The Market Failure In Real Estate Industry And The Informatization Of Real Estate Broker

China's real estate industry has entered a period of fast development since the capitalization reform of housing distribution started in 1990s. However, with the rapid development of China's real estate industry, a series of problems have aroused, such as the excessive growth of house prices, the exuberant investing, the coexistence of prosperity of real estate industry and market disequilibrium, and the delay of market clearing, which is known as the market failure. The deep and main cause o f market failure is information asymmetry in real estate industry. Our paper analyses the problem by taking information asymmetry in real estate industry as the breakthrough point.Research background, theoretical basis, and definitions of concepts are introduced in first chapter, which lay the foundation of our research in the rest chapters.It also involves a summary of relevant researches at home and abroad, thesis ideas, and research methods.Information asymmetry and market failure in real estate industry are studied in Chapter two.First, We discusses several reasons that cause market failure on the basis of analyzing the performances of that phenomenon, and particularly, information asymmetry is considered as the substantial one. Then, we give a profound analysis of information asymmetry in real estate industry, including the performances, reasons and solutions. In the end of this chapter, from the view of market, informationization of real estate broker will be introduced which we consider as the chief solution of information asymmetry in real estate industry.Based on the preceding study, the real estate broker and the information asymmetry are studied in chapter three. Three parts are contained in this chapter. Firstly, the expound of the theoretical foundation of real estate broker is--transaction costs savings.Secondly, real estate broker has the intention to worse the information symmetry to some extent, by their nature. In detail, we consider that it results from the conflict between the purposes of the agent and their clients, which, as we know, gives rise to some moral problems, such as screening the transaction information and delivering fake and exaggerated information. Thirdly, the author puts forward suggestions and a possibly solution to the information asymmetry in real estate industry. It includes the decision-making of clients, agents and managers. It also suggests the idea that the informatization of brokerage may readjust the information asymmetry of real estate industry.Informatization of real estate broker is discussed in chapter four. At first, the theoretical foundation for informatization is analyzed.Then, it explains the application of IT and examines the information sharing based on network informatization. Finally, this paper elaborates the major ways of informatization to readjust China's information asymmetry in real estate industry, such as the network informatization), the informationizing of government administration and the informationizing of distribution network, etc.As the final part the article, chapter five takes CRIC second-hand house transaction system as an example, which explains the practical significance of readjusting the information asymmetry in real estate industry by informatization of real estate brokeage, and also looks forward to further and better development of the informatizing of real estate brokeage.