If you’re looking to become a real estate investor, or just looking for exact details about selling your home, it helps to know about the different types of real estate properties. There are five base types to consider: residential, commercial, industrial, agricultural, and special-purpose.
Residential Property property is what most home buyers or sellers deal with. Residential Property property includes property that serves as a dwelling or a home. It does not matter if the dwelling is a house, a multi-family home, or a duplex. All are considered residential. These can be either in the city proper, more suburban area, or rural areas. It should be noted that while property law may zone the building a certain way, a lender may view it differently. For example, multi-family homes above a certain size or apartment complexes are viewed as commercial and as such would be ineligible for residential loans.
Even if a home buyer does not deal with commercial real estate everyone is familiar with commercial properties. A commercial property is one where business or commerce takes place. Examples would be parking facilities, malls, stores and shops, hotels, entertainment venues, or any form of market. Commercial property has a different set of criteria for interested buyers, since they deal with businesses zoning, parking, tax rates, and traffic flows become much more important than just the building itself. Entrepreneurs and investors often consider commercial properties and would have knowledge or ideas of how to expand on the value of existing properties. Some companies that buy homes will convert houses into commercial properties for this purpose.
This property can easily be confused for commercial property, especially since it typically has commercial use. In fact, as long as it follows industrial zoning codes, a commercial property can be set up in an industrial area. However, industrial property itself is set apart to include factories, warehouses, power plants, and other high utility buildings that don’t necessarily see a lot of foot traffic. The primary difference is that commercial properties are where goods are sold, whereas industrial properties the goods are manufactured or supplied.
Agricultural property is pretty straightforward to designate and understand conceptually. It is land that is primarily used for agriculture. Most people would think of just farms, but ranches are also included as agricultural. More abstract agricultural uses are orchards, certain types of swamp, or forests being grown for timberlands. Specific knowledge is definitely a must with this type of land, as not all crops, products, or livestock can be grown in all areas. Even if something were grown there in the past, knowledge of the depletion of nutrients must also be considered.
Special purpose properties aren’t beyond the purview of real estate investors, but most people don’t deal with them. Part of the definition for special purpose properties are that it is property that is appropriate for one use or limited use. It doesn’t have as much to do about the land as the building on it if the building is one that cannot be converted to another use without a large capital investment. As such these usually have very limited market of potential buyers and are not optimal for quick property sale.
Some examples of special use property include the following: churches, schools, government held lands, and cemeteries. www.property.cohttp://www.properti.co/
Hopefully this overview helped to illustrate the differences between the major different types of property. The information that is needed to make an informed purchasing decision varies wildly depending on the type of property being viewed. Make sure that whatever agent you are using is appropriately knowledgeable about the type of property you are considering and any zoning laws that may be involved.