22 Jun, 2021

Real estate market what is it? A complete guide to the segment

Many people today ask themselves: “what is the real estate market?”. And this is a clear sign that there is more and more interest in the subject, so that the real estate market can be more and more present in people’s lives.

And that’s why, in today’s article, vile Imob wants to take you to know this market as a whole. Thus, you will be able to identify the main areas and sectors of the real estate economy.

Who knows, you might even use this article as research to design a new product, solution or real estate project. After all, the area is very large and there is demand on many fronts.

So, to understand what real estate market is, keep reading. And if you prefer, get your coffee, paper and pen and write it down. Follow up!

Real estate market what is it? See a complete guide to the segment

When we ask ourselves, “what is the real estate market?”, we automatically think of properties for sale. After all, physical property is one of the first things we can somehow visualize in our minds.

But the real estate market is much bigger than that. At least with regard to areas of action and departmental synergy. After all, the sale of the property itself is just the tip of the iceberg of a series of operations, actions and strategies that we need to put into practice.

In general, the real estate market is the gathering of a series of activities that are directly and indirectly related to real estate itself. Therefore, it will not be uncommon to find alternative sectors that, in some way, are part of the real estate market.

For example, you might notice businesses such as advertising agencies, video producers or specialist real estate consultancy. In other words: it really is much broader than just selling real estate, isn’t it?

But do not worry. We’ll dig deeper into the topic from now on so you can get a better idea of ​​how the industry works. After all, the answer to the question “what is the real estate market?” is ample!

Come on.

What is the difference between a builder and a developer?

Following the text so far, we understand the basic principles of what the real estate market is. And as we noticed, it is very broad and full of strands. After all, there’s a lot built up around it.

So, let’s start by understanding the difference between a construction company and a developer, which are two very common types of companies in the real estate industry. See below.

What is a construction company?

The construction company is nothing more than the company that, in fact, builds the property. And this is already very clear in your name. In general, the construction company is the one who will bear all the services related to the execution of a project.

In this case, it is the construction company that also needs to work to hire all the necessary and specialized labor for each type of task in the work.

Many construction companies, in this case, offer all kinds of services that the project asks for. But others don’t. Therefore, it is necessary to choose correctly so that there are no unforeseen events and delays in the delivery of the real estate project.

Popular construction companies in Brazil:

  • Engineering Direction
  • Pacaembu Construction
  • Toledo Ferrari

But, if the construction company is responsible for carrying out the work and hiring labor, who is responsible for hiring the construction company? It’s the developer! So, understand everything about her below.

What is a developer?

While the construction company will carry out the work, the developer will plan it. In other words, it is through the developer that the construction company will be hired after the entire feasibility project and architectural project are ready.

In short, it is the developer who is responsible for all the bureaucratic and documenting part of the real estate release. In other words, it is they who have to buy the land, sign documents, hire engineers and architects, win licenses and certificates, etc.

Often, the developer itself is already able to carry out the work, because in its umbrella of companies, there is also a construction company. When this happens, you must be careful not to have any kind of conflict of interest.

Anyway, our tip is: always try to understand more about the developer and also about the builder before buying a property. It’s important to know who you’re being a client, ok?

Read more about it:  Do you know the difference between a builder and a developer?

What is the difference between a real estate agent and a real estate agent?

Now that we understand the difference between a builder and a developer, the initial key elements in every real estate process, we also need to understand who will sell these properties later.

In general, the developer itself will often open a sales shift to sell newly launched properties. But when that doesn’t happen, it’s the broker or the real estate agent who takes action.

And what is the main difference between them? See below:

What Does a Realtor Do?

A real estate broker is nothing more than the professional who will sell real estate. He can work autonomously or he can work linked to a real estate agency. Both forms are valid and generate results.

The real estate broker needs to be registered with CRECI so that he can sell real estate and his remuneration will be based on commission. On average, 6% to 10% commission for each sale made.

If the broker is linked to a real estate agency, in this case, he will earn a reduced commission – as he will have to share it with the real estate agent.

To understand more about the subject, read:  Do you know how much a realtor earns?

It is often the real estate agent who will sell the properties that the developer designs. So, it won’t be difficult to see a property under construction and, sometime later, see some “for sale” signs pasted on the property, with real estate contacts.

What does a real estate agency do?

Okay, if the realtor sells the property, what does a real estate agent do and what is its role? Basically, real estate can act in order to plan actions and strategies to sell certain properties.

Brokers who are linked to real estate, for example, can have access to the entire structure of the company to streamline their sales. They will even be able to access the real estate system to manage and organize their demands.

