Different Types of Real Estate
Real estate refers to a property and the permanent, tangible improvements attached to it along with its natural resources such as water, crops and minerals. Those tangible improvements may include a roadway, a septic system inserted in the ground or a building erected there. Therefore these structures are called improved, and without them, it’s unimproved. On the other hand, when used as a business term, it refers to selling, buying and producing properties.
Types of real estate.
There are four known types of real estate’s such as:
1. Residential real estate.
Commercial real estate includes both the resale and newly constructed homes, with the most common among this category being the townhouses, vacation homes, triple-deckers, condominiums and co-ops.
2. Commercial real estate.
Commercial real estate comprises shopping centers, medical buildings, educational buildings, strip malls, offices and hotels. Because they are owned to produce income, apartment buildings can also fall under this category.
3. Industrial real estate.
They include warehouses, property and manufacturing buildings. Buildings under this category can be used for research, storage, production, and distribution.
4. Pieces of land.
They include working homes, ranches and vacant lots. The subcategories under pieces of land include developed and undeveloped properties.
How real estate works.
Real estate can shift from improved to unimproved and vice versa. It can also be purchased or sold. Owned privately or by the government. It can also be impacted by certain entities such as transfer in land ownership, improvement of the surrounding areas and adrift in the economy. It can also impact directly on the economy of the given country.
Agents of real estate.
Real estate agents play a great role as specialists in assisting people, investors and businesses in selling and buying properties. The sellers and buyers find those properties through listing services and professional contacts. When you’re selling a property and seek their services, those agents use listings of recently sold properties as a comparable, thus helping you spruce up your property, which helps it look best to potential buyers. They then act as the brokers, thus getting the highest possible price. Thus real estate agents provide similar services to the home purchasers.