actions are taken.

Real Estate Agents are the medium between sale and purchase. They assist buy and sell properties. The industry is divided into specialists which only deal within their span.

Sellers’ Agents assist the seller. They help find a buyer for your property through multiple sources. They declare the price of your property according to the recently sold properties known as

“Comps”.

They also help you to renovate your property so it looks best to the buyer. They negotiate with the buyer to get you the higher price for your property.

Buyers’ Agents provide the same services to the purchaser. They know the market and area, so they can find the best match for you as described per your choice. They also work on prices and help you to find the least prices. They negotiate for you to convince the seller to sell his property at a lower price.

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