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