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How Does Real Estate Work?

How Does Real Estate Work?

When we say “real estate”, most people would think that this is a term used by the people in the professional level. They often associate this term to the jobs under the corporate field. However, this is not always the case and this should not be.

What is real estate and how do we define it?

A definition coming from The Balance suggests that real estate is defined as ““property, land, buildings, air rights above the land and underground rights below the land”. Simply put, real estate also means “real property”

4 types of real estate:

RESIDENTIAL REAL ESTATE

To understand better, residential real estate refers to any old or newly-constructed houses that are considered as home for citizens. They can be classified as condominiums, co-ops, townhouses, duplexes and vacation homes.

COMMERCIAL REAL ESTATE

-These are infrastructures that earn money. This is perhaps the simplest way to define commercial real estate. They are made to produce income. Residential real estates can be classified as commercial if they are being used to create money. Among them are shopping centers, malls, medical and educational facilities, hotels and offices.

INDUSTRIAL REAL ESTATE

-They are the buildings or infrastructures used to manufacture products. Aside from manufacturing, they can also be used as laboratories for research, experiments, and production of goods.

LAND

-They are the spaces that are vacant or used as farms and ranches.

Types of real estate agents

There are two major types of real estate agents; the seller and the buyer. So how do they differ with each other?

The seller agent’s job is to help an owner in the process of negotiating with the price of his property. One of the main jobs of sellers is to make sure that they will get the highest price possible.

On the other hand, buyer agents are the ones who have to make sure that their clients are getting reasonable deals. They have to make sure that their clients would get the property they deserve.

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THINGS YOU HAVE TO CONSIDER WHEN BUYING A HOME

Buying your own property is one of the most important decisions you have to make. Before making any decision, you should be sure that you already have weighed the pros and cons of doing so. Remember that buying a house or a property is a long-time financial commitment. You have to prepare not only your savings but yourself as well. It is sometimes considered as an investment because we know that properties increase their value through time. But not just because its value will increase in the next 50 years does not mean it is worth it to purchase that particular property. As mentioned you should have examined all the advantages and disadvantages before doing so.

  • ASK YOURSELF IF IT IS WORTH IT

-Just because a house is on sale at 30% does it mean that you have to take that offer. Examine if the discount is really what would apply and if the property you will get in the end is worth every single penny and stress. You would not want a damaged steel garage door that can only be fixed by 24-hour emergency repair service in Wichita. Always go on what is the best.

  • STUDY THE HOUSE THAT YOU ARE PLANNING TO BUY

-If you will buy a house, visit it as often as possible. Know more about it and be sure that you are not paying for something that is overpriced in the market. Make sure that you also know something around the house. Socializing with your neighbors is a good starter.

  • BE INVOLVED IN THE PROCESS OF BUYING YOUR HOUSE

-Do not let agents handle everything. Make sure that you are still aware of what is happening, of the people you need to negotiate to, of the pros and cons of purchasing that property. Do not let yourself be isolated from the process. The process is a very stressful occasion. Do not turn your back against it just because you are stressed. Make sure to be aware of everything you need to know.

  • BEWARE OF FIXER-UPPERS

-While you are in the process of purchasing your house, there are people who would attempt to take advantage of you. Beware of them. Having a transaction with them has a great possibility that they will do more harm than good. Be alert and aware of everything that is happening around you. If you encounter this kind of situation, be sure to remind yourself with tip number 3. Get yourself involved in the process so that you know what and what not to listen.

  • BE PATIENT

-Do not decide just because you are too excited or just because you are initially disappointed. Be patient enough to pave way for better choices. Make sure that you have thought of your decision over and over again even if it means having to wait for a long period of time. It is better that you take long enough if it means having the right and perfect decision.