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Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate (immovable property) is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property.
In recent years, many economists have recognized that the lack of effective real estate laws can be a significant barrier to investment in many developing countries. In most societies, rich or poor, a significant fraction of the total wealth is in the form of land and buildings. In most advanced economies, the main source of capital used by individuals and small companies to purchase and improve land and buildings is mortgages -- bank loans for which the real property itself constitutes collateral. Banks are willing to make such loans at favorable rates in large part because if the borrower does not make payments the lender can foreclose, that is, file a court action that lets them take the property and sell it to get their money back. But in many developing countries there is no effective means by which a lender could foreclose, so the mortgage loan industry as such either does not exist at all or is only available to members of privileged social classes.
In law, the word real means relating to a thing (from Latin res, matter or thing), as distinguished from a person. Thus the law broadly distinguishes between [real property] (land and anything affixed to it) and [personal property] (everything else, e.g., clothing, furniture, money). The conceptual difference was between immovable property, which would transfer title along with the land, and movable property, which a person would retain title to. (The word is not derived from the notion of land having historically been "royal" property. The word royal — and its Spanish cognate real — come from the unrelated Latin word rex, meaning king.)
With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Cities such as Vancouver, British Columbia have experienced remarkable growth in real estate prices in the new millennium. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include:
* Appraisal - Professional valuation services
* Brokerages - Assisting buyers and sellers in transactions
* Development - Improving land for use by adding or replacing buildings
* Property management - Managing a property for its owner(s)
* Real Estate Marketing - Managing the sales side of the property business
* Relocation services - Relocating people or business to different country
Within each field, a business may specialize in a particular type of real estate, such as residential, commercial, or industrial property. In addition, almost all construction business effectively has a connection to real estate.
"Internet Real Estate" is a term coined by the internet investment community relating to the parallel that exists between high quality internet domain names and real-world, prime real estate.
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Buying and Selling Real Estate: Ten Tips
by: Marshall Colt
Real estate is changing hands in ways that make headlines. Whether you’re a buyer or seller, here are some tips to help you make the best deal.
BUYING:
So you want to buy a house? In this market? Are you nuts? Actually, it depends on where you are. You could be very shrewd right now if you pick the right spot, the right pricing trend and bid aggressively. It requires homework, homework, homework.
Example: My wife scoured a market, screening 90+ houses. We eventually found a fixer-upper for $162K. We offered $160K the same morning it was listed. They took it on a handshake. One year later—with no improvements!—we sold it for $208K. For those of you without a calculator, that’s a 30% return on the investment.
And you can do it, too. Here’s how:
1. Pick a growing area. This is essential. Yes, it’s hard to predict economic cycles and which metropolitan areas are going to prosper over the next year or so. However, if you read the business pages regularly, you’ll have a much better idea of where to buy/invest.
2. Learn the market. This is also essential. You’ve got to know what’s out there, what houses are going for and how to spot a bargain from the overpriced. When you find your bargain, you probably won’t have much time before the competition gets wind of it. So you must be ready to make a solid offer right away.
3. Make your offer contingent upon a thorough inspection. There’s nothing worse than buying something with plenty of infrastructure problems. They’ll cost you time, money and aspirin. If you discover only a few problems, try to get the seller to lower the price to counterbalance the flaws in the property. They often will.
4. Finally, recognize that you will not likely land your first prospect. Therefore, be patient and be prepared to keep looking until you find the right house that makes good economic sense for you to purchase.
Follow the above four tips and you’ll do better with your property investment.
SELLING:
What to get the best price for your home? Just follow these six tips:
1. Everything (usually) looks better in brighter light. So let the sun shine in. Open curtains and blinds and turn on lights in all the rooms.
2. Fix up those little things. Oil or WD-40 those squeaky door and window hinges. Tighten any loose door handles. Replace broken shutters, fix leaky faucets, etc.
3. Deodorize! Nothing turns off a potential buyer than a “funny” or unpleasant smell. You’ve heard of the bake bread or cookies in the oven trick…it’s a lot easier to just use plug in deodorizers.
4. One of the easiest things to do is clean the place. Clean in the corners, clean the cabinets, re-grout the kitchen and bathroom sinks, tubs, etc. Wash the baseboards, make the place shine, especially in the entrance way.
5. Get rid of the clutter! Buyers need to envision the home as they would live in it. Anything interfering with that vision works against you in selling your home to them. So divide all your possessions into three groups:
a) things you really need to live in the house,
b) things you don’t really need but want to take with you to your next home, and
c) things you don’t want to take with you and should really toss.
Now, put those things your want to take with you to your next home in a rental storage facility. Hold a garage sale and/or donate everything else to charity. That’ll leave your home looking elegantly simple…the best way to present it to potential buyers.
6. Paint, paint, paint. Virtually every home has some areas that could use a fresh coat of paint. It is one of the most important (i.e., best and inexpensive) investment you can make is maximizing your sale price. Make sure you patch cracks and peeling paint first, though.
Follow the above six tips and you’ll sell your home faster and for a better price that if you didn’t.
About The Author
Marshall Colt holds a real estate sales license in Colorado, with experience in Denver’s prestigious Hilltop area since 1994. For more information, see: http://www.denver-real-estate-homes-for-sale.net.
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