Even though this comes at a cost (commission split), it is often worth it for the beginning freelance broker to be close to a real estate agency. After all, he will have a good structure to work with.

A real estate agency is also a way to build authority and increase revenue, as it is better able to serve multiple clients at the same time and somehow scale the business.

See a list of some real estate agencies in Brazil:

  • Real Estate Quality
  • Bastos e Souza Umbilicaria
  • Rondônia Real Estate
  • Real Estate Lakes

What is a Proptech and what do they do?

Even though your question for the question, “what is the real estate market?”, has already been answered in a broad way during the previous explanations, know that there is still room for more aspects!

Yes, the real estate market is huge and, within it, there are also the so-called Proptechs. This type of company can be characterized as being a real estate technology company.

In other words, they are companies that offer intelligent and technology-based solutions, so that the sector can develop and sell more.

Ville Imob, for example, is a Proptech.

We offer various solutions for real estate brokers as well as real estate agents, such as management systems as well as real estate CRM technology. In addition to other products that aim to make life easier for those who sell real estate.

And if you want to learn more about the subject, check out this article:  Proptechs Brasil: how they are innovating in the real estate market.

The importance of graphic providers – Videos, images with drones and virtual tour

In addition to all the companies and technologies mentioned above, there are also companies that work with agencies.

For example, there is space in the real estate market to provide diverse services and products, such as images, videos, audio, content, etc.

There are companies specialized in serving the real estate sector, such as advertising agencies, video producers, image capture with drones, virtual tours and augmented reality, etc.

Yes, the real estate market is very big. It is a growing and constantly changing field, where the professional must always be on the lookout to learn new technologies and skills.

On the vile Imob platform you can embed the YouTube property video in the website ad, boosting sales and leases.

And if you want to learn how to be a part of it, keep reading. We will now understand some ways to enter this field.

Ways You Can Enter Real Estate

You can be a part of the real estate market in many different ways. Although the most common way is buying an investment property, there are other ways that can also be embraced.

See some below:

  • Acquisition of a property for housing or investment;
  • Construction of an enterprise from scratch according to local demands;
  • Through investment in shares of Real Estate Funds;
  • You can be a freelance realtor;
  • Maybe you can open your own real estate agency;
  • Offer services and solutions for the real estate market as a whole;

Acquisition of a property for housing or investment

This is the simplest way to participate in the real estate market. In other words: investing in real estate.

You can buy properties to sell or to rent. It will even be able to buy properties in auctions to, who knows, sell them at more profitable prices in the future.

This is a modality that requires a high degree of investment, as you will need to pay for purchases or financing and your return may take some time to come.

Construction of a project from scratch according to local demands

Another way to get into the real estate business is to build a project from scratch, taking advantage of some demand in your neighborhood or city.

In this case, you can even open a developer to identify opportunities and make launches. Or, if you prefer, you can study the feasibility of a new construction company in the region.

Make sure you study the market well to be able to design a business that has a useful life and is profitable.

By investing in shares of Real Estate Funds

Another way to participate in the real estate market is investing in FIIs – which are real estate investment funds.

In this case, you don’t even need to own a property to receive rent for it. All you need to do is buy shares in a real estate fund and thus obtain a return on your invested capital.

This is a dynamic way that offers great liquidity for real estate acquisitions, without having all the bureaucracy of notary offices, documents, regularizations, etc.

You can be a freelance realtor

Who knows, the real estate market calls your attention to being a self-employed realtor, right? If this is the case, be aware that this is quite possible and feasible. After all, it is a market that can bring great results in the medium and long term.

In fact, here on Ville Imob’s blog, we’ve already written about the subject, see:  How to be a realtor – Tools, courses, fundraising and sales.

Maybe you can open your own real estate agency

If you don’t want to be a realtor, but you want to own a real estate agent, that’s also possible. Even though you’ll need brokers to work with, a real estate agency is a way to scale your business and generate more revenue in less time.

To build your real estate, you will need to study the location and understand the region. Never start a business without studying it first, ok? Whether you are a self-employed broker or a small real estate company, the vile Imob platform has special real estate plans and tools for you.

Read our article:  How to open a modern and efficient real estate.

Offer services and solutions for the real estate market as a whole

And finally, to participate in the real estate market as a supplier or as a real estate professional, remember: always seek to offer practical solutions that make sense for clients – whatever they may be.

Always keep in mind the issue of supply and demand. Building a project on top of something that is in demand is easier than building the demand and then building a business to meet it.

Any questions, leave a comment here and count on Ville Imob to help you sell more properties, whether you are a self-employed broker or you own a real estate agency. We wish you success and good sales!

 

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