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Real Estate - Essay Example

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Real estate can be a fairly confusing concept for some people. The first thought for many is that real estate is the buying and selling of personal homes. However this would only cover one small part of real estate - residential real estate. With a little prodding and guidance these same people might even be able to reach the conclusion that farms are a form of real estate - agricultural real estate…
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Real Estate

Download file to see previous pages... It might be interesting to note that many sources define real estate as "land and everything made permanently a part thereof, and the nature and extent of one's interest therein" (Real Estate 2007). It is important to remember that the land may not be worth very much in and of itself. It is valuable because of the interest it holds for the owner. Perhaps the land is valuable because of its position in relation to something else. Or it could be valuable because of what lies underneath the soil such as oil, minerals, or even archeological treasures. Or perhaps valuable things reside on its surface such as timber, animals, or historical sites. Or it could simply be that the most valuable asset of land is what it can be used for. It then becomes clear that the true purpose of real estate is to create a situation in which the land is developed so it is being used to appropriately further the interest of its owner.
According to a brief review of real estate in Wikipedia (Real Estate 2008) real estate covers every step in the process of acquiring or disposing of land. When an individual wishes to find a particular property she may consult a real estate brokerage in hopes of either buying property or investing in property. Similarly an individual wishing to sell his property may also consult a real estate brokerage in hopes of finding a suitable buyer. Real estate offers many services for those wishing to sale property. Real estate marketing is a subfield of real estate that focuses solely on the issues related to the sale of property. It then becomes important to remember that buying and selling is not the only things that can be done with property.
Some individuals wish to retain ownership of their property for a variety of reasons but may allow others to use it. They may rent out the buildings or give permission for the land to be farmed or for a profit-generating structure to be built on it. In cases where the primary purpose of a property is to make a profit those involved move into the area of commercial real estate. Commercial real estate can involve the building of a hospital, parking garage, shopping mall, and in some cases (especially for tax and loan purposes) residential structures which will house a specific number of people (Real Estate 2008).
Keeping in mind that real estate includes the buildings as well as the land such individuals may require assistance in keeping up with all the things required of the myriad options and transactions required in dealing with property. Real estate has taken this into account and created yet another subfield called property management that devotes its time and resources to exactly this sort of arrangement. Property management tends to be a highly sought real estate service especially among those individuals who own several properties that are rented out and for commercial properties (Real Estate 2008).
All of this occurs before anything is to done to the land itself. When improves or additions are made to the land - such as building new structures - another branch of real estate called development comes to the fore as the property is restructured for a specific use. The possibilities to develop real estate are limited only by the human imagination, the availability of materials, and the money available for the project. Residential real estate relies heavily on the finances ...Download file to see next pagesRead More
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