Real estate is a term that is still confusing to many as some think it is the business involving the buildings and houses we live in. This is true to some extent; however, it does not entirely cover this terminology’s scope. Real estate refers to lands, buildings, properties, air rights, and underground rights above and below the ground.
The concept was said to have a Latin descent, with some form of royalty attached to it, since kings were known to own the kingdom lands. When the concept of real estate was first into the US market, it was so much embraced that the only real estate owners were only allowed to vote for a long time.
TYPES OF REAL ESTATE
Based on the definitions given above, it is evident that there are different sections of interest that real estate covers; hence, the various types explained below:
RESIDENTIAL REAL ESTATE
This is the most common real estate type as it involves personal properties, which could new and old constructions. Family owners and individuals interested in listing their homes for sales, in attracting interested buyers. These properties could be duplexes, quadplexes, triple-deckers, and other residences with higher values. Apart from family homes, townhouses and other condominiums are also listed as belonging to this category.
COMMERCIAL REAL ESTATE
Commercial real estates are those structures that are available for businesses; they are generally built for those willing to make some income from the structure. These could include shops, strip malls, and other offices. Hospitals and other medical centers also fall into this category. Individuals who rent or buy buildings they intend to use as schools are also considered into the commercial real estate market. Some personal buildings and residential areas are also considered commercial real estate, especially when the seller intends to make some income.
INDUSTRIAL REAL ESTATE
Industrial real estates are a little bit separate from the first two described above, and this is because the sales and construction are handled differently. The properties under this category include warehouses and other manufacturing buildings. These real estates are more in line with industrial matters such as production, storage, and distributions.
Research centers are also considered industrial real estate since the research results are intended to be used for industrial purposes. There can sometimes be a clash between commercial real estates and industrial real estates, especially when considering office buildings.
Landed properties are categorized separately because they are not erected properties than the other buildings listed above. Lands are also subcategorized as some can be underdeveloped, or still undergoing early development. Some other landed properties can also be listed as reuse and site assembly.
HOW IT WORKS
All of the properties listed above can be bought or sold. Interested sellers will list their properties, making it available for sale for interested buyers. Agents in the business also make it a job to connect buyers to the right sellers, while earning in the process. This is the basic mode of operation of the real estate marketLINKS