Real Estate Business: What Is It?
The real estate business industry is one of the crucial economic drivers of any country. The term real has come from Latin word ‘res,’ which means things. ‘Real estate’ all together means the physical property, for instance, land, buildings, etc. So, evidently, the business of real estate means dealing with such properties, including the natural resources on them. Such as crops, minerals, water, etc.
Some say the word real has also come from the Latin word ‘rex’ that means ‘royal.’ It is probably because in the past kings used to own significant portions of lands in the kingdom.
Now there are four types of real estate, and it is common in most of the countries.
- Residential Real Estate: Condominiums, townhouses, single-family homes, duplexes, triplexes, townhouses, holiday homes, etc., even the resale ones fall into this category.
- Commercial Real Estate: Any physical property that has been built or used (or still in use) for commercial purpose belong to this group. For instance, shopping malls, strip malls, educational buildings, hospitals, hotels, etc. Even the residential apartments fall into this category since they are built to generate revenue.
- Industrial Real Estate: Buildings used for producing, storing and distributing goods mainly belong to this category. The manufacturing buildings, properties, and warehouses are included too.
- Land Real Estate:Farms, ranches, vacant lands come under this category. Reused vacant lands are also part of this business. Real Estate Business & its Components
- Real Estate Broker or Realtor: Real estate brokers or realtors usually own his franchise or firm that deals with all of the four types of real estate. They are liable for signing the final contract between a buyer and a seller.
- Real Estate Agents: These agents work for brokers. Whenever any deal gets signed, the broker gives the agent commission. It can be vice-versa too. The agents usually search for clients who are interested in properties, and the broker handles the aftermath. In some cases, a real estate agent can assist a homeowner or an investor to buy or sell his property.
- Seller’s Agent: Seller’s agent helps the owner to get an ideal buyer through multiple listing sites or with the help of his professional contacts. Either way, an agent helps you to get a buyer for your property in a shorter time frame. An agent will also assist you in presenting your property properly to the buyer so that you can get a better offer.
- Buyer’s Agent: These agents help a buyer to find the most suitable property for him, as they know the local market very well. Also, they will negotiate for you and find you an affordable estate. So, that you don’t have to stretch your budget.
- Everyone nowadays wants to invest in real estate business because of its high-profit margin. But to do that or to sell or buy a property you need the help of real estate agents. It is because they have impeccable professional know-how and adequate knowledge of the locality and the industry.