Back To Basics - Real Estate

The Concept of Real Estate

Real estate refers to a property. It includes not only the land but also the hard structures like a building. It even covers crops, livestock, water body, flora, fauna and the underground materials like minerals of the properly. This term is mostly used in the property market where it refers to the lands and the buildings. It is used for large covered structures used for the residential, commercial, factory or industrial purposes. In a larger sense, it refers to the whole high rise buildings, retail stores, warehouses, industrial units, factories, farms and mines. builders redditch offer different types of residential, commercial and industrial buildings. These units are available for both sale and rent.

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What Is a Real Estate Agent?

A real estate agent arranges buying and selling of properties. The professional works as a go-between for the buyers and sellers of residential, commercial and industrial properties. The deal may involve buying and selling or renting and letting. The deal may be for a room, house, land, farmland, factory, part of the building or whole building. It may be for one unit or multiple units. The agents charge commissions for their services. They receive their commission only when the deal is finalised and a transaction takes place. In small real estate deals, there may be only a single agent involved in the process. In a large deal and even in some small deals, more than one real estate agent may be involved in the process - one working for the buyer and another working for the seller. When working for the prospective buyer or renter, the agent helps find the right property as specified by the client. If working for the property owner, the agent helps find the buyer or renter through listing, networking and advertisements.

Is Investing in Property a Worthwhile Venture?

It depends on many factors whether a property investor will be able to not only recover the invested amount but also make a profit at the time of reselling the property. The property must be located at the right location. Profit can be made only if the value of the property appreciates over time. Most property prices in the long term generally appreciate in major populated areas. The level of increase in the property price cannot be predicted accurately. A lot depends on government policies and how the local area develops over time. Entry of new businesses, an educational institution or a large industry creates a demand for new residential units. New businesses create the demand for commercial buildings. The real estate market can go down for various reasons including lower demand, crashing of inflated real estate prices, currency value drop, closure of businesses and others.

Would Getting an Extension on the Current Home Be Profitable in the Long Term?

It can be profitable in the long term if the extension increases the functionality of the home. It depends on how the property is priced after adding the extension. The addition helps add more useful area to the existing unit. It creates a good impression on the prospective property buyers and renters.