Real Estate

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Real Estate

Date Added: October 08, 2008 04:36:44 AM
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Category: General
Market today is very volatile and many people blame it on the downfall in real estate prices. "What is this real estate and why is it of such significance?" is what many people are left wondering. Real estate is land including any property on it which is immovable or stationary. The word Real in real estate is derived from Latin (in Latin "Real" means "Thing").

Real estate has gained significance over the years because of its huge investment requirement. Any person who wants to buy a property has to either have huge finances internally or he should be able to arrange the finances externally from institutions that are willing and able to lend him money. With the growth in the real estate market the need for specialized agency to facilitate the process of buying and selling of the property has been felt. Here are some of the facilitators of real estate business:

Appraisers: These are the people who find out the value of the property that you either intend to buy or sell. There services many also be called upon when the lender needs to decide how much of loan can be given on the property.

Brokers: These are the people who bring the buyer and the seller of property together.

Developers: These people make additions to the land so as to increase its value. For example a developer may build an apartment on the land thereby increasing its value.

Property Managers: These people manage the property for its owner. There services are varied and include security, improvements in the property, maintenance, etc.

Relocation Service Providers: These people provide service for people who want to relocate from one place to another.

The persons providing these services will vary for residential, commercial, or industrial property.

In buying and/or selling of property the real estate broker plays a very important role. The broker of the buyer and the seller is usually not the same person. The seller’s broker has to handle all the logistics right from advertising to completion of sale of the property. The buyer may or may not decide to appoint a broker. In case he does not appoint a broker then he will have to directly deal with the seller or the broker appointed by the seller on his behalf. It is also very important for a person to know what will be the incidence of tax on him/her, if he/she decides to buy/sell the property. The incidence of tax may vary depending on the state that you intend to purchase/sell the property in.

In recent times there has been a drastic fall in the prices of property. This is primarily because of either default in payment of debt taken to buy the property or due to foreclosure of existing loans. Today the default and the foreclosure rates are one of the highest and because of this there is glut of people who want to sell their property. As a result of this oversupply in the market the prices of come down drastically. Therefore it is advisable not to over borrow and to hold on to the property till the prices stabilize.
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