The Four Main Types of Real Estate.

• Residential Real Estate
Residential real estate includes both new construction and resale homes. The most common category is single-family homes, but there are also condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational homes,and vacation homes.
• Commercial Real Estate
Commercial real estate includes shopping centers and strip malls, medical buildings, educational buildings, hotels, and offices. Apartment buildings are often considered commercial, even though they’re used for residences, because they’re owned to produce income.
• Industrial Real Estate
Industrial real estate includes manufacturing buildings and property, as well as warehouses. The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered to be commercial real estate. The classification is important because zoning, construction, and sales can be handled differently for this type of property.
• Pieces of Land
Land includes vacant lots, working farms, and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly.

Investing in Real Estate
Anyone who buys or sells a home engages in real estate investing, and this  meansconsidering several factors. Will the house rise in value while you live in it? How will future interest rates and taxes affect you if you get a 6 mortgage? Some people do so well investing in their own homes that they want to buy and sell homes as a business. You might flip a house, buying it to improve it and then sell it. Many people own several homes and rent them out. Others use Airbnb or a
similar service as a convenient way to rent out all or part of their homes.

Reading the Real Estate Market

Statistics about new home construction are important leading economic indicators. They can give you a heads-up on the future of the housing market.

How Real Estate Works

Real estate involves numerous facets, because it doesn’t simply exist. It can segue from unimproved to improved. It can be purchased or sold. It might be owned by a government, a corporate entity, or by a private party. But certain components can have a direct impact on the economy: consistent improvement of land, and the individual and entities that facilitate those transfers of ownership.

Construction of New Buildings

New home building is a critical category. It includes the construction of singlefamily homes, townhouses, and condominiums. The National Association of Home
Builders (NAHB) provides monthly data on home sales and average prices. The data on new home sales is a leading economic indicator. It takes four months to
establish a trend for new houses sold.
Real Estate Agents
Real estate agents assist individuals, businesses, and investors in buying and selling properties. The industry is typically divided up into specialties. Sellers’ or listing agents help find buyers through the Multiple Listing Service or their professional contacts. They price your property, using listings of recently sold homes known as “comparables,” or “comps,” because they’re similar to yours. They can help you spruce up your property so it looks its best to potential buyers. They assist in negotiations with the buyer or the buyer’s agent to get the highest price possible. Buyers’ agents provide similar services for the home purchaser. They know thelocal market, so they can  find a property that meets your most important criteria. They also compare prices, a process that’s referred to as “doing comps.” This helps them guide you to areas that are affordable. Buyers’ agents negotiate for you, pointing out reasons why the seller should accept a lower price. They can help ith the legalities of the process, including title search, inspection, and financing. We’ve all heard the old mantra that real estate is all about “location, location, location.” Let’s take a look at what location is, and how it fits into appraising.
What is location?
The Dictionary of Real Estate Appraisal 6th Edition defines location as: “The relative position of a property to competitive properties and other value influences in its market area; the time-distance relationships, or linkages, between a property or neighborhood and all other possible origins and destinations of people going to or coming from the property or neighborhood.”
What accounts for the differences in price?
Location. Homes within the individual villages are generally similar to each other, with consistent price ranges. The location of the village and the subject’s location within its village are paramount criteria in an appraiser’s search for comparables. Of course, size and amenities play a role, as well as pools or lots that could accommodate a pool, but location is where it all starts. Research concerns include: Does the specific village experience positive or negative “influences” such as proximity to shopping or the many varied golf courses? And then, is the property itself within that village located on a water body or a golf fairway, or are there negative influences such as traffic noise? An appraiser not familiar with The Villages could easily over- or under-value a property by mixing villages. For example, let’s say the subject is a 3-bedroom, 2- bath, 2,000 square foot home with a two car garage on a typical sized lot. It would not be ard to find hundreds of homes with similar physica characteristics nearby; however, some might be located in the “wrong” village. Remember the
characteristics of each village tend to determine what buyers are willing to pay. A knowledgeable or well-informed buyer will not pay $600,000 for a home
surrounded by almost identical homes for which everyone else paid $300,000. As appraisers, job is to figure out what the typical buyer would pay for a property similar to the subject, based on what other knowledgeable buyers have paid for similar properties, and location is one of the biggest contributing factors in the decision process.
What Is an Appraiser?
The term appraiser refers to a professional who determines the market value of an asset, notably in the real estate industry. An appraiser is expected to act
independently of the buying and selling parties in a transaction. Their opinion about the real and fair value of an appraised asset must be unbiased by using
observations as well as relevant statistics, facts, and other information. Depending on the circumstances, the appraiser presents their findings in a written or verbal appraisal.
How Appraisers Work
Appraisers attempt to attach a dollar value to items such as jewelry, art, gems, and family heirlooms. But their services are mainly used to determine real
estate values. Investors generally hold an appraiser’s work in high regard because of the lack of liquidity associated with assets such as these items.
All appraisers are expected to be alert and take notice of every aspect and characteristic that affects the value of an asset. In the case of real estate, for
instance, this may include assessing things like the overall noise levels of the area, the proximity of the property to sources of recurring loud disturbances such as an airport or a railroad line, as well as the view offered by the property. Obstructions by neighboring buildings may also affect the value of a property and the general condition of the building and grounds will also be taken into consideration. After collecting and documenting the information from their findings of the asset, appraisers may then use that information to compare the asset to other similar pieces of property that were sold recently. They may also take prior appraisals of the same property into account. Once compiled, an appraisal may be presented either in writing or verbally to the client. People and businesses generally seek out the services of appraisers when they simply wish to get a value on a piece of property or when they want to sell an asset. Appraisals may be a requirement before an asset is sold—as is the case with real estate—and for regular evaluations by municipalities for property taxes.
Earazi has established a deserved reputation throughout Pakistan for reliability and for customer satisfaction. We wish to extend our thanks to all those valued officials and private clients whose continued patronage has allowed us to expand our business so successfully, and we welcome all new clients wishing to take advantage of our unique range of services. We have a highly trained team of experts with our previous experience behind them.

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