When people think of real estate, like your house and lot for sale in laguna, the idea of owned properties, usually houses and buildings, that are bought and sold comes to mind. This concept of real estate is not wrong, since real estate encompasses a wide variety of properties that allow for both human activities and shelter.
A more technical definition of real estate would be to view real estate as real property involving land itself and the attachments and improvements on the land in question. Hence, real estate includes not just buildings, but infrastructure, utility systems, and the like.
One of the more well-known types of real estate property in real estate investment is residential real estate, which will be emphasized more in the later portion of this blog.
Different Types of Real Estate
The real estate market involves the buying and selling of different kinds of real estate in different real estate investments. The first and basic kind of real estate is raw land, which is where the rest of the types of real estate are built upon. Real estate land usually refers to land that is vacant or undeveloped. Improvements such as structures are built on land in order to raise the value of the land itself.
Commercial Real Estate
Commercial real estate includes properties that foster commercial activities like stores, offices, hotels, grocery stores, supermarkets, shopping centers, parking facilities, and the like. Bonifacio Global City (BGC) is a good example of commercial real estate because of the many buildings and commercial real estate located in the area that is purposed for business purposes and commerce. BGC continues to grow at present because of the continual development of commercial real estate in the area.
Industrial Real Estate
Industrial real estate refers to structures purposed for industrial and manufacturing activities. These include factories and warehouses that house activities regarding production, development, transportation, mechanical production, logistics, research, and the like.
Residential Real Estate
Residential real estate refers to properties that provide housing for inhabitants. This is the kind of property that people are most familiar with when doing real estate transactions. Residential real estate properties typically involve coordination between real estate agents and real estate clients or real estate investors. Real estate investments are then sorted out through processing property taxes, asking prices, compliance with zoning laws of the personal property that potential buyers are interested in, and the like.
Examples of residential real estate, other than your house and lot for sale in laguna, are single-family homes, apartment complexes, condominiums, single-family houses, townhouses, and other properties offered for residential purposes on the real estate local market.
Parts of the Real Estate Industry
When getting into selling real estate, it is good to conduct research on the background and relevant information on how the different parts of the real estate industry work.
Property Management
Managing buildings, residential real estate, living space, real property, and the like involves significant amounts of time and effort. Hence, property management firms help property owners do such tasks and generate revenue at the same time. Property management conducts tasks such as repairs, rent payment collection, tenant, management, and the like.
Brokerage
When a potential buyer wants the best deals available, like a house and lot for sale in laguna, on the residential real estate market in a particular location, brokerage firms do their part by providing a contact list of real estate agents to facilitate the transactions between the buyers and the seller.
Development
The development of real estate properties such as buildings and houses includes land development and construction. Processes such as renovations, rezoning, and purchasing of raw land are done in order for investors to develop new properties that keep the real estate industry running.
Sales and Marketing
Firms that specialize in marketing and sales are purposed for fostering the selling of properties developed by developers. For example, real estate sales for residential properties located in suburban areas, such as single-family homes or a house and lot for sale in laguna, are advertised by sales and marketing firms by holding open houses.
Lending
Real estate investment can involve big payments given the required procedures, therefore loans and lending are common in real estate. Examples of lenders include credit unions, government institutions, banks, and the like.
The Process of Selling Residential Real Estate in the PH
A Contract of Agreement is signed.
In preparation for a contract of agreement, the seller and broker will first discuss the conditions, pertinent to the real estates transaction, like fees, loans, documents, and the like.
An Authority to Sell is signed.
In signing the contract or agreement, exclusive rights to sell the property will be given to the relevant broker to sell the property. This process also makes it such that the property to be sold has no encumbrances, which is a technical term that refers to an interest in the property by other persons that may hinder the ongoing real estate transaction.
The broker conducts a property assessment.
The current market value of the property to be bought or sold is then assessed by the broker, which will take into account different factors such as location and quality.
The broker offers or sells the property.
The property owner and their respective real estate agent or broker will then coordinate on how the property will be marketed. This includes a discussion on how the related marketing fees and expenses will be handled.
A property viewing is conducted.
When buyers contact the broker, the broker will allow buyers to view the property for sale, like conducting an open house on a house and lot for sale in Laguna.
The buyer writes an offer or Letter of Intent to buy the residential property.
When interested buyers find a residential property of their liking, they will forward their interest to the property owner through a Letter of Intent that details the conditions of an agreement to hold a real estate transaction.
The residential property owner accepts the offer from the buyer.
Once the property owner accepts the buyer’s intent to purchase the property, the seller and buyer come to an agreement that the seller will not offer the property to other buyers on the condition that the buyer does not violate the conditions agreed upon on the Letter of Intent.
Legal documents are processed accordingly.
The following legal documents are then processed in the real estate transaction:
- Certified True Copy of Condominium Certificate of Title (Unit)
- Certified True Copy of Transfer Certificate of Title (Land)
- Certified True Copy of Condominium (Parking)
- Original Real Estate Tax Receipts
- Certificate Authorizing Registration from the Bureau of Internal Revenue (BIR)
- Lot Plan / Subdivision Plan
A Deed of Absolute Sale is prepared and notarized.
After the pertinent payments are paid in the real estate transaction a Deed of Absolute Sale is prepared to be signed by both the property owner and buyer. At this stage, property ownership is now transferred to the buyer. The Deed of Absolute Sale is then notarized to become considered a public document.
