*A GUEST POST BY THE ANALYST HANDBOOK*
Real Estate is primarily divided into two different categories, residential and commercial.
Residential Real Estate involves housing tenants and providing a space for people to call home. Commercial Real Estate on the other hand, is primarily involved with the space and area for businesses or companies to house their operations, or for the space they need to function. There are lots of different types of each, but we’re going to dive into the different types of Residential Real Estate.
Single family homes are properties where a family or a small group of people reside or live in. Depending on the location of the property, the condition of the property, and the size of the property, the values and costs tend to vary in nature. Single-Family homes can be small, inexpensive pieces of Real Estate, or larger, more luxurious pieces of Real Estate as well. It all depends on the type of home or house that’s built, the way the inside is renovated, the way the home is constructed, and the type of features, or amenities the home has.
There are lots of variables and factors that affect the value of a single-family home, like the number of bedrooms it has, the amount of square footage or space it has, and the type of features the house contains, like the design of the kitchen, the layout of the house, a pool in the backyard, or even a patio or deck area as well. Each house or single-family home is going to be different, with a different set of features, benefits, advantages, and disadvantages as well.
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A condo is a bit different than a single-family home. It’s often situated or among other condos nearby or within the same complex or building. A condo is typically an apartment or a space within a building, that a person or entity owns. The type of features within a condo are often much different than those of a single-family home.
Condos often come with a package of amenities within the building or the complex it’s situated in. There might be a communal swimming pool, a gym, a business center, or a garage as well. The types of amenities a condo has, the way it’s renovated, and the type of condition the condo is in, play a role in the type of value the condo has as well. There are lots of variables to consider when it comes to a condo, and many factors that affect the value a condo has.
A Co-Op is another way that residential Real Estate can be structured and situated. A Co-Op is often a building or a complex, where the apartment owners or investors own their apartments or spaces in the form of shares within a company. Depending on the type of apartment, property, or Real Estate the owner owns, a certain amount or number of shares are allocated to each apartment owner or investor. It’s a different structure of ownership than a typical single-family home or a condo, but it acts in a similar manner. You’re able to own your own unit, and own property, but the form and methodology behind the ownership is a bit different. Another aspect that comes with a Co-Op, is the Co-Op board.
Each Co-Op has a selected group of people, or a group of owners who govern the Co-Op. The Co-Op board has the ability to approve or deny new entrants or potential buyers into the building. Part of the barrier to owning or living in a Co-Op, is the interview process, or the application processes to get approved. It makes a bit more difficult to find a suitor to purchase your property when you’re looking to sell. It’s different from the traditional condo, or single-family home where it’s up to the owner to decide who they would like to sell to and they have the freedom to manage the property as they like. With a Co-Op, there are other shareholders within the building or the complex, and if you own shares within the Co-Op, you have to adhere to the rules and guidelines they set out for the building. A Co-Op board plays an important role in the management and operation of the property.
Townhouse or Brownstone
Real Estate that’s larger than the typical apartment are sometimes grouped together within a townhouse in the form of a multi-family house. With multi-family houses, they’re sometimes considered 2-4 or more family dwellings. It’s not considered an apartment building or a multi-family building, because of its size, but it is considered a townhouse or a brownstone, consisting of a few units.
The value of these depend on the size, the type of interior it has, the location it’s in, whether it’s been renovated, and the type of condition the property is in. Sometimes these properties have interesting and unique exteriors due to the type of design, and the size of them. Townhouses or brownstones are a unique building composition, and are often somewhere in between a condo, and an apartment building.
Within Residential Real Estate, there are a variety of different types of residential properties and property types that are available. Lots of what Real Estate Analysts do for Real Estate development companies is to try to figure out or analyze which type of structure or residential composition will produce the best results or be the most effective. Each area or location caters to a different clientele, and as a result, different residential Real Estate structures are effective in different locations.
Single-family homes span a wide range with various types of size, scale, and design. The way the houses are built, the type of designs they have on the interiors, and the condition they’re in, are important to consider when determining their value.
A condo is a smaller space, often located within an apartment building or a complex, where they range in size based on the number of bedrooms they have. The way a condo is valued often depends on the building or complex it’s in, the type of amenities offered, the design or interior of the condo, and the condition of the property as well.
A Co-Op is a bit different than a condo, or a single-family home, in the way the ownership is structured. Similar to when buying shares within a company, a Co-Op has a board that manages the property, and an approval or application process to be admitted living there or purchase within the Co-Op building is required.
A townhouse or multi-family dwelling is a bit larger than a condo, but smaller than an apartment building or complex.
There are lots of different styles and types of Residential Real Estate, the ones we mentioned and highlighted are a few of the more common ones among Residential Real Estate.