Simply put real estate is the property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. Within the real estate umbrella there are 4 defining categories, knowing the difference may help you to succeed in your real estate investments.
This is probably the most common understanding of real estate, which includes both new construction and resale homes. The most common category is single-family homes. With all the events of 2020, the residential real estate market will continue to surge due to low interest rates and low inventory this market is at a high point. Having a knowledgable real estate agent will help you navigate transactions for residential real estate.
This type of real estate includes shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are often considered commercial, even though they are used for residences. Each of these type of properties or typically purchased in order to generate income allowing us to categorize them as income properties.
Industrial real estate
The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction, and sales are handled differently.
Land
This category of real estate includes vacant land, working farms, and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly.
Currently the residential market is seeing the highest demand for many reasons. One factor is due to the fact that many large companies are allowing employees to continue to work from home leading to families looking for more space to live and work. Inventory is low due to people generally wanting to stay put while markets and the world is volatile.
These factors as well as many others have made the real estate market more competitive than ever. As a real estate agent, I understand how to navigate the complex factors of the market and can help you to make the best choices available to you.