1

A
PROJECT REPORT
ON
A study on Gap analysis on the Customer Expectation and the
Services provided by the Real Estate agent in Chandigarh and
Mohali
By
Th. Janardhan meetei
(UID 15MBA1075)
Submitted in partial fulfillment of the requirements
For the Degree of

MASTERS OF BUSINESS ADMINISTRATION

(2015 - 2017)

DEPARTMENT OF MBA
UNIVERSITY SCHOOL OF BUSINESS, CHANDIGARH
UNIVERSITY
Supervised by
Dr. Amrinder Singh

Submitted by
Th. Janardhan Meetei

I
II
DECLARATION

This project is my original work and has neither been presented to any other
examination body or University.

Student Signature.................................... Date......................................

Name: Th. Janardhan Meetei

Mentor Signature................................... Date.............................................

Dr. Amrinder Singh
Professor
University School of Business,
Chandigarh University

III
CERTIFICATE
This is to certify that the project work entitled Study on gap analysis of
Customer Expectation and Services provided by Real Estate Agent in
Chandigarh and Mohali submitted by Mr. Th. Janardhan Meetei for the
partial fulfillment of the MBA degree offered by University School of Business,
Chandigarh University during the academic year 2015-2017 is a original work
carried out by the student under my supervision, and this work has not formed
the basis for the award of Degree, Diploma or other such titles.

Date:

Signature of guide.
Name of guide:..
Designation:..
Institution/university:...

IV
ACKNOWLEDGEMENT
I would like to specifically thank my mentor and supervisor for their positive
response of my project and for their valuable guidance towards making my
project in meeting the set standards and helping me in conducting the research
successfully. This report will act as a resource for the Real Estate Industry. I
also appreciate the support of friends and colleagues, my family for their
assistance and providing resources in the course of doing my project.

V
TABLE OF CONTENTS
CERTIFICATE BY TRAINING INSTITUTE DECLARATION......I
DECLARATION....II
CERTIFICATE BY GUIDE..III
ACKNOWLEDGEMENT .IV
TABLE OF CONTENTS .......V
ABSTRACTVI
CHAPTER ONE
Introduction....2
Background of the Study...2-4
Statement of the Problem ...4
Overview or real estate industry in India .....................................5-9
Legislative framework of estate-management in India.....10-11
About company....12-16
CHAPTER TWO
Objective of the study ...18
Significance of the study....18
Scope of the study..19

CHAPTER THREE
Literature review
General literature.....21
Competition in brokerage industry....27
Commission to real estate broker..27
Estate agents and conflicting interest....28
Factors influencing price real estate properties......29
Estate agents price determination..32
Value addition in estate agents marketing.33
Economic view of Real estate property.34
Driver of house price...35
CHAPTER FOUR
Research methodology
Research Design...36
Target Population36
Sample Size and Sampling Technique....36
Data Collection Procedure...36
Questionnaire36

CHAPTER FIVE
Data Presentation, Analysis and Findings
Demographic Profiles and General Information..38
Analysis on services provided by the agents...41
Location preference.........42
Factors considered by respondent.....43
Customer services.....43
Prompt complaints handling.....44
Brokerage: ....45
Customer satisfaction:.......45
Medium of sale or purchase..46
Respondent preference for builder or project........46
Respondent need post sale service47
Agents provided Post sale services...47
Customer need market price analysis48
Agents provided market price analysis.48
Summary and Findings.49

CHAPTER SIX
Conclusion 51
Limitation of the study...52
Recommendation....53
CHAPTER SEVEN
Reference.....54
Questionnaire..55

VI
ABSTRACT
India is an over populated country and day by day population is increasing
rapidly which created the housing problem. Land prices skyrocketed. Due to
high price, insufficiency of land, high cost of land registration, and high price of
building materials, people are now not interested to buy a land for building their
own house. This research project is meant to identify the role of Real Estate
agent after studying the gap analysis between customer expectation and the
services provided by the real estate agent in Chandigarh and Mohali, India. This
report also shows the customer perception and expectation in different
dimensions - budget, factors related to purchase decision, desired services from
a particular company, the risk factors perceived by the customers.
Geographically, this study focuses on the Chandigarh and Mohali city, and can
be considered as a little contribution to the understanding of the real estate
industry, particularly in Chandigarh and Mohali and particularly from the
customer perspective. The occupation of real estate broker or real estate agent
has been under looked and many agents have been budding up in the area. In
some instances, persons working in the office of these agents handled the
transaction, but those employees were not considered real estate agents or
brokers as they dont have a set of prescribed roles and responsibilities. In light
of this the objectives of the study was to assess the role of these agents as well
as identify services the Estate Agents offer to the public so that we can
streamlined the roles of them.. The study used primary data collection method
via a questionnaire to collect data on the roles and customer expectation from
target market. The researcher approached the respondents and requested them to
participate in the survey. The data that was collected was recorded in tables to

analyze the .After completion of the research; findings were presented along
with suggestion

CHAPTER ONE

Introduction
This chapter of the research will discuss about the background of Real Estate as
well as the definition of a Real Estate Agent. It will also contain the statement of
the problem, objectives, significance of the study, scope of the study and
limitation of the study.

