What Are the Different Problems Faced by the Real Estate Agents in Melbourne?

 

 

 

 

 

 

 

The Usual Problems of a Real Estate Agent:

 

a)     In Melbourne, main problem arises when the clients are not financially stable. Many buyers are not able to sanction a loan from the banks. In fact, even with minimal rates they are not able to qualify for mortgage financing required for sealing a deal. According to the Accrue estate agents in Melbourne, it is very problematic for self-employed clients to get hold of a suitable loan. When a potential customer is not able to pay for the property, it results in immense frustration and disappointment for the real estate agent. All the hard work and data collection is deemed useless and he has to start all over by looking for a new client!

b)     The low rate of property appraisals is becoming a serious problem in the real estate industry. As stated by the Accrue estate agents, this decrease in the appraisal of a suitable property can pose as a problematic barrier in the way of a smooth transaction. Due to an unforeseen change in the real estate scenario, the proposals that are supposed to encourage impartial appraisals sometimes backfire for the real estate industry. As a sad consequence, the market value of the properties drops significantly, thus preventing the sales of property. Honestly, many real estate agents who are supposed to earn more, sometimes actually lose their jobs due to this sudden change in the fluctuating market condition.

c)      The advent of a distressed inventory might affect everyone in the real estate industry. Due to unfavourable market conditions, the number of qualified buyers may significantly decrease.

d)     Many banks might decrease the lending limit and not cooperate with the clients. The lenders might impose strict guidelines that will not facilitate real estate loans. As a dire consequence, the market situation teems with excessive inventory, exciting interest rates and very less potential buyers! The individual investors take a backseat as the institutional investors rule the real estate market. The change in market value gives rise to foreign investments, multiple hedge funds and also private equity buyers.

e)     If the real estate brokers decide to shut down their business of lending, the financial condition will suffer profoundly because there is a dearth of lenders for clients who need it.