Section 1 Summary
Now is the time to stop pursuing wealth brought by marginal profits from different market prices of real estate and to seek efficient utilization of limited land. Optimal utilization and development of real estate is preferred to p...
Section 1 Summary
Now is the time to stop pursuing wealth brought by marginal profits from different market prices of real estate and to seek efficient utilization of limited land. Optimal utilization and development of real estate is preferred to possession of land due to dramatic changes of factors in socio-economic circumstances domestically and abroad, which requires discreet and systemic real estate development.
The public is lacking in expertise or experience in this respect and need help from experts of real estate urgently. Real estate consulting can be defined as a service which provides proper ways to solve the problems occurring under these uncertain circumstances.
Nowadays, the importance of real estate consulting for social and public interest is greatly recognized. Many countries try to foster real estate consulting as a professional occupation not leaving it to take its own course. And for this, qualification system for the consultants is operated and their business supervised by the governments. In light of the importance of real estate consulting, favorable environment should be created which is necessary for the growth and development of the industry. To utilize real estate efficiently, comprehensive investigation should be done including market plan, construction plan, tax, finance and overall economics.
Expertise and experience in real estate consulting is needed to provide right advice for the customers for their lands since optimal development of a real estate depends on its shape or location. Once real estates are developed, modification of them is difficult due to their features, which justifies careful development planning.
However the circumstances of the country do not satisfy the requirements. System and institutions for real estates are poorly established that a great number of consulting agencies are appearing in a short time. They do not have enough expertise and experience in real estate consulting, which results in confusion of the market, raising apprehensions of the concerned. If the confusion of the market is continued without any interference from government, it is not beneficial to either the public or government or the industry.
The objectives of current study is to consider the basic theories of real estate consulting and compare and analyze the states of U.S. and Japan with ours to identify problems of our rudimentary industry and provide solutions for the problems to improve and activate real estate consulting.
Section 2 Suggestions
The intention of this study is to compare and analyze the state and cases of real estate consulting in foreign countries with those of Korea and to identify the problems of real estate consulting in Korea. Here are some suggestions for the industry.
First, institutional support for real estate consulting is poor.
It can be said that economic loss of the consumers has been enormous due to thoughtless trial and error of the authorities. To provide quality service to the consumers, institutional support system should be promptly established including qualification system for the consultants who have significant professional experience and the ability of analyzing information.
Secondly, the distinction of real estate consulting business is ambiguous and the recognition of the industry by the public is still low.
Real estate consulting agencies have been established by the concerned industries including real estate brokerage industry, real estate appraisal and estimation industry, trust industry and construction industry and each industry claims its vested rights in this business causing serious confusion. Furthermore, windfall income has been sought through speculative trades of real estate in past, leaving unfavorable image of the industry to the public till now which should be eradicated from them.
Lastly, an integrated system of real estate consulting should be established under the lead of government to prevent problems due to claims of vested rights and confusion of business distinction. Without initiation and guidance of government it is impossible to establish and settle the system, therefore, the intervention by government is necessary until the system is fully settled. Therefore, I hereby provide some suggestions for this:
First, institutional system and theoretical foundation should be established for real estate consulting business.
The distinction of consulting business field should be made manifest and rigid qualification system should be established with a special selection device applied to those who have substantial working experience in the industry or who have academic degrees of master or higher in real estate consulting science. For special selection, some ways to differentiate the applicants should be used such as foreign language ability test or others.
Secondly, it is required to improve specialty and establish morals of profession.
Real estate consultants have to be equipped with proper knowledge as a professional person of high-level academic knowledge and experience. As the real estate consulting business becomes complex and diverse, only legal regulations are not sufficient for control of the business, therefore, consultants of proper qualification should be trained.
Thirdly, the business area of real estate consulting should be differentiated and specialized.
Real estate consulting service is now provided by those concerned with real estate including real estate brokerage, real estate appraisal and estimation, trust, construction, superintendence and service corpse as a side business. Differentiation of real estate consulting as an independent business by government should be established. Also, real estate consulting agencies now appearing in great numbers should be qualified, authorized and registered by the government or public institutions with some criteria so that public confidence in those agencies can be maintained and the industry can be specialized with politic support.
Fourth, the ways for management rationalization should be actively put into place by the industry, including establishment of organic cooperation system with the concerned types of business, realization of consulting system establishment, development of consulting techniques, providing full services, construction of information network on Internet and enhancement of foreign competitiveness.
With the change of real estate environment, real estate consulting business has been established as an important area in the real estate service domestically and abroad. The importance and need are as more important due to its feature - that is, once developed it is difficult to modify. For these reasons, the real estate consulting business can be considered as a specialized business, which requires more sociality, publicity and logicality than any other businesses.
The real estate consulting business in Korea is little changed from the first step. This causes various problems. As shown in the above-mentioned, I suggested several problems including systematic imperfection of the real estate consulting business, improvement of specialization, lack of specialized human resources, confusion in the division of business regions, and lower recognition. Plans to solve these problems are required promptly, and we should keep in mind that our current level of the real estate consulting may cause the demanders to disregard it.
For the real estate consulting business in Korea, not only professionals in logical and practical real estate fields but also general people can start business without limitation, and the real estate consulting companies with insufficient with insufficient specialized information are mushrooming. For these reasons, the real estate consulting market expects to be disordered and confused. Most consultants are not specialized in the real estate consulting yet due to lack of systematic education about real estate and insufficient practical experiences. And, it is impossible for these companies to provide specialized consulting services, as they are small in their size of capital.
Under these conditions, as a plan for activation of the real estate consulting business, the related laws and regulations should be prepared to gain specialization of the real estate consulting business. If requirements of the real estate consulting and the consultant are institutionalized, disorder and confusion will be removed in the industry, reliability from people will be gained, and demands on the good quality service will be satisfied.
In addition, as a plan to improve quality of real estate consultant, it is considered as reasonable to perform a qualifying examination system. Applicant for the examination should have certificate in the related fields to real estate such as a licensed real estate agent, certified appraiser, architect as requirements, and have experiences in practice. If the certificate system is established, specialization will be improved by differentiating business regions with the unqualified consultant, and confusion in business regions of real estate consulting business will be removed somewhat.
Furthermore, as a plan for scientific and specialized service to satisfy demands on quality service, performing education program for real estate consultant and working-level education system, building real estate statistical analysis system, and opening and sharing real estate information should be prepared. If these system are built, foreign competitiveness will be strengthened, faults by poor information will be prevented, real estate consulting will be performed effectively, and ultimately the real estate will be used effectively. Besides, works will be performed scientifically and systematically. The Industry, academic world, and government have studied seriously to activate the real estate consulting business, but they have not made a clear conclusion yet. The reason is that it is difficult to find reasonable answers for each industry to sympathize due to complex concerns. There can be no gainsaying that the systematic plan should be prepared to establish the real estate consulting business.
In conclusion, I studied plans to improve the real estate consulting business. But the results can be faulty or wrong due to features of the subject including opinions, insufficient record materials and time in studying and investigation, and insufficient my ability. In future, further deeper studies on this field should be continued for improvement of the national economy.