What Is Real Estate?

Real estate refers to land and the structures — such as houses, office buildings,

apartment complexes or strip centers — that sit on it. Structures can be above

ground or underground, and they can include parking lots, storage facilities and

sewage systems. Real property is considered a fixed asset that provides income

through rental and sale transactions.

One of the most common types of real estate is residential, which includes both new

construction and resale homes. The most popular category is single-family houses,

but the term also encompasses condominiums, co-ops, townhouses and duplexes.

Investors often use real estate to make money through house flipping, which

involves purchasing a home for a low price and then selling it for a higher amount.

Commercial real estate refers to properties used for business purposes. This can

include shopping centers and strip malls, medical and educational buildings, hotels,

and offices. It may also include apartment buildings, which are sometimes

considered commercial even though they’re used for residences because they

generate income for their owners. Industrial real estate comprises manufacturing

buildings and warehouses that are used for research, production, and distribution of

products. Land that is leased or sold for agricultural purposes is also considered part

of this type of real estate.

Many real estate professionals rely on marketing strategies to find buyers and

sellers. For example, they may hold open houses or advertise in newspapers and

online. Some also utilize sphere of influence (SOI) strategies, which focus on

generating leads through people in an agent’s immediate circle of friends, family and

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In recent years, there has been a shift away from outbound marketing methods such

as cold calling and direct mailers to inbound tactics like blogging, podcasting and

social media networking. These tactics help agents attract qualified clients to their

businesses without sacrificing the personal relationships they need to succeed.

A real estate broker is a licensed professional who arranges real estate transactions

and acts as the seller’s or buyer’s representative. Brokers are experts in the field

and can assist their clients with a variety of tasks, such as finding financing, making

sales offers, and closing deals.


The real estate industry plays a vital role in the economy. It is an important source

of jobs, and the construction of new buildings contributes to the gross domestic

product. In addition, it is an important source of tax revenue for local governments.

The real estate market can be volatile, and investors must carefully analyze the risks

involved before investing in a particular property. The value of real estate depends

on the location and the condition of the property. A well-maintained property will

increase in value over time, while a dilapidated or poorly maintained property will

decrease in value. In some cases, the cost of maintaining a property can outweigh

the initial investment. This is why it’s important to choose a well-maintained,

reputable company to manage your property. A good company will ensure that your

property is safe, secure and up to code.