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Real Estate

Since before the 1800's, real estate transactions for buying a home or listing property for sale have been documented. The profession of Realtor was devised in the United States by the National Association of Real Estate Boards. Realtors were noted as trained professionals who served the general real estate market or an exclusive niche such as commercial real estate or sales of luxury homes.

While there is some debate about what constitutes luxury homes, most agree that those buying a home of $1 million or more fall within the luxury market. Commercial real estate is not as easily defined.

Commercial real estate can involve buying a home if that home is to be used as rental property. Apartment buildings, office buildings and other property also account for commercial real estate transactions. Residential property for sale is not subject to restrictive zoning laws while commercial property is.

Both types of real estate transactions involve applying for a mortgage. While commercial lending decisions are based more on the value of the building / property and the amount of revenue it will generate, home mortgage approvals are granted based on past ability to pay. This is determined via a calculation referred to as the credit score. According to Lending Tree, home mortgages are usually approved for those who have a credit score of above 620. Those with scores below this level may have difficulty obtaining home mortgages.

Read our complete article: Buying and selling of real estate