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