Real Estate

1
Real Estate
2
Table of Contents

• What is Real Estate? (3)
• Real Estate Family Tree (4)
• How did Real Estate Begin?(5)
• How Real Estate uses the internet(5-6)
• Internet Real Estate and Competition(7)
• The internet and beyond(8)
• Conclusion(9)
• Bibliography(10-11)

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What is Real Estate

• Real estate is land and all the things
  permanently attached to it, such as trees,
  buildings, and minerals beneath the surface. A
  house is real estate, but the rugs and furniture
  in it are chattels (personal property).
• The basic real estate vocation is that of a
  broker, who markets real property on behalf of
  owners. Typically, salespeople are associated
  with and responsible to the broker. A career in
  real estate usually begins with sales work that
  may involve long, irregular hours. But success
  may bring an excellent income.
• More than 1,800,000 people in the United States
  are actively employed as real estate brokers or
  salespeople. Many more people work in building,
  mortgage finance, and related fields. All states
  require real estate agents and brokers to be
  licensed. Applicants must pass a test on real
  estate principles. Fields of specialization in
  real estate include appraisal, property
  management, and counseling on such real estate
  problems as industrial sites and farm purchases
  and sales. Other specialized fields in real
  estate are mortgage lending, financial analysis,
  and market analysis.
• The National Association of Realtors coined the
  term Realtor to designate its active members who
  subscribe to the Code of Ethics of the
  association. The term may not lawfully be used by
  others.(1)
• 1.Real estate Article - World Book Online
  Reference Center (American English)
  

4
Real Estate Family Tree
5
How Did Real Estate Begin

• Louisiana Purchase (Dec. 20, 1803) In this
  transaction, the United States bought 827,987
  square miles (2,144,476 square kilometers) of
  land from France for about 15 million.(2)
• Jefferson, Thomas Article - World Book Online
  Reference Center (American English)
  
•   By 1850, the fur trade had mostly come to an
  end, many traders entered the new businesses of
  real estate, lumbering, mining or railroading.
  
• John Jacob Astor Following the war, Astor
  invested in a small fleet of ships to carry his
  furs to Europe and the Far East, particularly
  China. This international trade was immensely
  profitable, allowing Astor to invest heavily in
  farmland on Manhattan Island.(3)John Jacob Astor

6
How Real Estate uses the Internet

• These days, more than 70 of home buyers shop
  online before inking a deal, up from 41 in
  2001.
  
• Net insurgents HomeGain.com Inc. and LendingTree
  Inc., already a leader in mortgages, may have a
  bigger impact. They're using the power of the Net
  to gather home sellers and buyers, and funnel
  them to realtors. That pressures existing
  middlemen, from realtors to franchisers,
  including RE/MAX International Inc. and Cendant
  Corp. (CD ), to be more competitive, offer better
  service, and cut rates.(
• NARs study, conducted among a statistically
  representative sample of recent buyers and
  sellers nationwide, found that the Internet now
  accounts for 11 percent of all home purchases.
  That is, 11 percent of all buyers say they found
  their home on the Internet. Modest though that
  may sound, it represents a major leap from just 4
  percent in 1999 and 2 percent in 1997. 4)Nearly
  40 Percent of Home Buyers Use Web

7
Uses Contd.

• NAR analysts are not certain why this should be
  so, but theorize that Internet-savvy purchasers
  may start their formal search earlier in the
  home buying process, or simply are more thorough
  in their research.
• The percentage of Realtors who believe having a
  Web site and using the Internet has changed the
  way they do business has increased to 64 percent
  in 2003 from 50 percent in 2002. Although the
  cost of Web sites is perceived to be high, more
  than 60 percent of Realtors have a personal Web
  site, either their own or through their brokerage
  
• Usage and availability of Internet Data Exchange
  (IDX) technology are increasing, especially among
  larger firms, the survey reported. IDX is a
  broker option to display advertising of active
  listings on another broker's Web
  site.(5)iHomefinder - Real Estate MLS IDX Website
  System

8
Internet Real Estate and Competition

• Currently the belief is that Real Estate internet
  has no future competitor. The only current
  competitor is actual Real Estate companies.
  
• The internet is used by residential home buyers
  and sellers to obtain the best home for their
  money.
  
• The pros to using the internet for real estate is
  that you can find a perfect house without leaving
  home and it also allows you to find the best
  price.
• Another pro is that the internet will force
  sellers to be very detailed about there home and
  to make sure that all maintenance is up to date.
  
• The cons is that the internet can be bogus due to
  picture enhancements and the inability to see the
  details of a home.
  
• Another con is that using the internet may
  inaccurately price homes for buyers and sellers
  because homes that are similar may be priced the
  same but in reality are different.(6)Real estate
  brokers and sales agents

9
The Internet and beyond

• The internet will always be number one and there
  is the possibility for the internet to become the
  exclusive agent for homebuyers and sellers.
  
• The next step seems to be using EBay to sell your
  home over the internet.
  
• Other possibilities for the future include people
  buying homes with out the use of internet agents
  sole between buyer and seller.(7) Kiesha Lee
  

10
Conclusion

• Internet business is booming up to 71.
• The use for (actual) real estate agents will
  decline.
  
• There will be more efficient process for buying
  homes.
  
• Real Estate began with Thomas Jefferson buying
  the Louisiana Territory in 1803.
  
• The real estate industry is getting crowded, lots
  or realtors and less money, therefore the
  internet is hurting business.

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Bibliography

• http//www.aolsvc.worldbook.aol.com/wb/Article?id
  ar286800stThomasJefferson
  
• E-Commerce Overview Series Real Estate
  Development
  
• John Jacob Astor
• iHomefinder - Real Estate MLS IDX Website System
• Nearly 40 Percent of Home Buyers Use Web

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Contd.

• Impact of Internet on real estate market WWW IT
  Facts
  
• http//aolsearch.aol.com/aol/redir?srcwebsearchr
  equestId50f0fc65cc64a69bclickedItemRank6userQu
  eryRealEstateclickedItemURNhttp3A2F2Fwww.ir
  ed.com2F
• Keisha Lee, Coldwell Banker Cascade Realty (770)
  944-9440