March 17, 2016 by William Berman
Real Estate Agencies And How It Relates To Home-Owning And Investment.
A real estate agency like the Remax Omega is a business that arranges the selling, renting, or management of homes, land, and buildings for their owners…
The real estate agents are the people you deal with face to face when buying or selling property. These are the people on the front lines of the real estate market and perform such tasks as showing homes to perspective buyers and negotiating transactions on behalf of their client. Real estate agents often work on a 100% commission basis, their income dependent upon their ability to find property suitable for their clients and closing transactions.
On the other hand a real estate is property comprised of land and the buildings on it as well as the natural resources of the land including uncultivated flora and fauna, farmed crops etc…
Real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of residential real estate include undeveloped land, houses, condominiums and townhomes; examples of commercial real estate are office buildings, warehouses and retail store buildings; and examples of industrial real estate are factories, mines and farms.
Real estate is simply the land and any improvements on it. Renters and leaseholders may have rights to inhabit land or buildings that are considered a part of their personal estate but are not considered real estate.
Home ownership, also known as owner-occupancy, is the most common type of real estate investment in the United States. According to the National Multifamily Housing Council, roughly two-thirds of
residents own their home.
Individuals who are in the market to buy a home to live in often need to borrow money in the form of a mortgage because home prices are generally well above the savings of young people starting a household…
Individuals shopping for a mortgage to invest in real estate in the form of an owner-occupied home are faced with a variety of options. Mortgages can either be fixed-rate or variable-rate. Fixed-rate mortgages generally have higher interest rates than variable-rate mortgages, which can make them more expensive in the short run. Fixed rate loans cost more in the short term because they are protected from future interest rate shocks
Banks publish amortization schedules that show how much of a borrower’s monthly payments go to paying off interest debt versus how much goes to paying off the principle of the loan.
In addition, mortgages can come with sometimes heavy costs, including transaction fees and taxes that are often rolled into the loan itself. Once potential home owners have proven their eligibility and secured a mortgage from a bank, they must complete an additional set of steps to make sure the property is legally for sale and in good condition.
Buying or leasing real estate for commercial purposes is very different from buying a home or even buying residential real estate as an investment. Commercial leases are generally longer than residential leases, and commercial real estate returns are based on their profitability per square foot, unlike structures intended to be private residences. Moreover, lenders may require more money for a down payment on a mortgage for commercial real estate than for a home loan.
Unlike other investments, real estate is dramatically affected by the condition of the immediate area where the property is located, with the exception of a national or global recession, real estate values are affected primarily by local factors, that’s why it’s recommended and really helpful to hire from real estate agencies such as Remax Omega to make buying or selling real estate easier…