| Real estate management is primarily engaged in the | | | | The third field, real estate development, makes |
| practice of handling, supervising and controlling an | | | | improvements of some kind to real property, |
| immovable proprietary. Purchasing real estate requires | | | | thereby increasing its value. There are two major |
| a significant investment, and each parcel of land has | | | | categories of real estate development activity: land |
| unique characteristics, so the real estate | | | | development and building development (also known |
| management industry has evolved into several fields. | | | | as project development). |
| Real estate, or immovable property, is a legal term | | | | Land development typically is the acquisition of raw |
| that encompasses land along with anything | | | | land (real property with no improvements or |
| permanently affixed to the land, such as buildings. | | | | infrastructure) and improving it with utility |
| Real estate is often considered synonymous with real | | | | connections, roads, earth grading, covenants, and |
| property, as contrasted to personal property. | | | | entitlements. Once these improvements have been |
| However, for technical purposes, some people prefer | | | | made to the raw land, it is typically subdivided and |
| to distinguish real estate, referring to the land and | | | | sold piecemeal at a profit to building developers or |
| fixtures themselves, from real property, referring to | | | | individuals. |
| ownership rights over real estate. | | | | Building development is the acquisition of raw land, |
| With the development of private property | | | | improved land, and/or property that could be |
| ownership, real estate has become a major area of | | | | redeveloped in order to construct building projects. |
| business. This paved the way to the birth of real | | | | The buildings are then sold entirely or in part to |
| estate management. Also called real estate | | | | others (usually for a significant profit), or retained as |
| development industry, it is primarily engaged in the | | | | assets to produce cash flow via rents and other |
| practice of handling, supervising and controlling an | | | | means. |
| immovable property. | | | | The fourth, property management, pertains to the |
| Purchasing real estate requires a significant | | | | processes applied to maximize returns by effective |
| investment, and each parcel of land has unique | | | | administration of property-one of the major assets |
| characteristics, so the real estate management | | | | of most organizations. It also comprises the disciplines |
| industry has evolved into several distinct fields. | | | | implemented on property rules and rental policies. |
| Among these fields are appraisal, brokerages, | | | | And the fifth and last field, relocation services, deals |
| property management, and relocation services. | | | | with relocating people or business to different |
| The first field, real estate appraisal, is a service | | | | countries. Within each field, a business may specialize |
| performed by an appraiser who develops an opinion | | | | in a particular type of real estate, such as residential, |
| of value based upon the highest and best use of real | | | | commercial, or industrial property. In addition, almost |
| property. The highest and best use is that use which | | | | all construction business effectively has a connection |
| produces the highest possible value for the property. | | | | to real estate. |
| This use must be profitable and probable. Also of | | | | No matter what field of real estate management you |
| importance is the definition of the type of value | | | | are in, maximizing income can be actualized through |
| being developed and this must be included in the | | | | reporting complete and accurate income/expenses |
| appraisal. | | | | each month, effectively placing capital improvement |
| The second field, real estate brokerage, is a party or | | | | into service, accurate budget forecasting, balance |
| an agency that acts as an intermediary between | | | | sheet management and the day-to-day support of |
| sellers and buyers of real estate and attempts to | | | | building marketing teams. |
| find sellers who wish to sell and buyers who wish to | | | | The unequivocal delivery of these kinds of services |
| buy. It assists sellers in marketing their property and | | | | would lead to fully satisfied costumers-bringing more |
| selling it for the highest possible price under the best | | | | income and credibility. |
| terms and buyers in the acquisition of a property. | | | | Copyright 2007 Ismael D. |