Real Estate

Definition of Real estate

Real estate is a legal term that usually means land and anything permanently affixed to the land. Tax laws of different jurisdictions may interpret the meaning of real estate differently, see What is Real Estate. There are many aspects of real estate that people are interested in and each aspect usually involves more than one person. Below are main players in the real estate market.

Home buyers/sellers

The first group of people that look for a real estate is anyone looking to buy their first home or a home that they actually want to live in. These people are not looking to invest as much as to have a place to call home. When buying (or selling) your own home, there are many factors to consider.

Real estate investors

The second main group of people looking for real estate deals are usually not looking to move in but to invest for profit. To buy a real estate and make profit with it is called real estate investing. So many people have made their fortune investing in real estate. You can even profit from real estate by acquiring property title and flipping it immediately. However, there are also many people who went bankruptcy trying to make it in the real estate market.

Realtors

A realtor or real estate agent is a professional who has real estate license to list and help people buy or sell real estate. Realtors work on commission and the higher the home price the bigger the  commission check. Realtors work closely with other professionals such as the title company, notary republic, or real estate attorneys. Realtors prepare real estate contracts so investors or buyers won't have to.

Lenders and mortgage brokers

Lenders and mortgage brokers don't want to actually own real estate but they profit by lending money to people wanting to buy real estate. Lenders charge many types of fees as well as interest on the mortgages. Mortgage brokers may charge an upfront fee and also may charge the lender for bringing them a customer. If a borrower defaults on the loan, then the home will be in foreclosure.

Other parties

In a real estate contract or deal, there may be many other parties involved such as the title company, mortgage insurance company, home inspector (see Real Estate Inspection), rehabber, general contractors depending on the type of real estate involved. There are also taxing agencies such as the IRS, state and local governments that any real estate owner has to pay attention to.