Real estate consists of land, buildings, roads, fixtures, and a utility system. Property rights give a title of ownership to the land, improvements, and natural resources.
As the type of real estate has already been discussed, each type has a unique purpose and utility. For anyone wondering how this enormous industry works. What are its dynamics and its mechanism?
The explanation below will be a helpful guide:-
LAND:- The baseline for all types of real estate property is land. Spare land, vacant land, etc. Developers generally acquire land, then assemble it and rezone it so they can increase the density and increase the value of the property.
Residential:– Property consists of housing for individuals, families, or groups of people. Within residential, there are single-family homes, apartments, townhouses, and other types of living arrangements.
Commercial:-Property refers to land and buildings that are used by businesses to carry out their operations.
Industrial:- As the name suggests, land and buildings are used by industrial businesses for activities such as factories, mechanical productions, research and development, construction, transportation, and warehousing.
Now that we have summarised the four main categories, let’s explore some specific examples of different types of real estate property:-
Single-family dwelling homes, multi-family dwellings, Attached, Apartment, Multi-family houses, detached houses, portable houses, villas, and huts.
Overview of the real estate industry and how real estate works
Let’s explore how the real estate industry works and what the major jobs and careers are.
1. Development:- This process involves acquiring raw land, rezoning, construction and renovation of buildings, and sale or lease of the finished products to end users. By adding value to the land and taking a risk of financing a project developers earn a profit.
2. Sales and marketing:- To encourage sell of buildings and units they create sales and marketing firms that work with developers. These firms earn a commission for creating all marketing material and using their sales agents to sell the inventory of completed units.
3. Brokerage:- A firm that helps facilitate a transaction between the buyers and sellers of property. Their job is to represent either party and help them achieve a purchase or sale with the best possible terms.
4. Property Management:- These firms help owners to lease out the units in their buildings. Their jobs include collecting rent, showing units, fixing deficiencies, performing repairs, and managing tenants.
5. Real estate lending:- lenders have a huge part to play in the industry as virtually all properties and developments use leverage to finance their business. Lenders can include banks, credit unions, private lenders, and government institutions.
6. Professional services:- There is a variety of real estate professionals who work in the industry and help make it function. The most common example are accountants, lawyers, interior designers, stagers, general contractors, construction workers, and tradespeople.
Careers in Real Estate:-
- Analyst – Performing financial analysis and valuation of properties
- Appraiser – Valuing properties
- Agent – a sales agent or “realtor”
- Building Inspector – Someone who examines buildings and works with appraisers
- Commercial Broker – An agent who sells commercial properties
- Director of Real Estate – A corporate job
- Home Inspector – Someone hired to assess the quality of a home for a seller or purchaser
- Loan Underwriter – A person who analyzes the creditworthiness of a borrower
- Mortgage Specialist / Underwriter – A person who approves mortgage applications
- Real Estate Attorney – A lawyer who specializes in real estate transactions