Real estate is broken down into categories (classes) and sub-categories (types) depending on what the zoning allows for its usage. Residential, vacant land, multi-family, land, farm and ranch, commercial, lease, and timeshare/fractional deeds are separated and further classified into different types. This system allows clients and RealtorsⓇ to easily sort and view properties for each need.
Classes & Types of Real Estate
These are the seven classes used in our local MLS (multiple listing services) system which divides property into main uses. Within each class, there are sub-categories called “types” that further define the property.
Residential
The most popular category, the residential class encompasses any built structure zoned for living in. Residential listings are what class homebuyers are looking in and what existing homeowners would list their home under. It includes all prices, all locations, and sizes. This class is used for primary residence, vacation home, and investment properties. Different types of residential include:
Stick Built is the traditional home type that is constructed by contractors from raw materials from the ground up
Condo/Townhouse is the main type used for condominium and townhome listings. Because there are differences between the two, there are individual condo, condotel, and townhouse types
Manufactured/Mobile homes are originally built on a chassis with wheels and can be towed and kept mobile or set up on a permanent foundation on private property or in a mobile home park. Modular homes are brought to the final homesite in parts and the final assembly is completed onsite.
Multi-family
Still zoned for residential use, multi-class differs because it allows for multiple dwelling units. These can include duplexes, triplexes, up to multiple unit apartment buildings. These different sizes of complexes are permitted to be occupied by multiple residents. Single family homes with accessory dwelling units (ADU) are not classified as multi-family because the parcel is zoned for single-family use and the ADU is approved via permit application and added in addition to the single family home.
Land
A listing in the land class identifies it as vacant land, typically without any home foundation or structure. Some parcels may include access, utilities, and outbuildings; but without anything deemed livable. This class is further broken down in types to include nearly every class from residential and multi-class to commercial and agricultural use and more unique uses such as mining claims, industrial, and RV.
Farm & Ranch
Common in rural Southwest Colorado, farm and ranch properties offer an opportunity to house farm animals including horses, cattle, sheep, goats, llamas, swine, and more as well as acreage for agricultural purposes such as grazing, orchards, gardens, or other crops. Farm and ranch land varies in size from just a few acres to thousands. Some listings include structures such as barns and arenas while others can include residences or no buildings whatsoever defining the two types: with residence or no residence.
Commercial
Commercial property is specifically for office, retail, warehouse, and other business use. These properties cannot be utilized for primary residential purposes even though they sometimes include kitchens, laundry facilities, and other common amenities. One caveat is a mixed-use commercial with residential meaning both a business and residence can be utilized here. There are multiple business opportunities that include residential-like uses like hotel/motels, mobile/manufactured home parks, and RV parks. Other commercial types include restaurants and parking.
Lease
The lease class can be used for all of the other classes of property that are being rented instead of sold. The type is always lease but the lease type defines what use the property is zoned for (residential, commercial, etc.). Some lease prices are all inclusive while others don’t include utilities or HOA dues.
Timeshare/Fractional
A common offering for resort area condos, timeshare/fractional units offer a unique shared ownership opportunity. These can range from one to 12+ weeks in a year where you can utilize the unit as a personal getaway. Since these are typically in a resort-style complex, HOA dues are an additional cost but generally include utilities, amenities, and more. Some timeshares can provide access to bigger exchange programs where owners can trade weeks in other locations. There can be additional fees as well such as exchange and annual maintenance fees.
Mixed-use is a unique opportunity that applies to some properties. For example, a home (residential) may also be situated on 200 acres complete with a pasture and barn making it applicable to be listed in farm and ranch too. Another situation could be a commercial property for sale (commercial) and available for lease (lease). Typically, there will be two separate MLS numbers, one for each listing in each class, highlighting those specific use features. Your trusted real estate broker will understand these classes and be able to best market your property for you.
No matter what sector of real estate you are buying or selling in, The Durango Team at The Wells Group is a local team with knowledge to best guide your transaction. With so many options available, we would be honored to have your trust in supporting your real estate journey. Please don’t hesitate to contact us for more information today.
Start your real estate search here.
