Real Estate is a legal term related to a land or all the fixtures of land including buildings and other improvements.
The words “Real Estate” was first used in the year 1666 according to the historical records. The word “Real” comes from “Royal” which then derives from the Latin root for King. Hundreds of years ago, all the land was owned by the Royal family and they opposed the normal citizens being land owner.
What is a Real Estate?
A person or a firm licensed to consult, transact the sale or lease of a property on behalf of its owner. Also brings the buyer and seller together and assist them in negotiating the contracts between them.
Real Estate is often called as real property, sometimes called realty. 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. Specialists are often called on to valuate real estate, facilitate transactions and for risk management.
More Information on Residential Real Estate Property
Different types of Real Estates :
Real estate is broken down into a variety of different areas of businesses as Appraisal, Brokerages, Property management, Real estate marketing, Real estate investing, Corporate Real Estate, Residential Real Estate and Commercial Real Estate.
Details of Real Estate Projects
Real Estate risk management and evaluation is a major part of any type of real estate business. Risk occurs in different ways at every stage of investment.
The common steps to be taken to evaluate a risk are mentioned below:
- Verifying ownership and purchase title insurance.
- Obtain the survey of the boundaries from the licensed surveyors.
- Complete the full verification of the real estate property before invest and regular maintenance is required.
- Obtain third party appraisals and perform cash flow.
- Maintain sufficient cash reserve to cover the cost of maintenance.
- Obtain a clear title deed.
- Screen potential tenants carefully and also hire experienced property managers.
- Ensure that the real estate property can generate necessary cash flow.