There are many career opportunities in real estate, including residential and commercial brokerage, property management, appraising, financing, development, and investment. Residential brokers specialize in helping individual home buyers and sellers, while commercial brokers work with income-producing properties. Property managers oversee the daily operations of rental properties. Appraisers evaluate property values. Careers in financing include assisting with loans, while developers build new residential and commercial properties. Some individuals pursue real estate as full-time investors, buying and improving rental properties.

1. Main Concepts of
REAL ESTATE ECONOMICS
Adapted from:
Real Estate Economics
by Marine Natsvaladze & Nino Beraia
Prepared by:
Angelica Zamora

2. Land, Real
Estate, and
Ownership of
Real Property

3. There is an important distinction
made between the terms
‘real estate’ and ‘real property’.

4. REAL
ESTATE
Immobile and tangible components which
includes
• Land
• All things that are natural part of the land (e.g.
trees and minerals)
• All things attached by people (e.g. building
and site improvements)
• All permanent building attachments (e.g.
plumbing, electrical wiring, heating systems)
and built-in (e.g. cabinets, elevators)

5. REAL
PROPERTY
Simply real estate plus a bundle of rights
1. The right to possess - to occupy the property.
2. The right to control - to determine interests and
uses for others.
3. The right to enjoy - to use the property without
outside interference.
4. The right to exclude - to refuse others' interests
or uses for the property.
5. The right to dispose - to determine how and if
the property is sold or given to another party.
In an appraisal, a particular set of real property interests,
not the real estate, is what is valued.

6. Improvements
Any form of land development (e.g.
buildings, roads, fences, and pipelines)

7. Personal property
A right/interest in things of temporary or in movable
nature; one not classified as a real property

8. Fixtures
• An object attached to the land to become
part of the real estate
• If a personal property becomes attached to
the land, it becomes a fixture
• A fixture is a property of the landowner,
when the land is conveyed to a new owner, it
is automatically included in the land.
• E.g. Koi pond, built-in shelf, etc.

9. Career
Opportunities in
Real Estate

10. Residential
Brokerage
Real estate broker who specializes in
residential real estate.
• Broad knowledge of the community and
neighborhood
• Understanding of real estate principles, law, and
practice
• Ability to work well with people
• Can identify the client’s motives and find the
property that will fit
Working hours: Often includes nights and weekends as these times
are usually most convenient to buyers and sellers
Clients: Home buyers and sellers

11. Commercial
Brokerage
Real estate broker who specializes in income-producing
properties such as apartment and office buildings, retail
stores, and warehouses.
Primarily selling monetary benefits—income,
appreciation, mortgage reduction, and tax shelter that a
property can reasonably be expected to produce.
• Competent in mathematics—financing transactions
and keeping up with current tax laws
• Analytical in knowing what makes a good
investment, what makes an investment salable, and
what the growth possibilities are in the
neighborhood where a property is located

12. Commercial
Brokerage
Real estate broker who specializes in income-producing
properties such as apartment and office buildings, retail
stores, and warehouses.
Working hours: Close to regular working hours but most
brokers spend their nights and weekends “networking” as
that is a primary source of their business.
Clients: Community leaders and people brokers network
with on charitable services, fundraisers, golf tournaments,
and similar activities
Entry into the brokerage and acquiring a client: SLOW but once
in the business, agent turnover is low because per-deal commissions are
higher, since properties are more expensive, and agents get a percentage
of the sale price; Sale can take place in 10 months

13. Industrial
Brokerage
Real estate broker who specializes in finding suitable land
and buildings for industrial concerns, like leasing and
developing industrial property, as well as listing and selling it.
• Competent in mathematics—financing transactions and
keeping up with current tax laws
• Analytical in knowing what makes a good investment, what
makes an investment salable, and what the growth possibilities
are in the neighborhood where a property is located
• Familiar with industry requirements—proximity to raw
materials, water and power, labor supplies, and transportation
• Knowledgeable about local building, zoning, and tax laws
• Commissions are irregular, but usually substantial.
Working hours: regular business hours
Clients: Sophisticated businesspeople
Entry into the brokerage and acquiring a client: SLOW

14. Farm
Brokerage
Real estate broker who specializes in
farmland/areas
• Must be equally capable of handling the tho-acre spread
of the farmer Jones and the io,000-acre operation owned
by an agribusiness corporation
• College training in agriculture is an advantage and
on-the-job training is a must
• Knowledge of soils, seeds, plants, fertilizers, production methods,
new machinery, government subsidies, and tax laws
• Farm brokerage offers as many opportunities to earn commissions and
fees from leasing and property management as from listing and selling
property.

