King bell
VIP Contributor
In real estate, a commodity is a term for something that is exchanged for goods or services. In other words, it's basically anything that can be traded on the market. So, what types of commodities can you trade in real estate? You could trade things like homes and buildings if you're an investor or property manager. You could also sell building materials such as bricks and lumber to homebuilders, contractors, and homeowners alike. But one of the most popular commodities to trade in real estate is land. In fact, many investors speculate that real estate is really just a commodity traded on the land. But even though land is a commodity, trading in property probably shouldn't be mistaken as trading in any ordinary commodity. Because homes and buildings still require construction and management while land can (and should) be used for other things such as agricultural, commercial, industrial, or residential development. The important thing to note is that it's not just about the material you're trading in; but rather what you're trading it for. Land can be used for almost anything and because of that, a wide variety of other commodities could potentially be traded in real estate.