Real estate – it’s more than just buying and selling houses. This industry is constantly evolving, and anyone who’s been working in it for more than a few years will tell you it’s intricately tied to all kinds of things. Economic trends, local culture, geography — you name it! Here in the US, the real estate business can seem daunting, with its complex processes, diverse markets, and unique challenges. However, it has the potential to be lucrative if you go in with your eyes open and aren’t afraid of doing plenty of research. Let’s break down the basics of how it all works.
How Does Real Estate Work in the US?
Real estate in the US revolves around three core markets. Residential, commercial, and industrial properties. Most people are familiar with residential real estate, after all, we (pretty much) all live in a residential property! Commercial real estate includes office buildings and retail spaces, while industrial real estate tends to be factories, warehouses, and the like.
So how does the process work? Typically, it starts with an agent who helps the buyer navigate the purchase. If you’re selling, a listing agent will market your property – and manage offers. Throw in escrow companies, home inspectors and attorneys — and you’ve (just about) named all of the parties involved in a typical transaction.
How Does the US Compare Globally?
As you might expect, things aren’t the same everywhere! In the US, it’s a little more unusual to find instant cash offers for your home, but in the UK it’s much more commonplace. Companies like We Buy Any Home operate in Nottingham, Manchester, Liverpool, all of the major UK cities – and tiny villages too. This company in particular offers an instant valuation of the real estate in question and then buys it, often in as little as 7 days. It’s a far cry from the open houses and bidding wars of the US, but is a popular option in the UK.
This approach highlights a key difference between US and UK markets – speed versus personalization. The US process can take longer while they find a specific type of buyer, whereas UK sellers sometimes prioritize convenience and speed.
Why Is Real Estate So Location-Dependent?
You’ve probably heard the saying, ‘Location, location, location’. In fact, in the UK there’s a popular television series that literally has this name! Why is it such a big deal? In short, it boils down to supply and demand. Job opportunities, school districts, and even the local climate can all have an effect on this.
For example, in cities like New York and San Francisco, housing demand outpaces supply. This has created ultra-competitive markets, where bidding wars often drive up prices. On the flip side, rural areas tend to have more affordable properties but fewer buyers. This typically leads to slower sales cycles — and sometimes offers — under the asking price.
Is It The Right Industry For You?
The real estate industry is fiercely competitive, but it is still possible to make a profit! How easy it is will depend on how far you’re willing to travel, how much work you’re willing to put in and whether you can do the research required to find the right property.
Also Read: Solving Staffing Challenges with Tailored Real Estate Outsourcing
