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Risk factors in Real Estate

Real Estate is nothing but producing, buying and selling of land and buildings. The term real estate means real or physical property. There are basically four types of real estate. The Residential Real Estate which includes new constructions and reselling of homes. The next is Commercial Real Estate which includes shopping centers, malls, medical and educational buildings, offices and hotels. Then comes the Industrial Real Estate which includes manufacturing buildings, properties, and warehouses. And the last island which includes vacant land, ranches, and working farms.

Real Estate is nothing but producing, buying and selling of land and buildings. The term real estate means real or physical property. There are basically four types of real estate. Residential Real Estate includes new constructions and reselling of homes. The next is Commercial Real Estate which includes shopping centers, malls, medical and educational buildings, offices and hotels. Industrial Real Estate which includes manufacturing buildings, properties, and warehouses. Land as real estate includes vacant land, ranches, and working farms.

In this real estate sector, there are lots of risk factors which buyer and seller must be aware of. According to the buyer, he/she must check the property twice before buying it. As nowadays many fake sellers and owners are also found in the market, they will show the fake documents of the property, take the chunk of money and flee. Therefore, the buyer must be aware of the frauds happening in the market and must cross check the property before buying it.

The next is the buyer must be aware of the neighboring area environment of the location of the property. As we all know that safety comes first. Therefore, the buyer must check whether the environment has proper safety and security or not.

According to sellers, the presence of a good number of buyers is important as it creates a positive demand for the property. If the number of buyers is less, then the sellers have to undersell their property or sell it at a very low price, incurring huge loss.

Another risk factor is that often the seller has to go to the registered leases for residential and commercial properties as owing to the outdated tenant laws, tenants hold of the property making it difficult for the owners and sellers. Selling or renting property to a buyer or a tenant who has a past criminal records can also be a risk factor for the owner of the property. The seller or the owner should cross check all the details of the buyer or the tenant for future security. Depreciation of the property is another risk for the seller to sell their property. If the property is land, then the value get increases over the passing years. But a concrete property loses its value over time.