The real estate business is a diverse industry, including the major sectors of real estate brokerage, property management and leasing. As an industry, the real estate business is open to competition and is friendly to smaller businesses: 50 of the largest real estate companies account for around just 30% of the industry's market share.
Buying an existing real estate agency or broker. This type of business helps clients buy, sell or rent real estate. This often includes hiring and managing real estate agents, marketing properties, and facilitating transactions. Real estate companies will continue to be in demand in the coming years. Financing and credit terms have improved significantly, and a recovering economy is motivating a large, younger generation to own homes, along with many older multi-homeowners.
The future is also bright for commercial real estate agencies dealing with apartments, commercial space and office space. Commercial rents are rising and will continue to increase by up to 4% in 2017. Commercial real estate sales prices, sales volume, leasing rates, and leasing volume all increased significantly.
Although real estate information is more accessible than ever, buyers and sellers will continue to need the expertise, skills and services that only real estate professionals can provide. In 2016, 90% of home buyers used a real estate agent or broker to purchase their property, while 89% of recent sellers sold with the help of a real estate agent. Interestingly, 85% of sellers reported a high level of satisfaction with their real estate agent.
Flipping involves buying properties at a lower price, renovating or improving them, and then selling them at a higher price. It can be a high-risk, high-reward venture. If you are in an area with tourist attractions, you may want to consider purchasing a vacation rental that will manage short-term rentals for travelers.