15. Property
Management
Supervise every aspect of a property’s operation to produce
the highest possible financial return over the longest period
• Tasks include renting, tenant relations, building repair and
maintenance, accounting, advertising, and supervision of
personnel and tradesmen.
• Public relations expert
• Good bookkeeper
• At ease with tenants, handy with tools, and knowledgeable about laws
applicable to rental units
Clients: condominium owners, large businesses that own property for their
own use

16. Rental Listing
Services
Started by individual entrepreneurs who help tenant find rental
units and landlords find tenants.
• Most compile lists of available rentals and sell this
information to persons looking for rent.
• Each property on the list is accompanied by information
regarding location, size, rent, security deposit, pet policy, etc.
Roommate listing services: Popular in cities with a substantial
number of single persons
• Maintain files on persons with space to share and those looking for
space.
• The files contain information such as location, rent, gender, smoking
preference, etc.

17. Real Estate
Appraising
Gather and evaluate all available facts affecting
a property’s value
• Does not require selling, however, it demands a special skillset of
its own:
• Practical experience, technical education, and good judgement
• Analytical mind and like to collect and interpret data
• Combines office work and field work
• Income of an expert appraiser can match that of a top real estate salesperson
• There are several opportunities to work as a salaried appraiser for local tax
authorities or lending institutions
• Most lenders and taxing authorities have now required that their appraisers have
some advanced credential designation or special state certification to ensure an
independent appraiser.

18. Government
Services
Negotiate purchases and sales, appraise,
finance, manage, plan, and develop real estate
In a city, counties, and state, a portion of real estate is
considered government owned (e.g. vacant and forested
lands, office buildings, museums, parks, zoos, schools,
hospitals, public housing, libraries, fire and police
stations, roads and highways, subways, airports, and
courthouses)

19. Land
Development
Developers build most new homes who in turn sell
them to homeowners and investors.
Some homes are built by small-scale developers to
homeowners and investors. Some homes are built by small-
scale developers story condominiums that are developed
and constructed by large corporations that have their own
planning, appraising, financing, construction, and marketing
personnel. There is equal opportunity for success in
development whether you build 4 houses per year or work
for a firm that builds 400 per year.

20. Urban Planning
Work with local governments and civic groups
for the purpose of anticipating future growth
and land-use changes.
• Makes recommendations for new streets, highways,
sewer and water lines, schools, parks, and libraries.
• Emphasis on environmental protection and controlled
growth has made urban planning one of real estate's
most rapidly expanding specialties.
• Job is usually a salaried position and does not emphasize
sales ability.

21. Mortgage
Financing
have a dual role: (1) to find economically sound
properties for lenders, and (2) to locate money for
borrowers.
• Can work independently, receiving a fee from the
borrower for locating a lender, or as a salaried
employee of a lending institution
• Sonic mortgage specialists also offer real estate
loan consulting for a fee as they help a borrower
choose from among the numerous mortgage loan
formats available today, find the best loan for the
client, and assist in filling out and processing the
loan application.

22. Securities and
Syndicators
Limited partnerships and other forms of real estate syndications
that combine the investment capital of a number of investors to
buy large properties number in the thousands.
• The investment opportunities and professional
management offered by syndications are eagerly
sought after by people with money to invest in real
estate.
• There are job opportunities in creating, promoting,
and managing real estate syndications.

23. Consulting
Giving others advice about real estate for a fee
• Must have a very broad knowledge about real
estate including financing, appraising, brokerage,
management, development, construction, investing,
leasing, zoning, taxes, title, economics, and law.
• To remain in business as a consultant, one must
develop a good track record of successful
suggestions and advice.

24. Research and Education
Can concentrate on such matters as improved construction materials and
management methods, or on finding answers to economic questions such as
'what is the demand for homes going to be next year in this community (state,
country)?"
• Nearly all states (US) require the completion of specified
real estate courses before a real estate license can be
issued.
• All states (US) require continued education for license
renewal (mandatory continuing education, or "MCE").
• Persons with experience in the industry and an ability to
effectively teach the subject are much sought after as
instructors.

25. Full-Time Investor
As a full-time investor, there are a lot of
approaches you can do:
a. A popular and successful route for many has been
• to purchase, inexpensively and with a low down-
payment, a small apartment building that has not been
maintained but is in a good neighborhood
• The property is then thoroughly reconditioned, and
rents are raised which increases the value of the
property
• The increase is parlayed into a larger building—often
through a tax deferred exchange—and the process is
repeated.

26. Full-Time Investor
As a full-time investor, there are a lot of
approaches you can do:
b. The investor can increase the mortgage loan on the building
and take the cash he receives as a "salary" for himself or use it as
a down payment on another not-too-well-maintained apartment
building in a good neighborhood.
c. Other individual investors search newspaper ads and regularly visit
real estate brokerage offices looking for underpriced properties that can
be sold at a markup
d. To become a small-scale developer and contractor. Through your own personal
efforts, you create value in your projects, and then hold them as investments.
It is not unusual for an investor to acquire several dozen rental houses over
a period of years.