Overview of the Real Estate Industry

Let's investigate how the real estate industry functions as well as the various occupations and careers that are available in it. The real estate sector can be broken down into a few distinct sub-industries, which are as follows:

  1. Development
  2. Sales and marketing
  3. Brokerage
  4. Property management
  5. Lending
  6. Professional services (law, accounting, etc.)

Let's take a closer look at each of these six subfields of the industry, shall we?

Development

The process of real estate development begins with the purchase of undeveloped property and continues with the rezoning of that land, the construction and renovation of structures, and finally the sale or lease of the completed product to end users. In order to turn a profit, developers must first take on the risk of funding a project before they can add value to the land (by constructing buildings or making other changes, for example). The "primary market" can be regarded as the generation of new inventory, and development companies are responsible for the creation of new products.

Sales and marketing

Together with developers, sales and marketing companies seek to sell the buildings and units that are created by the construction industry. These companies earn a commission for developing all of the marketing material and using their sales agents to sell the inventory of finished units. In addition, the commission is earned for each completed item that is sold. These companies focus mostly on producing new units.

Brokerage

A real estate brokerage is a company that employs a team of real estate agents (realtors) that help organize a transaction between the buyers and sellers of property. These real estate agents are also known as real estate brokers. They are responsible for representing either party and assisting them in concluding a purchase or sale on the most favorable terms feasible.

Property management

Property management companies are there to assist building owners in renting out their available apartments or rooms. As part of their duties, they are responsible for managing tenants, collecting rent, showing apartments, addressing maintenance issues, and performing repairs. They charge property owners a fee, which is typically expressed as a percentage of the monthly rent.

Real estate lending

Lenders play a significant part in the real estate market because almost all buildings and projects rely on leverage, also known as debt, to finance their operations. Lenders can come in the form of banks, credit unions, private lenders, or even entities run by the government.

Professional services

There are many different types of professionals who operate in the real estate sector and contribute to its overall functionality. Aside from the professions that have already been mentioned, the most typical examples include attorneys, accountants, interior designers, stagers, general contractors, construction workers, and craftsmen.

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