As the opening up of the real estate market gets into full swing, the domestic real estate market these days has face with difficulties in a competition against foreign composite real estate companies with massive amount of capital and advanced method...
As the opening up of the real estate market gets into full swing, the domestic real estate market these days has face with difficulties in a competition against foreign composite real estate companies with massive amount of capital and advanced methods. Real estate business in advanced countries has been driven by composite real estate companies which provide comprehensive services such as accounting, taxation business, laws pertinent to real estate, marketing, and finance based on massive infrastructure combined with grave information and experience. In particular, emergence of composite real estate companies has helped the business to produce huge amount of value-added benefit by utilizing the most appropriate area, and it is expected that the business will be grown to one of future businesses.
However, the domestic market has yet kept up with the changes in the real estate market in advanced countries. Since the government does not recognize the importance of the real estate business, the business is run by mostly small-sized companies. After Asian financial crisis in 1997, since too many licensed real estate agents have been nurtured, the real estate agencies have been sprouted. Also, the number of people who think that they are going to work as a real estate agent after their retirement is on the rise. Because of this increased number of people who are willing to work in the business, most of commercially good places are occupied by real estate agencies. What is more, laws and systems that deal with the real estate market are yet to be fully established, and some of agencies do not hold firm concept about real estate business causing confusion over the market.
This study aims at suggesting the way that the domestic real estate franchise system should pursue in the future based on problems featured currently after examining the background of domestic real estate franchise system and foreign systems with basic theories on franchise and real estate business.
The specific area of this study is current challenges and problems that real estate agencies out of real estate business are faced. The study has been conducted after examining overall specialties of real estate business and the current real estate market. After looking into the current situation of real estate franchise critically, problems and ways to resolve the problem were suggested in this study.
To successfully launch the franchise system, how effectively reduce errors and adverse effects in the process matters most after reinforcing adoptability of the system to the domestic politic, economy, society and culture. To do so, there should be clear-cut understanding towards the domestic real estate market preceded, and based on that, systematic, economic and social measures should be prepared.
Franchise is one of business operational system that can help both franchisers and franchisees to get benefit. By introducing franchise system into the domestic real estate market, foundation that agencies can cooperate with each other and exchange information can be set up, and further more, the chronic problem of domestic real estate market, which is speculation and illicit transactions, are expected to be removed.
To reap the expected effect, it takes more than real estate franchise's efforts. Customers' culture should be changed. Also, like all other systems do, laws and systems related to real estate should be reformed to make sound transaction environment and for smooth operation. In particular, the existing contract policies that are in favor of franchiser should be revised to be mutually beneficial. Then, franchisers and franchisees hold equal right and responsibility which are sure to contribute to the development of real estate franchise business. To establish sound culture in the real estate market, it is time for people to consider introducing franchise system into not only real estate agencies but also overall real estate market.