My Students’ Blog

The Reality of Real Estate

By Josue Salgado

Once adulthood rolls around, there will be various unfamiliar, but expected responsibilities that will come with it. Many of them include bills, groceries, and maybe even children expenses. When it comes to these responsibilities, all of them link to one major thing. This is where the electrical, water, and internet bills go towards, where you’ll store the groceries, and the area you consider a roof over your head. The area that is very essential to a stable living environment definitely has to be a home. Securing a home isn’t so easy, though. The process of buying, securing, and making the home yours is a process needed to be learned and is not quick and easy. When it comes to selling, buying, or renting houses, real estate plays a major part in home-buying. Without real estate insight, buying a house might be a much heavier problem, but with it, the process flows a lot easier and helps a lot. Real estate has many factors to it, and going further into detail helps the house-buying process to be a lot easier to understand.

The process of buying, securing, and making the home yours is a process needed to be learned and is not quick and easy.

Real estate is essential in making house-buying decisions, and can make the process run a lot smoother and can even make the result better than you expected. Although real estate is assumed to be selling and buying houses, the reality of it is that real estate is originally buying land. People often think it is only houses, when it really is about the land that the house is on, also known as an improvement. According to Corporate Finance Institute’s article, Real Estate, There are four major types that a real estate agent helps with. First, we have land. This represents the pure land areas that real estate agents work with. This includes only land, and can stretch a great distance, even for many acres. Second, there’s residential. Residential focuses on areas where people want to live. Residential is very common when buying a home. This will most likely be recommended if you were buying a home for you and possibly a family. These agents provide houses, apartments, and many other living arrangements. Commercial real estate is when businesses come into play. This is where local grocery stores can be located, and even your favorite shopping mall. Summarized, it is the area where you will find businesses selling and promoting. Finally, industrial real estate is used by businesses who work on transportation, construction, and much more.

A real estate agent helps you find anything you need when it comes to finding an area to settle. They are your number one sources of support in this business. Based on the article What is Real Estate and How Does It Work?, there are various agents out there, and they are always there to assist you and help you find the perfect area that fits your needs and your current situation. There are many factors when it comes to becoming a real estate agent. It depends on where you are and how you get there. For example, Raphael Kirby, a real estate agent under Keller Williams Realty, works in one of the most populous cities in the world, Atlanta, Georgia. With it being a large city, he explained, “I would say it’s competitive, but it is fun.” He later adds, “A lot of people want to do it, so it is very over-saturated with agents. So, the competition isn’t only yourself and your goals, but other agents who want to do the same business as you.”  In larger cities, there are a vast majority of agents who try to find people to help as soon as they can. Real estate also has hefty progress of becoming an agent, with him explaining that there is a state and federal test that you must receive over 75 out of 150 questions answered correctly in order to receive a license. He’s stated that many people have wanted to see his license, which also relates to the article Real Estate Questions, in which they state that many people must ask in order to make sure they have their qualifications.

Real estate can be a tough process, though, even for the agents. They do earn a portion of a house they sell, which according to What’s a Real Estate Agent Worth?, is called a commission. Alejandra Salgado, from the same realty group, resides in the city of Bellevue, Washington. She explained that there was also a lot of competition, and little inventory, such as a shortage of houses, makes it harder. For example, she states, “There would sometimes be around twenty offers on one piece of real property.” Based on the article, Urban v.s. Rural: Where should you buy?, There is a huge difference when it comes to larger areas. For example, Atlanta is a lot more populated than Bellevue, making the competition harder, and even makes prices soar, depending on the offers. Both of the agents did relate to one thing, which is what they also thought was the easiest. They both agreed that building a relationship/relating to the customer is one of the most important and one of the easiest things to do. This is why realtors are considered as one of the most important assets to buying a house. They assist you in any way possible, whether it’s price range, or even what your current situation is.

Real estate is highly misunderstood to be just houses. In reality, real estate is securing land. The land can be for the four major roles. Land, which is pure land, nothing special. Residential, which is the most common when buying a home. This helps you find and secure a home for yourself. Industrial, which helps industrial businesses settle and create. Finally, Commercial, where you can find local stores, and various other businesses. Real estate also varies where you are, where the more urban find it a bit more difficult to set offers and also prices are a bit higher compared to rural areas. But at the end of the day, realtors, and real estate is there to help you find what you need. She states that it is hard to stay motivated at times, but, at the end of the day, she’s excited to help others. She explains that it’s hard to stay self-employed. The commission rates do go towards the house, but a percentage of the offer goes to the agent.

Remember that real estate is there to help you buy what you need. It teaches people that the house-buying process can be a lot easier, and learning about it earlier in life can help make the process easier for future references. Don’t be afraid to learn real estate at a young age so that it helps you for when you need to buy that home you’ve always wanted.