Top Procurement Challenges for the Real Estate Services Industry
The global real estate industry has witnessed a substantial flow of investment capital and generates billions of dollars worldwide. The management of such a vast market has spurred the growth of real estate services market. Real estate for commercial purpose requires professional services of consultants, brokers, and agents to make an informed decision before spending […]
READ MORE >>The global real estate industry has witnessed a substantial flow of investment capital and generates billions of dollars worldwide. The management of such a vast market has spurred the growth of real estate services market. Real estate for commercial purpose requires professional services of consultants, brokers, and agents to make an informed decision before spending hugely on the property. Companies need real estate services to scout for properties, consult for the best-fit, and finally brokerage a deal. Real estate transactions involve a lot of complications along the line, and real estate service providers face problems with procurement and logistics. Here are some of the major procurement pain points in the real estate professional services and agents and brokerage services market:
Real Estate Professional Services
- The real estate industry is characterized by the presence of many rules and regulations which change on a frequent basis. As a result, companies find it difficult to keep up with the changing regulatory landscape, which might harm the brand in case of non-compliance
- It is challenging to find a supplier who thoroughly understands the buyer’s requirements and provides customized services. Even though buyers choose the best supplier by implementing RFD and RFP processes, they may not be able to fill all the blanks
- Occasionally, buyers fail to define the scope of their real estate services requirements. It is challenging for real estate service providers to understand industry-specific requirements and devise a range of services in the portfolio
Real Estate Agents and Brokerage Services
- Although providers of real estate services charge a small percentage of the total transaction value as commission fees, it still amounts to a large Since some supplier possess exclusive transaction rights the bargaining power of the buyer is seriously compromised
- One of the biggest challenge faced by the buyer is finding a supplier with extensive knowledge about properties. It’s challenging to find a supplier who displays extensive knowledge about factors such as load, loss, and common area factors
- Prices in the real estate market fluctuate In addition to that, room for negotiation makes it hard for the buyers to identify real estate services provider who can give insights into every aspect of real estate investment
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