How is the real estate industry regulated?

How does the government regulate real estate?

Excluding external economic factors, the impact government has on property falls into two categories: building codes and zoning regulations and public goods and services.

Who regulates the real estate business?

The California Department of Real Estate (DRE) is the state agency that licenses real estate brokers and salespersons. The California DRE also investigates complaints and disciplines practitioners who violate the law.

What has the greatest impact on the value of a property?

A home’s size has a major influence on its value, with some prospective homebuyers looking specifically at price per square foot to filter out this effect and determine value. Bigger houses tend to sell for higher prices, of course.

Is real estate heavily regulated?

The real estate industry is no exception. An extensive array of federal, state, county and municipal regulations — variously interpreted and enforced by regulatory officials — govern urban planning, land and infrastructure development, and building construction.

What brings down property value?

Having short sales and especially foreclosures on your street decreases the value of your home. Even if they are not direct comparables, as in same square footage and the number of bedrooms and baths, they are in your immediate neighborhood, so can make the entire area depreciate in value.

What makes property valuable?

Supply and demand

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The law of supply and demand you learned in Economics 101 plays the most significant role in home value movements. Property values rise when a low supply of homes for sale meets strong buyer demand, as buyers compete in bidding wars to secure a home from the limited inventory.