The world of real estate is very vast and chatting success stories will require knowledge and effort. The consumer wants to get the best returns out of their real estate investments. People who are interested in becoming real estate experts as well need to know the intricacies of the market and how to navigate through it. Here, Hershey Rosen, owner of a Real Estate Company that specializes in providing the highest level of service in real estate, gives this guide to real estate to help you understand the industry and how it works.
Considering that the market is not only huge, but it also swings in circles. Therefore, the market is complex. Consumers need experts to guide them through the hassle of paperwork and help them to make the best decisions. And for this to happen, it is vital that any real estate agent understand how the market works.
What is Real Estate?
A real estate is a form of real, physical property such as land and any other immovable objects on it. These are immovable objects that can be anything on or underneath the land and they can be natural or man-made. These can be buildings, minerals, crops, minerals, or water.
“Real estate is not like other properties owned that can be moved such as vehicles, farm equipment, furniture or any other movable properties you can think of”, Hershey Rosen explains. However, improvements made on real properties such as buildings, electricity, water, and sewage systems, are considered permanent which makes it an improved real estate.
Real estate business on the other hand involves buying, selling, renting, and investing in real estate property such as land or building.
What are the Different Types of Real Estate?
The four main types of real estate include:
Residential:
whether new construction or resale homes, the aim is mainly for residential purposes. These include single-family homes, condominiums, duplexes, townhouses, duplexes, triple-deckers, high-value homes, multi-generational residences, and vacation homes
Commercial:
these are properties used for business purposes or to generate income. That is why apartment buildings are also included even though they might be for residential yet they still generate income for owners. Other examples include shopping centers, schools, strip malls, hospitals, gas stations, hotels, and offices.
Industrial:
these are properties used for manufacturing, research and development, storage, and distribution of goods.
Vacant land:
this undeveloped land on which homes and buildings are being made. It also includes vacant land and land use for agricultural purposes such as ranches, farmlands, and orchards.
Who are the People in Real Estate?
“Imagine having to work with a professional who will put your best interest at heart in order to land you a good deal? That’s what real estate agents are for, ” Hershey Rosen says. They help you to deal with complicated paperwork. They act as middlemen in negotiations. Plus, you are tapping into the wealth of knowledge and skills required to bring the most value to your home, he adds.
These agents have different types with each having different roles to play in buying and selling real estate. Here is a quick breakdown of these real estate agents and their roles.
Brokers:
brokers can be said to be ahead of the curve than agents. A broker can be an agent but an agent can’t be a broker. Brokers are expected to have more knowledge, education, and licensing than agents. That is why they can own a brokerage firm and even hire agents. Brokers help their clients whether buyers or sellers with paperwork, decision-making, and legal compliance.
Realtor:
a realtor is a member of the National Association of Realtors (NAR), the national trading association in the US. Realtors are sometimes confused with real estate agents. However, the designation and duties go beyond agents. Realtors can be brokers, salespeople, appraisers, and property managers within the industry.
Selling Agents:
these agents work exclusively for sellers and the role is mainly to sell. For this, they will have to stage the property and market it for sale either online or offline. They also determine the selling price and are actively involved in the sale and closing of the deal.
Buyers Agent:
as the name implies, they work with those looking to buy real estate. Hence, they search for properties for sale, organize showings, and help their clit throughout the buying and closing process.
A dual Agent:
dial agents work for both the buyer and the seller on the same transaction. However, there might be a conflict of interest involved and that is why it is being banned in certain states.
The Appraiser:
before the change in ownership, an appraiser assesses the value of a property whether residential or commercial or land to ensure its best needs the buyer’s needs.
How Can one Invest in Real Estate?
Investment in real estate can be lucrative and rewarding, Hershey Rosen says. Just like any other investment, investing in real estate also comes with gains and losses. However, if the investment has high risks, potential gains as well should be high. He adds.
Various ways Hershey Rosen suggests one can invest in real estate are Rental properties, house Flipping, home ownership, Real Estate Investment trusts, Real estate Investing online platforms, and a host of other options. When it comes to real estate investments, there are a lot of options to choose from and something out there to meet your investment needs.
