Real Estate Business Process Flow

This assignment examines the process flow of a real estate business in Australia, comparing both the current ('As-Is') and future ('To-Be') models. It outlines the roles of sellers, realtors, and buyers, detailing steps involved in property transactions. The analysis highlights the influence of technology, particularly virtual reality, on transforming the real estate process.

Process Model of a Real Estate Business.
Process Flow diagrams of a Real Estate Business in Australia
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Process flow of a Real Estate business
Introduction
The real estate business in Australia has been very dynamic over the past few years, with a lot
of new innovations and changes in the market, as with the real estate agencies. The real estate
agents in Australia generally have a very professional attitude and are updated in
technological knowledge and general information about the local market, which enables them
to present a clear picture to their clients while making a deal (Graff et.al, 1997). The
particular feature about the Australian real estate market and the agencies is that there is a
great variation in the land specifications owing to geography, and the prices related to that in
the market (Bond et.al, 2003). It has been recently noted that prices for housing as well as
properties in Australia were comparatively one of the highest while comparison with other
parts of the world.
The real estate market is very competitive and tough in Australia, with different factors
influencing the market, like foreign investments and a high incidence of immigration from
other countries (Crowe et.al, 2013). The general working structure of a real estate agency
consist two main duties. One is to buy a property or a home, or to sell the same. Depending
on the area, Australian real estate agencies trade in small homes, to mansions in exotic
locations with extraneous luxury. The real estate agencies in Australia normally work as
either a listing agent, who helps in selling the plot, or a buyer’s agent, who helps a
prospective buyer select his home or plot of choice. The working procedure of a real estate
agency is simple; the agency acts as a middleman, negotiating the price between the buyer
and the seller and acts in favor of its client who could be either of the two (Wills, 2008). The
agency charges a fee for their services, which is normally a percentage of the sum of money
involved in the real estate deal.
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Process flow of a Real Estate business
The As-Is Process Flow of purchasing a house
There are mainly three major roles in the As-Is process flow. They are the Seller, the Realtor
and the Buyer. The process flow shifts from the Seller to the Realtor to the Buyer in three
transitions. Initially the seller plans to sell the property and passes on the request to the
Realtor. A realtor is a person involved in the real estate business who is a licensed authority
for buying and selling of a real estate property or a building. The Realtor in an As-Is setting,
receives the request of the sale from the buyer initially. Once the request is made, the
property is inspected based on the specifications comprehensively. Following this an
appraisal is made on the property and an estimated value for the property is fixed. Once the
valuation is done, an open home inspection is carried out on the property which makes an
assessment of the present condition of the property (Zumpano et.al, 1996). If the condition is
deemed to be satisfactory, the feedback is sent to the buyer who decides whether to buy the
property or not. If the decision is a yes, the process flow shifts on to Realtor who decides
whether the sale is to be done through an auction or by private means. The deal is closed in
the final step with the property being purchased by the buyer.
The To-Be process flow of buying a house
The initial process here is an approval from the seller that he is ready to sell the property.
Once the request for the sale is received by the Realtor, the inspection takes place through
virtual reality. Advanced Imaging such as 3D modelling is used, which examines the
condition of the interiors and the rooms. Virtual reality is used by the buyer who does the
inspection of the property through tools which give an interactive feeling. Once the virtual
inspection is done, the decision to buy or sell is again made by the buyer who participates in a
live, virtual reality based auction.
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Process flow of a Real Estate business
The advantage of using this method is that buyers from remote areas can participate in the
auction without any loss of information. The final step here is completed by the buyer who
makes the pivotal decision as to whether the purchase has to be made or not. The advantage
of using process flows such as the As-Is and To-Be models are that the viewers would get a
clear picture in the current setting and how it could be enhanced by technology in the near
future.
References
Bond, S.A., Karolyi, G.A. and Sanders, A.B., 2003. International real estate returns: a
multifactor, multicountry approach. Real Estate Economics, 31(3), pp.481-500.
Crowe, C., Dell’Ariccia, G., Igan, D. and Rabanal, P., 2013. How to deal with real estate
booms: Lessons from country experiences. Journal of Financial Stability, 9(3), pp.300-319.
Graff, R., Harrington, A. and Young, M., 1997. The shape of Australian real estate return
distributions and comparisons to the United States. Journal of Real Estate Research, 14(3),
pp.291-308.
Wills, P.C., 2008. Corporate real estate practice in Australia. Journal of Corporate Real
Estate, 10(1), pp.40-53.
Zumpano, L.V., Elder, H.W. and Baryla, E.A., 1996. Buying a house and the decision to use
a real estate broker. The Journal of Real Estate Finance and Economics, 13(2), pp.169-181.
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