Real estate is a cornerstone industry in our society. People in our society need to purchase and deal in property, and they need the hands of the experts to help comprehend and manage the transactions. In the past decades more or less, software and websites have revised the conventional real estate process. No matter how much the technology advances, it will never be able to take place of the real estate middleman – the agent. Although real estate is important to our society still, it remains an enigma to many customers. There is a lot that goes into buying and selling a property.
What Is a Real Estate?
“A property and the buildings on a specific piece of land is called a Real Estate”. A real estate also embraces the air and underground rights above and below the land correspondingly. The term, “real estate” stands for real or physical property.
Types of Real Estate:
There are 4 types of real estate, which are mentioned below:
- Residential Real Estate: It embraces newly constructed and resale homes. You may know that such a real estate includes single-family homes; this category also encompasses condominiums, townhouses, duplexes, and vacation homes.
- Commercial Real Estate: It typically includes the places where businesses are operated. This category encompasses shopping centers, strip malls, hospitals, colleges, hotels, and offices. Apartment buildings are often considered commercial; technically, they are residential.
- Industrial Real Estate: It encompasses manufacturing buildings and warehouses, which are used for research, production, storage, and product distribution.
- Land: It includes working farms and ranches. The land also means unoccupied land, such as undeveloped land and land on which homes or buildings are being assembled.
It is significant to comprehend the distinct types of real estate, as the sale and purchase of the properties differ depending on their types.
Who is Who in a Real Estate Business?
A multitude of people are involved in a real estate business. Moreover, if you have ever bought or sold a property, then you would have likely worked with some or all of them. Let us see: Who is who in a real estate business?
- The Real Estate Agent: “The person who serves as a liaison between buyers or sellers and the industry itself is called the Real Estate Agent.”
- The Seller’s (Listing Agent): “The person who works exclusively with people selling the real estate, such as a home or office building is called the Seller’s Agent.”
- The Buyer’s Agent: “The person who works with people looking to buy the real estate is called the Buyer’s Agents.”
- The Broker: “The person who buys or sells for another in exchange for the commission is called the Broker.”
- The Mortgage Lender: “The financial institution that gives you money to fund your mortgage loan is called the Mortgage Lender.”
- The Appraiser: “The person who works independently of the buying and selling party to determine the value of a property is called the Appraiser.”
- The Inspector: “The person who is hired by the potential buyers to determine the structure, safety, and possible defects or damage in a home is called the Inspector.”
- The Closing Attorney: “An attorney that specializes in the real estate law is called the Closing Attorney.”
The Real Estate Process:
The real estate process consists of three steps that are mentioned below:
Step 1: If someone decides to sell a home, then the first thing that he may decide is to hire a listing agent.
Step 2: Then the seller lists his property so that potential buyers can discover it.
Step 3: Finally, a deal is made between the buyer and seller for the property. This step is also called “Closing”.
Real Estate Marketing Strategies:
There are three marketing strategies that real estate agent follows. Here are all three of them:
- Digital Marketing: The real estate agent may create awareness about the real estate through a website, blog, social media, and email; all of these things are a part of “Digital Marketing”.
- Traditional Marketing: The real estate may create awareness about real estate through business cards, direct mails, and local advertising; all of these things are part of “Traditional Marketing”.
- WOM (Word of Mouth) Marketing: It is the most effective strategy for the real estate agent, as the majority of the people choose their real estate agent based on referrals.
The real estate industry is one of the most important industries in our society. There are 4 types of real estate including residential, commercial, industrial, and land. Different people play different roles in the real estate industry. Last but not least, the real estate agent depends on digital marketing, traditional marketing, and WOM marketing to create awareness about the real estate.