A real estate business is a business entity that deals with the buying, selling, management or investment of real estate properties.
There are four types of real estate:
- Residential real estate includes both new construction and resale homes. The most common category is single-family homes. There are also condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational and vacation homes.
- Commercial real estate includes shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are often considered commercial, even though they are used for residences. That’s because they are owned to produce income.
- Industrial real estate includes manufacturing buildings and property, as well as warehouses. The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction, and sales are handled differently.
- Land includes vacant land, working farms, and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly.
Real estate agents are licensed to help sellers sell and buyers buy real estate and are generally licensed to operate, negotiate, and arrange sales under the supervision of a real estate broker. Negotiating and arranging sales can mean showing property, listing a property, filling in contracts, listing agreements and purchase contracts, and other duties.