Real estate business explained

Real estate business is the profession of buying, selling, managing or renting real estate (land, buildings, or housing).[1]

Sales and marketing

It is common practice for an intermediary to provide real estate owners with dedicated sales and marketing support in exchange for commission. In North America, this intermediary is referred to as a real estate agent, real estate broker or realtor; whilst in the United Kingdom, the intermediary would be referred to as an estate agent. In Australia, they are known as a real estate agents, real estate representatives, or simply the agents.[2]

There have been various studies to detect the determinants of housing prices to this day, mostly trying to examine the impacts of structural, locational and environmental attributes of houses.[3]

Transactions

See main article: Real estate transaction. A real estate transaction is the process whereby rights in a unit of property (or designated real estate) is transferred between two or more parties, e.g. in case of conveyance one party being the seller(s) and the other being the buyer(s). It can often be quite complicated due to the complexity of the property rights being transferred, the amount of money being exchanged, and government regulations. Conventions and requirements also vary considerably among different countries of the world and among smaller legal entities (jurisdictions).

In more abstract terms, a real estate transaction, like other financial transactions, causes transaction costs. To identify and possibly reduce these transaction costs, the Organisation for Economic Co-operation and Development (OECD) addressed the issue[4] through a study commissioned by the European Commission,[5] and through a research action.[6]

The mentioned research action ‘Modelling Real Property Transactions’ investigated methods to describe selected transactions in a formal way, to allow for comparisons across countries / jurisdictions. Descriptions were performed both using a more simple format, a Basic Use Case template,[7] [8] and more advanced applications of the Unified Modelling Language.[9] [10] Process models were compared through an ontology-based methodology,[11] and national property transaction costs were estimated for Finland and Denmark,[12] [13] [14] based on the directions of the United Nations System of National Accounts.[15]

Real estate transactions: subdivision, conveyance, and mortgaging, as they are performed in the five Nordic countries are described in some detail.[16] A translation into English is available for the Danish part.[17]

See also

Notes and References

  1. "Real estate": Oxford English Dictionary online: Retrieved September 18, 2011
  2. Web site: Glossary of Terms. Real Estate Institute of Australia (REIA). 25 March 2018.
  3. Book: Annamoradnejad. Rahimberdi. Annamoradnejad. Issa. Safarrad. Taher. Habibi. Jafar. 2019 5th International Conference on Web Research (ICWR) . Using Web Mining in the Analysis of Housing Prices: A Case study of Tehran . 2019. https://ieeexplore.ieee.org/document/8765250. Tehran, Iran. IEEE. 55–60. 10.1109/ICWR.2019.8765250. 9781728114316. 198146435.
  4. Web site: Improving Competition in Real Estate Transactions, 2007 . Oecd.org . 3 January 2012.
  5. Web site: Conveyancing Services Market, 2007 . Europa (web portal) . 3 January 2012.
  6. Web site: Modelling Real Property Transactions, 2001–2005 . Cost.esf.org . 3 January 2012.
  7. Web site: Alistair A.R. Cockburn: Basic use case template . Alistair.cockburn.us . 3 January 2012.
  8. Web site: Default . WG Law and Modelling: UseCase descriptions of Subdivision Procedures, 2002 . Costg9.plan.aau.dk . 3 January 2012.
  9. Web site: Ferlan, Sumrada and Mattsson: Modelling property transactions, pp. 27 – 79 in: Real Property Transactions. Procedures, Transaction Costs and Models. Edited by: J. Zevenbergen, A. Frank and E. Stubkjær . January 2008 . Iospress.nl . 3 January 2012.
  10. Web site: Rados Sumrada: Modeling methodology for real estate transactions, 2005 . 3 January 2012.
  11. Web site: Hess and Vaskovich: Ontology Engineering for Comparing Property Transactions, pp. 183 – 201, and Hess and Schlieder: Ontology-Based Development of Reference Processes, pp. 203- 219, both in: Real Property Transactions. Procedures, Transaction Costs and Models. Edited by: J. Zevenbergen, A. Frank and E. Stubkjær . January 2008 . Iospress.nl . 3 January 2012.
  12. Web site: Vitikainen: Transaction Costs Concerning Real Property – The Case of Finland, pp. 101 – 118 in: Real Property Transactions. Procedures, Transaction Costs and Models. Edited by: J. Zevenbergen, A. Frank and E. Stubkjær . January 2008 . Iospress.nl . 3 January 2012.
  13. News: Stubkjær: Accounting Costs of Transactions in Real Estate – The Case of Denmark. Nordic Journal of Surveying and Real Estate Research, 2:1 (2005) 11–36 . mts.fgi.fi . unfit . https://web.archive.org/web/20090205182021/http://mts.fgi.fi/njsr/issues/njsrv2n12005.htm . 5 February 2009 .
  14. Web site: Stubkjær, Lavrac and Gysting: Towards national real estate accounts: The case of Denmark and other European jurisdictions, pp. 119- 139 in: Real Property Transactions. Procedures, Transaction Costs and Models. Edited by: J. Zevenbergen, A. Frank and E. Stubkjær . January 2008 . Iospress.nl . 3 January 2012.
  15. News: UN System of National Accounts 1993 . mts.fgi.fi . dead . https://web.archive.org/web/20100813233713/http://unstats.un.org/unsd/sna1993/toctop.asp . 13 August 2010 . dmy-all .
  16. Web site: Ejendomsregistrering i de nordiske lande. dead. https://web.archive.org/web/20070613093737/http://www.kms.dk/NR/rdonlyres/667650C1-1C6A-49D0-B634-8CEEA7046422/0/Ejendomsregistreringidenordiskelande.pdf. 13 June 2007. 17 February 2018.
  17. Web site: Property formation in the Nordic countries – Denmark. National Survey and Cadastre (2008)..

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