What is Real Estate? Definition and examples

Summary

Real estate involves the buying and selling of physical property, including land, buildings, and natural resources like crops, minerals, or water. It can be categorized into five main types: residential (homes), commercial (business properties), industrial (factories and storage), special purpose (government buildings, parks, museums), and land (vacant or undeveloped land). A real estate professional is known as a realtor or estate agent, depending on the region. To become a realtor in the US, one must complete a pre-licensing course and pass an exam. Real estate investments vary in size, and commercial properties often offer higher returns than residential ones.

Takeaways

• 😀 Real estate refers to physical property, including land, buildings, and rights above and below the land.
• 😀 Real estate is defined as property consisting of land and buildings, along with natural resources like crops, minerals, and water.
• 😀 Personal property such as clothes, boats, and furniture is not considered real estate.
• 😀 Real estate is either land or property permanently attached to land, like buildings.
• 😀 There are five main types of real estate: residential, commercial, industrial, special purpose, and land.
• 😀 Residential real estate includes homes like villas, townhouses, apartments, and single-family homes.
• 😀 Commercial real estate includes business properties such as shops, offices, and car parks, with potentially higher returns than residential properties.
• 😀 Industrial real estate refers to properties used for manufacturing, production, storage, distribution, and research and development.
• 😀 Special purpose real estate includes properties like government buildings, schools, parks, museums, and golf courses.
• 😀 Land real estate includes raw or vacant land, as well as farms, timberland, campsites, and undeveloped land.
• 😀 A realtor (or real estate agent) is someone who works in real estate, and in North America, they need to take a pre-licensing course and pass an exam to become licensed.

Q & A

What is real estate?

Real estate refers to physical property, including land, buildings, underground rights below the land, and air rights above the land. It involves the buying and selling of property.

What are the main types of real estate?

There are five main types of real estate: residential, commercial, industrial, special purpose, and land.

What does residential real estate include?

Residential real estate includes properties where people live, such as country villas, townhouses, apartments, condos, single-family homes, and duplexes.

Can residential real estate be used for commercial or industrial purposes?

No, residential real estate cannot be used for industrial or commercial purposes.

What does commercial real estate refer to?

Commercial real estate refers to business properties like shops, offices, car parks, etc. It is typically larger than residential properties, but the potential returns are often higher.

What types of properties are considered industrial real estate?

Industrial real estate includes properties used for manufacturing, production, storage, distribution, and research and development (R&D).

What falls under the category of special purpose real estate?

Special purpose real estate includes government buildings, schools, religious temples, public parks, libraries, cemeteries, and properties for amusement parks, museums, oil wells, mines, railroads, and golf courses.

What does land in real estate encompass?

Land in real estate includes raw or vacant land that may be purchased for future development, as well as farms, timberland, campsites, hunting, fishing land, or undeveloped land.

Who is a professional in the real estate business?

A professional in the real estate business is known as a realtor or real estate agent in North America, and an estate agent in the UK.

What steps are involved in becoming a realtor in the United States?

To become a realtor in the US, you must complete a pre-licensing course followed by an exam.