Real Estate business is known as milestone of entire businesses. Real Estate business carries GDP as well as economic growth of a country. Real Estate is entire sea for opportunities to engineers and development of business for builders. All single and multifamily structures are include in Real Estate. Let ensures some steps before moving ahead.
Table of Contents
Establishing Your Business
Before you think to expand your business start thinking to establish it. This establishment will help you to become a well-known company. More interaction with clients makes your business better settled. Real Estate business holders performs an important role in growth of that nation.
Real Estate has single family and multifamily structures. Real Estate business have following categories.
- Single Family or single story buildings.
- Domestic Buildings
- Multi family or multi story buildings.
- House boats.
Apartments have different size and designs like if you want a studio apartment than it will be one room with entire facilities. You can check rental market trends in Philadelphia, Pennsylvania to see what types of apartments you can choose from. House boats are known as the temporary house on boats. Domestic buildings includes buildings using for industrial purpose.
Units used in Real Estate business
Major units that are used in Real estate are square meter and square feet. Square feet is known as that particular area enclosed in between the walls.
For bigger structures like chawls, haveli and villas. The unit used to measure these structure are acre, quilla and marla. Whole industrial buildings mainly measures in square yards.
Sales and Marketing
Marketing line in Real Estate business become a better platform to earn more profit. Prices of lands increasing day by day and this price raise also raise the Real Estate builders to build another structures for future purpose. Chances of your profit becomes more when you purchase at low cost and give back to people at multiple cost. This process helps builders to establish their company and expand it at better platform.
There are some merits and demerits of Real Estates that are below:
- It can be easy to understand
At first when you start investing in business it becomes irritating. But when time passes, after few time Real Estate business comes to understand. You will know basic knowledge of exchanging empowerments.
Real Estate business is improvable as time spends. Real Estate business will improve your dealing skills and communication skills. May be you are the one who don’t know anything about it but after some passage of time you will start improve and will start understand very well.
- Hedge On Inflation
Real Estate is directly proportional to Inflation. As inflation rise up house rent and charges also goes us. As the rent and leasing rates increased every year makes Real Estate to a hedge on inflation.
- Inefficient market of properties
Real Estate business contains counting of land and builders. Its and emerging market of buildings that will never going to end. Precious lands makes this business more popular now days.
- Real Estate can be Financed
In spite of other business who needs a better start ups to become a famous company, Real Estate is a business where you can find financer for yourself and your business. It will help you to expand your business and also helps in establishment.
There are some demerits also in Real Estate business listed below:
- Higher Transaction Cost
Real Estate business always needs higher transaction cost. Low transaction cost means low stock market and shares. And on other hands Real Estate needs cost to buy shares and to hold stock market. Low investments or transaction cost never can be in better profit.
- Less Liquidity
There are some problems out there when properties doesn’t getting sold. Sometime properties sold when there is great loss in price of properties. It becomes difficult to those builders who have leased land and they kept it for years. Low buyers will also cause bank’s threat too.
- Managements and Maintenance required
When you make any structure than you have to keep it safe as per safety measurements. As per rules you have to maintain that structure and also took care of its being collapsed. Real Estate business also needs management while dealing with taxes, insurance and maintenance fees.
- Probability of loss
Real Estate is probably like business with no guarantee. Whether it may be great profit when your properties sold out. And also there will be great loss when no property sales.
Real estate becomes a wide network of building structures. People selling and purchasing properties and manmade structures at reliable cost.
Real Estate Agents
Peoples that includes in Real Estate business are known as Real Estate agents often known as Real Estate Broker. These agents create interface between buyer and builders. Agents often used for spreading and establishment of business. They charge their cost as per value price of properties.
There are few services that can a broker will provide to you:
- Market Analysis
Broker will give you wide and vast information regarding property and its price. Broker will also provide comparable cost with other properties. Broker will keep sight you different properties until you not choose one of your choice.
- Price Opinion
Broker will provide you whole information regarding price of the property and its potential selling price of property.
Broker will show the property to each buyers until it get sold while broker licensed as appraiser.
- Documents preparation
Broker will provide you whole information regarding documents that need while you are going to sell or purchase a property. Documents must be complete while you buy and sell property.
Contracts in Real Estate Business
- Exclusive Agency Only an authorized or well-known agency have rights to sell or purchase properties and structures, if there in compensation made by another broker, this limits the exposure of property.
- Rights To Sell
The broker have given rights to sell properties as per its potential cost. There broker commission will be charged.
- Open Listing
Open listing is known as the document which contains start and end date of agreement also potential price of property.