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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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