Real Estate Structuralism

There is an underlying structuralism to real estate.

In literary criticism, “structuralism” is the analysis of a system’s structure and whether it is a closed or open system, and how all the parts in the system interact. Structuralism is a theory, although, not a new one, applied to studying the work of a particular author. We know that there is a structure to the world around us, and to the universe, and that there we all belong to a powerful system, as do all living and nonliving things. Therefore, structuralism is about life, and everthing in it. It demonstrates that there is a science to real estate, to the event of buying or selling a piece of land with a building on it. To understand science, the science or anything, you have to understand the vocabulary. Below I discuss terms to help analyse the structure of real estate, so we can view and analyse the real estate system, which we can call, operating system. The result is having the knowledge of how real estate is formed, or structured, and therefore how it works.

Since technology allows for a fuller understanding of the subject of structuralism, I will use terms that may not have been used by the early structuralists.

We start with a system, or Operating System.

For a system to be a system, there must be inputs, processes, outputs, and feedback. This forms one cybernetic structure. In real estate, the inputs are associated with the desire and need to buy or sell property. There is a process involved in buying and selling real estate, and there has to be a process or the operation or the real estate transaction fails. The output is what occurs as a result of proper inputs and functional processes supporting the inputs, and developing the inputs. The feedback is the happy ending, but which continues the cycle since buying one home, is not the end. Real estate is an unending cycle, always in motion. Markets change. We have buyers markets, sellers markets and normal markets, but real estate is always in movement, never resting, for where there are people, there is the demand, necessity and desire for real estate.

A system cannot operate without laws, rules and principles. In real estate, there are national laws, regional laws, state laws, local laws and ordinances. There are homeowners association bylaws, condominium bylaws, zoning laws, laws that govern mortgate loan processes, laws that govern real estate agents, laws that sellers must adhere to. Real estate is highly regulated as it is a complex system, with many, many parts or players. The Statute of Frauds states that real estate contracts must be in writing for the contracts be be enforced. Documents have to be signed. This brings the element of order to the transaction.

There has to be ORDER. Order has to do with how the components in the system are arranged and organized. Just view each role each player has in a real estate transaction. If one piece of the transaction is missing, that could be devastating. There could be disorder resulting in an upset. This is not good!

Is the system Open or Closed? Is there anything external to real estate that ifluences the buying and selling process? Why certainly there is: the world, national, regional, and local economy. The supply of houses and the demand for houses. Real estate is not a closed system. It is not a fixed system. It is always influenced as well as influences the environment around property.

Categories are according to Webster, “defined divisions in a system of classification.” Categories are tools within the order of the open or closed system. In real estate, there are categories of architectural types of dwellings: single family, duplex, townhouse, condominium, office building. There are more specific catefories, such as categories of single family homes: Ranch style homes, Cape Cod, Tudor, French Colonial, Contemporary, Victorian, Bungalow, etc. There are divisions within the mortgage industry, and type or categories for loans: fixed rate, adjustible rate, interest only. The examples go on and on. There are also categories of buyer types seller types.

The Helpers in the system of real estate are the support mechanisms working together to get the real estate transaction closed and settlement reached. Real estate agents are the big helpers in a real estate transaction bring all the parts together harmoniously and coordinating the activities of the helpers.The stumbling blocks met along the way, and there usually are one or more, are the Enemies. Real estate agents try to prevent, and resolve issues, and that can be a challenge in some cases. Sometimes the enemy may be the other party as in the case of a seller refusing to cooperate with the buyer, or the buyer not being open, honest and fair with the seller.

In real estate as in any system there are symbols. These symbols can be object, subjects, the helpers and the enemies. A real estate sales contract, or purchase agreement is an honored tool or symbol. It is the keynote speaker in the system. It sets the agenda, the pace, and the to dos. the MLS is a symbol of the agent’s knowledge base of property data, and market forecasts. It is the indispensable tool that aids the helper, the real estate agent. Another symbol is the mortgage contract. Another is the deed to the property. There are many other symbols too.

How we view real estate as a whole or locally is our paradigm, or worldview. Buyers and sellers view property in differents depending on which role they are in.

I hope this provides a clear picture in thought of a complex system’s structure, that of real estate in this example. The real estate system never ever stops, or rests since where there are people, there is the need and desire for shelter, but not just a ceiling, door and walls, but a whole lifestyle. Real estate works in synergy with the whole fabric of human lifestyles, and economics. We all are players in this system. We all have roles.   Some players are more involved, and more directly impact the system than others. Real estate is a very strong, I would say the powerhouse of the world, and of our lifestyles.

Kenneth  Fach, REALTOR, ePRO
Weichert, REALTORS-Anchor
1607 Village Square Boulevard,  Suite B 103
Tallahassee, Florida 32309
Direct/Text  850-339-5753  Blog: http://KennethFach.wordpress.com

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