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