Real estate development is a very wide field with many elements, resources, terms, and figures. Many people are afraid to start their journey in real estate for fear of failing due to lack of information. That is why this article has compiled a list of the most common real estate FAQs and will give you comprehensive answers for them.
All Your Real Estate FAQs Answered
Real estate FAQs stem from the need to know and understand the market people are dealing with.
Whether you are a seller, a buyer, a developer, or an agent, you will find all the answers to your most common questions.
How The Real Estate Market Works?
The real estate market is one of the forever growing ones even if it passes by recession times but its general trend is continuous growth.
Any market is created due to a need, and thanks to the growing populations all over the world, a growing need for housing units as well as commercial and administrative units to serve these populations is constantly found.
This is what created the need for a real estate market, and since any market depends on supply and demand, the real estate market works according to supply and demand interactions.
Also, the main dynamics of the real estate market depend on developing properties and selling or renting them from the seller or the developer side.
From the buyer side, the process includes buying a new property or even investing in real estate through selling or leasing a pre-owned property.
What Are The 3 Most Important Things In Real Estate?
Real estate is a wide field that has daily updates; however, among the most prominent factors in deciding on the property you should buy are:
- Location (considering ease of accessibility and the neighbourhood in which you will be living)
- Funding (the budget for purchasing and renovating if needed)
- Investment potential (how it will hold its value over time and in case you wanted to use it for investment in the future, how would be its return on investments or ROI )
How Much Is My House Worth?
The market value (and accordingly the monetary value) of any property is decided upon a number of elements, which are:
- Location (some areas have a higher price range than others)
- Size and layout
- Condition (new, old, renovated, needs renovation)
- Market demand (based on the time and season in which you are offering your property)
A real estate expert can help you determine the most suitable value for your home.
What is a Developer in Real Estate?
Real estate developers buy new lands, develop projects over them, and sell them for profit.
Discover the top real estate developers in Egypt!
Do Real Estate Developers Need a License?
Yes, a real estate developer needs to be licensed and authorized by the authorities of the country they operate in to be able to proceed with their work.
A non-licensed developer is stopped and pays a fine.
How Do Real Estate Developers Make Money? What is Real Estate Development Business?
A real estate developer acquires a land over which they build or develop a residential, commercial, or mixed-use project according to market demand.
Later, their profit is generated by selling or renting properties at the projects developed.
What is a Real Estate Consultant?
A real estate consultant is a professional with experience in the real estate market and can give expert advice on buying, selling, and investing in properties. This helps the real estate buyers and investors make well-informed decisions.
Usually, real estate consultants can be categorized according to the type of real estate: residential, commercial, and administrative.
Don’t forget that Nawy has a qualified team of property consultants whose main job is to offer you expert advice about the property you plan to buy.
What Does a Real Estate Agent Do?
A real estate agent helps make the process of selling and buying real estate properties an easy, smooth one and takes a commission when the deal is closed.
Real estate agents play many pivotal roles in the process of selling and buying, which include the following:
- Connecting the buyer and seller together
- Arranging property transactions
- Representing any of both sides
- Making sure the process goes smoothly till the deal is closed
What is a Real Estate Commission & Who Pays It?
A real estate commission is a pre-negotiated percentage of the property’s selling price. It is calculated to be given to the real estate agent who works as a linking point between the buyer and the seller after the deal is done and closed.
If you are purchasing from a real estate development company, it pays the agent’s commission. However, if it is a resale unit, usually both parties pay a percentage.
It is worth noting that when purchasing with Nawy, whether it is a primary or resale unit, you won’t have to pay any extra fees.
Do Real Estate Agents Make Good Money?
Generally speaking, yes, real estate agents do make good money and get very good earnings. However, how much they earn is based on many factors, including:
- Negotiation skills
- Market demand
- Commission rates in a certain country/area
- Property type (residential, commercial, administrative)
- Level of experience
What is Property Management in Real Estate?
Property management is one of the prominent terms in the real estate business. In simple terms, it means the process of administering the property at hand.
It is usually a process done by a third party for the sake of the property’s owner’s profitability (either by looking after their property or by investing in it on their behalf).
This process might include the following:
- Arranging rentals
- Handling tenants
- Monitoring day-to-day operations involving the property
- Handling maintenance
This property management process types vary according to the type of property of question into residential, commercial, and administrative property management.
