Real Estate Industry
and Its Drawbacks

Real estate industry is looked upon by many as the best window for safe investments.

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Real Estate Industry and Its Drawbacks

Real estate industry is looked upon by many as the best window for safe investments. When there is a boom in this industry, the prices go high up and this generally happens ...

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The services rendered by the brokers operating in the real estate market are really profound. There are many sellers and buyers in the market and these brokers do the ...

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There are many sellers and buyers in the market and these brokers do the awesome...
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Emotional barricades

selling a house is a biggest and the toughest decisions in life. The seller, who has spent most of his lifetime here might be...

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Market conditions

Not all the market conditions and situations prove to be favorable to the buyers and sellers. It is very important for a buyer and seller to ...

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Real Estate Industry and Its Drawbacks

Real estate industry is looked upon by many as the best window for safe investments. When there is a boom in this industry, the prices go high up and this generally happens when the demand goes high. But when there is a drop in the prices due to poor demand the industry suffers and in turn, the economy suffers because this sector plays an important role in the development of an economy. Though we look at it as a very rich and flourishing field, it is also important to understand the visible drawbacks with this sector to make our investments meaningful and fruitful.

Most of the investors get attracted by the welcoming prices offered by this field once in a while and this is where they get trapped. In the greed for making a smart investment, they overlook the disadvantages of this sector and hence at the end sometimes land up in problems. To avoid such situations, here is a list of some of the common demerits that this industry has which can also be found at FoleyHomes . This is listed down mainly keeping the investors in mind and help save them from the pitfalls because it is money that is getting invested here and it is not just one or two pennies but lakhs and lakhs of money and hence this concern.

  • Market conditions – not all the market conditions and situations prove to be favorable to the buyers and sellers. It is very important for a buyer and seller to do an extensive research about the market before taking a decision since, as already said, this is a highly fluctuating market wherein the prices go up and down drastically. The market does not favor the buyers and sellers at all the time and hence researching and spending some time in understanding the market is considered very important. So when you do not sense an ideal and conducive situation, do not break your head with the investments here for it might only end you up in a huge loss and nothing else.
  • Emotional barricades – selling a house is a biggest and the toughest decisions in life. The seller, who has spent most of his lifetime here might be very close to it and hence selling it might make him very emotional. A change in place or a move on is something that might be a difficult one for the seller which in turn becomes difficult for the broker too because they find it difficult to tackle and handle the seller and his emotions. A broker or a real estate dealer should be ready to handle such situations and be ready to tackle such situations wisely.
  • Pricing – pricing is an important factor in the real estate industry. A decision for the purchase or sale might be taken but the ultimate purchase or sale happens only when this pricing part is finalized. This is where the brokers play an important role. This is one of the most crucial parts of the entire dealing. There arise differences here between the buyers and sellers and after an elongated discussion and compromises there comes a final decision on the final prices.
  • Tackling unrealistic buyers – similar to the number of realistic buyers, there would also be some unrealistic buyers who want everything for nothing in return. Such buyers are the biggest challenge for the brokers in this real estate sector. They always try to buy a house for a price that has no value and agrees to pay just peanuts for a worthy property. Such buyers do not enter the market with a buying mind but just try to play with the market whiling away time and also wasting the broker`s time in unprofitable dealings.
  • High competition – real estate market is a very huge and vast one. The number of players here is more and hence there is always a high competition between the buyers, sellers and the brokers. Here it is the brokers who face a tough competition in getting a property sold. Since the numbers of brokers are more, it becomes difficult for a buyer or a seller to pick and choose a right broker for the property. This is another very important dragging factor that takes time and finally drags the entire process of purchase or sale of a property.