Residential real estate refers to a real property used for residential purposes. The property should be land with some buildings most preferred by single-family homes. On the other hand, there are commercial real estate properties that consist of land and buildings zoned for business – these are office buildings, apartment buildings, hotels, and more.
However, that doesn’t mean you can’t generate income with residential real estate property. If you own a residential real estate property, you can rent it to earn passive income. If not, you can wait for prices to increase and sell it.
Types of Residential Real Estates
There are different types of residential real estate. Some of these include:
These are the common types of residential real estate properties. They are also referred to as single-family homes based on their own land.
A townhome or townhouse refers to an individually owned, often multi-level dwelling such that they share their exterior walls with the neighboring real estate.
The other type of residential real estate property is multi-family houses. These types of homes include fourplexes and duplexes, which dwell with two to four units, respectively. If the buildings have more than five distinct dwelling units, they are listed in the commercial real estate.
A condominium is also known as a condo. It refers to a private individual residential unit based within other units – like high-rise buildings, a condo complex, or townhomes.
In most cases, a condo is owned by individuals in joint sovereignty with COA – condo owners association – and not with a larger corporation as it is done with apartments.
What is the Difference Between a Residential and Commercial Real Estate?
Depending on how you look at residential and commercial properties, at times, they look similar. However, the significant difference between the two lies in the primary role they play.
Residential Real Estates
These consist of single-family houses, condominiums, land parcels for residential purposes, and multi-family houses. All these are designated for living purposes and non-commercial uses.
However, depending on the local laws, a homeowner can lease the home for short or long-term reasons. Remember that zoning laws prohibit large-scale commercial uses.
Commercial Real Estates
This is a broad asset class with office buildings, apartments, hotels and motels, parking garages, grocery stores, or other public-facing businesses.
On the other hand, warehouses, factories, or other properties with large-scale businesses are referred to as industrial real estate. In some cases, these will fall under commercial real estate.
Again, most commercial real estate have managers who oversee them on behalf of the owner.
What You Should Know About Residential Real Estate
If you are searching for residential real estate, keep in mind that residential and commercial markets operate independently.
However, the demand for residential property doesn’t mirror that for commercial property. In other words, when you invest in residential real estate properties, your strategies will look different depending on the properties.
If you want to understand how the real estate market works in your area, connect with a reliable real estate agent or realtor. Browse online listings and open houses for you to know more about the local market.
Lastly, for you to purchase a residential real estate property, you need a mortgage lender. Look for various available lending options and check for required down payments, interest rates, and proof of income.
Why a Real Estate Agent?
A realtor, broker, or real estate agent refers to a professional who will handle transactions involving real properties. In either way, whether you want to buy or sell your property, you have to consult a real estate agency.
The role of real estate agents is not confined to only selling properties. These professionals also play a significant role in marketing your property, among other things. Most agents work on commission, but the arrangements depend on the real estate agent you will approach. And in most cases, they act as representatives of both sellers and buyers. So, they are not allowed to use the relationship for their own benefit.
Again, real estate agents will only work in specifics zones or States. They also have to ensure the buyer and seller are both comfortable. This is because they work as an independent agency and will be responsible for their actions. Sometimes, they can work independently with a buyer or seller to help close the deal process. That means real estate agents are valuable to both buyers and sellers of real estate properties.
Reasons You Must Hire a Realtor
Allowing You Access Best Properties Sold
One of the reasons to hire a real estate agent is because they access the best homes sold today. You can get all the information available at no cost, and it sometimes allows you to view the property and value before you decide.
It ensures you get the best value for the property.
You Can Get a Better Price Break
The other advantage you get with real estate agents is that you can get a good price break. If you hire a realtor, you’ll get a good value for the property. That ensures you will buy the property at the best price possible.
Helps You With Selling/Buying Process
If you want to buy or sell your property, an excellent real estate agent will walk you through the process. The individual will also show you how you should sell or buy the residential property. You can also get the best deal from them.
Real estate agents know the pros and cons of the whole process. So, they can allow you to get everything in a timely manner. That means you don’t need to get another professional who will handle the tasks for you.
As you can see, there are benefits to hiring the best real estate agent. Allow the professionals to help you make an informed decision before buying or selling residential real estate property. When you use the services of a real estate agent, you will get the best deal to save money when buying a property or garner more than you expect when selling your property.