How to Start a Real Estate Company?
Starting a real estate business involves many steps, including:
- Conducting marketing research to know the market gaps and offer solutions for it with your business
- Having a business plan that includes the business model, the cost structure, and the revenue calculations
- Licensing and getting approvals and going official
- Building a team and hiring people
However, these steps can be cut short thanks to Nawy’s product, Nawy Partners. This product helps brokers to grow, work with the largest developers in Egypt, and get high commissions.
Read more about Nawy Partners here: Nawy Partners: Enhance Your Sales & Get Higher Commissions
How To Get Real Estate Leads Without Cold Calling?
Using digital marketing, including content marketing and ads, either through social media, Google ads, or SEO practices.
Also, painting a wide network ensures having referrals and potential customers.
Finally, don’t forget that this is exactly what Nawy Partenrs offers; leads without cold calling!
How To Invest In Real Estate?
You can invest in real estate through:
- Flipping houses (buying a house to renovate it and then selling it at a higher price)
- Renovating and renting houses (what exactly Nawy Unlocked does)
- renting your property
- Joining REITs (real estate investment trusts, which are considered small real estate companies in which you buy shares and get profit accordingly)
- Fractional investment (you can easily do that by buying a share with Nawy Shares)
How To Get Money To Invest In Real Estate?
You can get money to invest in real estate through savings and bank loans.
However, there are easier ways, including fractional real estate, which is the best option if you don’t have a huge capital to start investment with. Simply put, fractional real estate means investing in a part of a property, not the entire property, the option that is offered by Nawy Shares.
Thanks to Nawy Shares, any property is divided into a number of shares, and you get to choose how many shares you want to invest in according to your budget.
How To Succeed In Real Estate Investing?
Marketing research, securing a budget, getting expert help and advice from real estate consultants, and well-trusted platforms.
How Much is the Real Estate Industry Worth?
The real estate industry is a growing one worldwide with an expected rounded net worth of US$654.39tn by the end of 2025.
However, concerning Egypt’s real estate market is a growing one as well, with an expected net worth of US$1.58tn by 2025, according to Statista.
How To Calculate Rate Of Return On Real Estate Investment?
Return on investment is calculated according to the following equation:
ROI = (Net Profit / Investment Cost) × 100
What Is Real Estate Mortgage?
A real estate mortgage is a loan used to fund real estate purchases and is repaid over time with an installation plan.
However, Nawy Now is a product by Nawy that offers a way more flexible mortgage system in which that helps you will be able to move into your new house immediately, which Nawy will finance, and pay your instalments with a flexible payment plan to Nawy.
Learn more about Nawy Now from this article: Learn About the Nawy Now & Mortgage Finance Fund
How Technology Is Changing The Real Estate Industry?
Thanks to technology, real estate dynamics have now become digital and more easy and seamless.
Technological advancement helped integrate artificial intelligence (AI) in real estate solutions such as:
- agumanted reality (AR) virtual tours
- 3D property exploration tools
- AI-driven real estate business analytics
How To Invest 100k In Real Estate?
Investing 100k in real estate can be done through fractional investments, such as buying a share with Nawy Shares.
How To Buy Real Estate?
You need to identify your needs and preferences, decide on your budget, and start looking for the real estate agent, developer, or listing platform you will be dealing with.
How Can I Successfully Sell my Property?
Selling a property implies finding a real estate agent who will help you price it, market it, and find the best buyers for it.
How to Choose a Real Estate Agent for Selling?
You need to research trusted real estate agents with proven track records to help you sell your property.
You can easily sell your property through Nawy’s platforms.
What Do I Need To Look Out For In A Real Estate Purchase Contract?
A real estate purchase contract has many important terms and conditions, but what is most important, and you should check, is the following:
- price
- payment plan
- property details and description
- delivery date
- legal terms
It is advised to get the help of an experienced real estate consultant or a lawyer.
Take Action Now
By now, you know the answers to almost all the common real estate FAQs, and you are ready to start your journey in the real estate world.
But don’t forget that Nawy is here to help you buy, sell, and invest in a property.
Fill in the form to get in touch with one of our property consultants, and they will do the rest.
