From suburban homes to high-rise office buildings in busy metropolitan areas, real
estate encompasses any land and the man-made attachments that factor into its
value. These can include anything from air rights above the property to underground
rights below the ground. Real estate can be owned by individuals, companies or
even governments.
For those interested in a career in real estate, it helps to understand how this
business works from start to finish. This article explores the different types of real
estate, the job titles and responsibilities that comprise the industry, and the process
involved in buying and selling property.
The four main categories of real estate are land, residential, commercial and
industrial. Each type of real estate has its own unique set of challenges and perks,
and the specific steps in each are slightly different. Land is the starting point, and
developers often buy land and combine it with other properties (called assembly) in
order to increase its size or boost its value. For more info https://www.prestigehomebuyers.co/we-buy-houses-nassau-county-ny/
Once land is purchased, it’s often rezoned in order to meet local planning
regulations. Then, the building process can begin. Homes and other structures can
either be built from the ground up, or an existing structure can be renovated to
accommodate a new use. In the latter case, a real estate investment group, or REIG,
may be involved in the project, purchasing and managing the property on behalf of
investors.
After a building is complete, it can be sold or leased. In some cases, an investment
property is rented out in order to make a profit, while others are “flashed” and
quickly resold – sometimes taking advantage of arbitrage and other times after
repairs that significantly raise the value.
In the modern world of real estate, buyers and sellers are able to access a huge
amount of information online. This allows them to compare home prices with the
rest of the neighborhood, view virtual tours, check government stats on traffic and
environmental hazards, and much more. Many potential buyers also secure the
services of a buyer’s agent in order to help them find properties that might
otherwise be out of their price range.
While this increased access to information is great for buyers, it can also be
overwhelming and can lead to some misinformation. That’s why it’s important for
buyers to take the time to interview and secure the services of a buyer’s rep early in
the process.
Real estate agents are responsible for assisting individuals, businesses and investors in buying and selling property. They typically work on commission, earning a percentage of the sale price for their services. This fee is usually split between the
listing and buyer’s agents. Generally speaking, a seller’s agent will make 3% of the
total sales price and a buyer’s agent will earn 3% of the total sales price. However,
this can vary depending on the area of the country and the market.
