Real Estate Management

Real estate management is primarily engaged in thea property. The third field, real estate development,
practice of handling, supervising and controlling anmakes improvements of some kind to real property,
immovable proprietary. Purchasing real estate requiresthereby increasing its value. There are two major
a significant investment, and each parcel of land hascategories of real estate development activity: land
unique characteristics, so the real estatedevelopment and building development (also known
management industry has evolved into several fields.as project development). Land development typically
Real estate, or immovable property, is a legal termis the acquisition of raw land (real property with no
that encompasses land along with anythingimprovements or infrastructure) and improving it with
permanently affixed to the land, such as buildings.utility connections, roads, earth grading, covenants,
Real estate is often considered synonymous with realand entitlements. Once these improvements have
property, as contrasted to personal property.been made to the raw land, it is typically subdivided
However, for technical purposes, some people preferand sold piecemeal at a profit to building developers
to distinguish real estate, referring to the land andor individuals. Building development is the acquisition of
fixtures themselves, from real property, referring toraw land, improved land, and/or property that could
ownership rights over real estate. With thebe redeveloped in order to construct building
development of private property ownership, realprojects. The buildings are then sold entirely or in part
estate has become a major area of business. Thisto others (usually for a significant profit), or retained
paved the way to the birth of real estateas assets to produce cash flow via rents and other
management. Also called real estate developmentmeans. The fourth, property management, pertains
industry, it is primarily engaged in the practice ofto the processes applied to maximize returns by
handling, supervising and controlling an immovableeffective administration of property-one of the major
property. Purchasing real estate requires a significantassets of most organizations. It also comprises the
investment, and each parcel of land has uniquedisciplines implemented on property rules and rental
characteristics, so the real estate managementpolicies. And the fifth and last field, relocation
industry has evolved into several distinct fields.services, deals with relocating people or business to
Among these fields are appraisal, brokerages,different countries. Within each field, a business may
property management, and relocation services. Thespecialize in a particular type of real estate, such as
first field, real estate appraisal, is a service performedresidential, commercial, or industrial property. In
by an appraiser who develops an opinion of valueaddition, almost all construction business effectively
based upon the highest and best use of realhas a connection to real estate. No matter what field
property. The highest and best use is that use whichof real estate management you are in, maximizing
produces the highest possible value for the property.income can be actualized through reporting complete
This use must be profitable and probable. Also ofand accurate income/expenses each month,
importance is the definition of the type of valueeffectively placing capital improvement into service,
being developed and this must be included in theaccurate budget forecasting, balance sheet
appraisal. The second field, real estate brokerage, is amanagement and the day-to-day support of building
party or an agency that acts as an intermediarymarketing teams. The unequivocal delivery of these
between sellers and buyers of real estate andkinds of services would lead to fully satisfied
attempts to find sellers who wish to sell and buyerscostumers-bringing more income and credibility.
who wish to buy. It assists sellers in marketing theirCopyright 2007 Ismael D. Tabije
property and selling it for the highest possible priceMore articles from this pro: D.
under the best terms and buyers in the acquisition of