1.1 Real Estate Professions

Professional Specialties in Real Estate

The real estate industry is made up of professionals who specialize in different functional areas. The six primary functions are:

• Creating: Developers, market analysts, planners, surveyors, architects, engineers, building contractors, inspectors, space planners, mortgage brokers, lenders, bankers, securities companies, title & escrow companies, attorneys, insurers, appraisers, real estate brokers and agents.
• Managing & Maintaining: Property managers, asset managers, maintenance engineers and technicians, corporate managers.
• Destroying: Demolition contractors, excavators.
• Holding: Investors, corporate managers.
• Regulating: Assessors, public planners, zoning administrators, building inspectors.
• Transferring: Brokers and agents, appraisers, lenders and bankers, mortgage brokers, title & escrow companies, attorneys, insurers, surveyors.

Many professionals also specialize by property type. Properties are commonly classified as:

• Residential: Owned and used for habitation (single-family homes, condos, etc.).
• Commercial: Retail, office, and industrial properties generating business income.
• Investment: Held for investment purposes, often not owner-occupied (apartments, residential income properties).
• Other accepted classifications: Industrial, farm and ranch, office, special purpose (schools, churches, government buildings), retail, land.

These categories can overlap. For example, a bank may serve as both a retail and office property, and an industrial facility may have office space. Special purpose properties include recreational facilities, government buildings, churches, and schools.

Check-In Questions

• Which of the following is NOT one of the six primary real estate functions?
  Creating
  Managing & Maintaining
  Cooking
  Destroying
  Show Answer

  Correct Answer: Cooking
  “Cooking” is not a primary real estate function.
• Which property type is typically used for habitation?
  Commercial
  Residential
  Industrial
  Retail
  Show Answer

  Correct Answer: Residential
  Residential properties are designed for people to live in.