Real estateTopic: Real Estate Value
Real estate is a term that refers to land itself or property that is fixed permanently to land. The latter category may entail buildings and any other immovable structures on specific locations. More often than not, most people tend to replace the term real estate with real property as they both refer to the smear things. It should be noted that in law, there is a sharp distinction between personal property and real property in that the former is attached to a person such as clothing, furniture or money. (Mifflin, 2008) However, real property refers to land and those things affixed to it. In all cases, assets considered in real estate are immovable. Structure of this industry- markets, products, components, manufacturing processes and technologies that define the industry The real estate industry has tremendously evolved over the past few years. This is largely because of the growth f private property ownership. This has led to the development of several fields within the industry that cater to the unique characteristics of different pieces of land and they are as follows; * Corporate real estate * Relocation services * Real estate investing * Real estate marketing * Property management * Development
However, in the nineteen nineties, the industry began embracing technology and more and more people began gaining information about it. Besides that, its systems and mechanisms became clearer to more people and this pulled investors into the industry. In fact, the level of transparency was what made people get interested because it was marketed in such a manner that people could sell whatever the market was looking for. It should be noted that in the past, the real estate sector was seen as an exclusive reserve for local developers. However, this perception began changing as more and more people began entering into the industry/ there are also other indications that the real estate industry has plummeted over the past few years and this was largely because there are foreign offices that have been set up by US real estate companies. Certain residential real estate companies operate through non traditional business models and these are the companies are making it in the sector. For instance, there are'; * Full service discount companies * Fee for service firms * Virtual Office Website companies Full service discount companies; In this kind of arrangement, the company under consideration may offer a service a price lower than the traditional rates. In other situations, this may be combined with the use of rebates to home owners in states where rebates are legal. Fee for service firms are those ones that have the ability to offer clients different services at a flat fee. Usually, this is when consumers only require the listing service. If other brokerage services are needed, then they must be purchased by the firm. Lastly, Virtual Office Companies are those ones that register their clients online and may offer the client an access to their MLS database so that they can locate the property that they may be interested in. the latter firms can charge lower commissions that traditional models. (Turtherfrod et al, 2005) Firms that have made it in the industry, may opt to combine a number of the latter strategy, this is because its model may posses its own advantages and therefore combining them will boost and firms position. An example of such a market leader is Cushman and Wakefield. This company poses one hundred and seventy five offices al over the world. It has made a mark in real estate by combining both traditional services and non traditional ones. Major trends of the industry and prediction of future structure of firms' relative positions A summary of the history of the real estate industry can be seen in the latter table. This is a summary of the percent change of median houses within the United States over the past 15 years. It should be noted that no data is available for 2008 as these are yet to analyzed Year Median Home Price ($) % Change 1991 153, 925 -0.45 1992 153, 235 0.28 1993 153, 632 0.99 1994 155, 145 0.15 1995 155, 365 1.72 1996 158, 029 2.63 1997 162, 168 3.53 1998 167, 881 1.89 1999 171, 031 0.83 2000 172, 427 3.21 2001 177, 939 6.01 2002 188, 634 5.28 2003 198, 557 7.11 2004 212, 655 8.18 2005 230, 059 9.00 2006 233, 409 7.33 2007 198, 405 -12.59 (NAR, 2007) The residential real estate, much like other real estate sectors heavily relied on hedge funds. This meant that prices within the real estate market had gone up based on assets that did not actually exists i.e. hedges and other derivatives. Consequently, estimates of possible profitability were based on superficially created markets that were not founded on solid investments. Additionally, hedge funds brought a lot of problems because there were numerous real estate loans that were floated in the market and sold to investors in secondary markets that even emanated from different parts of the world. Eventually, this led to protection of lenders who were protected in the event that the primary borrowers choose to default payments. However, this meant that there was a substantial amount of vulnerability to economic downturns and that this is exactly what happened to the industry. The market was boggled down by excessive lending and liquidity levels could not sustain this excessive lending thus leading to the crisis. (Levitt & Syverson, 2005) Analysis of one firm in the industry The company chooses for analysis is known as USAA Real estate Company. This company actively advices its consumers about managing properties for both tenants and property owners. Additionally, it looks into the various methodologies of implementing investment opportunities. Besides that, the latter firm is highly responsible for assisting clients to sell, buy, finance, lease or even manage assets at any one time. The following activities are carried out by this firm: strategic planning and research, asset management, suite selection, space location assistance, valuation advice, moving services and many others. (Crokett, 2008) The company largely operates under the principle of portfolio analysis. Prior to the mortgage crisis and economic recession, the company had increased its market share to fourteen percent. This was conducted through expansion of its portfolio base into certain unconventional sectors such as resorts and hotels. By not just relying on income from residential area, then the latter company was bale to remain steady and still exists today even after the biting recession. Additionally, this company has maintained a sound market position owing to its increased utilization of the World Wide Web. In most times, companies that gain competitive advantage are those ones that mange to communicate effectively with their clients. Through internet services, this company easily schedules its appointments, follows through on proceedings of transaction and manages to seal the deal thanks to the Internet. (Hahn et al, 2008) Lastly, the company has taken advantage of certain business models that are in high demand toady. For instance, it has a special package known as the build to suit service in which special clients approach the company then gets to inform the company about the kind of property that they require and this property is then built for their needs. They have also invested into co-partnering ventures with other categories of investors both within the local and international arena. Conclusion The real estate industry is one most volatile yet profitable industries in the country. Consequently, leading players must be highly flexible. They must be ready to embrace unconventional traditional models. They must also be in a position to understand that the best bet against the recession is through innovative technologies and effective product offerings.
by Michelle Robert
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Commercial real estate agnets usually make more than residential BUT there is a long wait for your first commission the commissions are few and far between but they are larger.
Can you contact the local tnowig agency and find out when they auction the cars impounded by officers from illegals?I hear they hold weekly auctions and the cars are being sold for the cost of the impound fees? usually about $$160.00 plus taxes of course.it is called impounds from unlicensed drivers .they cant afford to get them out -last week cadillac escalade bmw ..$400.00 -free and clear.
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