Real estate also refers to producing, buying and selling real estate.
Real estate affects the Nigerian economy by being a critical driver of economic growth.
Construction of new buildings is a component of gross domestic product. It includes both residential, commercial and industrial buildings. It contributes 8 to 9 percent to the Nigerian economy.
Real estate agents assist homeowners, businesses and investors buy and sell all four types of properties. The industry is typically divided up into specialists that focus on one of the types.
Sellers’ agents help find buyers through either the Multiple Listing Service or their professional contacts. They price your property, using comparative listings of recently sold properties known as “comps.” The can help you spruce up your property so it will look its best to customers.
Buyers’ agents provide similar services for the home purchaser. They know the local market. That means they can find a property that meets your most important criteria. They also compare prices, called “doing comps.” It allows them to guide you to areas that are affordable. Buyers’ agents negotiate for you, pointing out reasons why the seller should accept a lower price. They help with the legalities of the process, including title search, inspection and financing.
It’s a better indicator of the health of the overall housing industry than new home construction. That’s because new home builders can be overenthusiastic about future sales and overbuild. They can also cut prices to force sales. Individual homeowners must follow the market’s supply and demand. They don’t have the clout to manipulate the market. NHS provides the current housing market statistics.
Real Estate Investing
Everyone who buys or sells a home engages in real estate investing. That means you must consider several factors. Will the house rise in value while you live in it? If you get a mortgage, how will future interest rates and taxes affect you?
Many people do so well with investing in their homes they want to buy and sell homes as a business. There are many ways to do that. First, you can flip a house. That’s where you buy a house to improve then sell it. Many people own several homes and rent them out.
Before you do that, make sure you know what’s the current business cycle. You don’t want to start potentially risky investing if the real estate market is going to crash.
You can also invest in housing without buying a home. You can buy stocks of home builders. Their stock prices rise and fall with the housing market. These are investments in commercial real estate. Their stock prices lag behind trends in residential real estate by a few years.