What Is Real Estate?

Real estate is real property consisting of the structures and land on it, plus its accompanying natural resources like water, minerals or plants; and its market value including the capital gains from its sale. Real estate investments are a potentially significant source of income for those with money to invest, provided that such investments are made in sound economic times. In determining what the value of a real estate investment is, it is not uncommon for real estate professionals associations to use different techniques to arrive at a value. Some real estate valuation techniques are commonly used. Learn more about buying a home at Rancho Santa Fe real estate.

One way in which real estate valuation is performed is by surveying the area and determining the land's current worth. This is called the "assessment" of the area. This is usually done by submitting a written appraisal to the local government or a real estate agency that has been authorized to undertake this kind of survey. Two main categories of land surveying techniques are "topological" and "survey." The survey technique involves the physical examination of the land and any underlying features, including existing streets, schools, electricity, gas lines, public utilities and other important features.

Another method used for surveying real estate is the topological method. This technique involves the physical examination of the topography of the land. Usually, a professional land surveyor will use elevation data, topographic data and elevations of existing streets, public utilities and other aspects to arrive at a land value. This "ground survey" often is performed when the owner seeks to develop homes on a piece of land, as part of a development plan. It may also be required by some communities when a homeowner wishes to change from a single-family unit to a multi-family residential real estate development. Market your estate with housing market San Diego.

The third technique used in assessing real estate is "surveyed" or "man-made." This technique, which may be employed to locate all types of buildings (whether man-made or natural) on a piece of land, is very similar to the "topological survey." Surveyed buildings are those that were constructed in compliance with local building rules and regulations.

One type of real estate valuation technique is to identify whether a property is "permanently attached" or not. A permanently attached property is one in which the landowner occupies the property and benefits from its sale, while simultaneously being required to render service on the property. Examples of permanently attached to real estate are houses, townhouses, condominiums and mobile homes. The advantage of these types of real estate are that they provide the homeowner with the convenience of living in a home that they have occupied, while benefiting from the sale of their property. The disadvantage is that whenever a house owner decides to sell their home, they lose access to the equity in the structure.

When a real estate includes land, and the portion of the property which is used for businesses is called the "hostile realty," the value of such portion is determined by evaluating what portion of the overall physical plant and machinery does not belong to the business and what portion of the property can be leased for the benefit of the business. While these two types of real estate are usually separated from each other, they are sometimes considered a continuum by brokers. A broker will look at what portion of a piece of land cannot be leased and will try to find a way to make the lease coincide with what part of the property can be used for a business. These two types of real estate are different from "franchised real estate," which is any piece of real estate that has already been developed. Franchise real estate refers to any real estate which is being sold under a franchise agreement. You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Real_property.
 

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