Background of the Study.

Real estate includes all natural parts of land such as trees and water, and all
permanently attached improvements such as fences and buildings. Real estate is
in fact has variety of purposes, including retailing, offices, manufacturing,
housing, ranching, farming, recreation, worship, and entertainment. The success
or failure of real estate is dependent on many interrelated factors: economic
conditions, demographics, transportation, management expertise, government
regulations and tax policy, climate, and topography. The objective of those
engaged in the real estate industry is to create and add value to the existing land
by developing land or by attaching structures to sell or to lease. The real estate
industry employs and works with different developers, architects, designers,
landscapers, engineers, surveyors, abstractors, attorneys, appraisers, market
researchers, financial analysts, construction workers, sale and leasing personnel,
managers, office support workers, and building and grounds maintenance
workers. By the end of 2001, as many as 1,544,000 people were employed in
the real estate industry.
The development and marketing of real estate, common in Europe since the
Middle Ages, came with European colonists to the United States. For instance,
in the seventeenth century Dr. Thomas Gerard, an owner of land in Maryland

granted to him by the second Lord Baltimore, profited by leasing and selling
land to other settlers. The new federal city of Washington, created in 1791, was
subdivided and the lots offered for sale, although this enterprise proved
disappointing to its sponsors. The first hotel constructed in the United States, an
early example of commercial real estate development, was the seventy-threeroom City Hotel at 115 Broadway in New York City, which opened in 1794. It
served as a model for similar hotels in Boston, Philadelphia, and Baltimore. In
the 1830s, William Butler Ogden came to investigate land his brother-in-law
had purchased near the Chicago River and stayed on to become a real estate
developer and Chicago's first mayor. The rapid growth of cities in the nineteenth
century provided many opportunities for the real estate industry.
Real estate development is sensitive to fluctuations in the economy and in turn
contributes to those cycles. The combination of a capitalist economy and a
growing population makes the expansion of land uses inevitable, but developers
can misjudge the market and produce too many office buildings, hotels,
apartment buildings, or houses in any particular area. As a result rents and sale
prices fall. The economic prosperity of the 1920s brought a huge expansion of
real estate, especially in housing, but by the mid-1930s, 16 million people were
unemployed and the demand for real estate of all types declined precipitously.
World War II brought technological innovation and a backlog of demand for
new construction. The mortgage stability introduced by federal legislation
following the Great Depression and World War II greatly aided the huge
expansion of suburban housing and shopping centers that followed the war.
William Levitt started building Levittown on Long Island in 1947, with 17,447
standardized houses produced at the rate of 36 per day for a population of
82,000, and by 1955 this type of sub-division represented 75 percent of new
housing starts. The 1950s also brought the nationwide development of Holiday
Inns by Kemmons Wilson. In the continuation of a trend that had begun with the

Empire State building in the 1930s, skyscraper office, apartment, and hotel
building construction continued after World War II in urban centers, driving up
site values. As population growth shifted to the West and the South after the
war, investment in the real estate industry moved with it.
The restrictive monetary policies of the latter years of the 1960s, the energy
crisis and inflation of the mid-1970s, inflation in the early 1980s, the savings
and loan crisis of the late 1980s, and inflation and overproduction in the early
1990s, all negatively affected the real estate industry. However, a period of
general economic prosperity began in 1992 and the real estate industry
flourished in the remainder of the 1990s.
STATEMENT OF THE PROBLEM
The aim of this research is to understand the role of real estate agent behind the
growth of Estate Agents with property development being the foundation stone.
Urban areas are hubs of dynamism, change and opportunity but they are also
places of exploitation, disease and unemployment. The provision of adequate
shelter in urban areas is one of the most pressing challenges facing the nation in
the new millennium. For the country to realize the expected future output of
housing stock, the Government will rally all actors in both public and private
sectors. The combination of all the factors of housing production as outlined in
the review embracing finance, land, research and institutional arrangement will
form basis for the preparation of housing development programmes. The
Government, local authorities, NGOs, Co-operatives, Banks, Building Societies,
Regional Development Authorities and individuals are called upon to step up
their efforts several folds to ensure that the present untenable housing situation
is contained. For the above reasons Estate Agents have a huge role to play in
acting as an intermediary between owners as well as investors in property
development and tenants as well as potential property buyers. Due to the

provision of these services it is therefore paramount to ascertain if there is any

growth of estate agents firms
OVERVIEW OF REAL ESTATE INDUSTRIES IN INDIA
Real estate in India continues to be a favored destination globally for investors,
developers and non-resident Indians (NRIs), driven largely by investor-friendly
government policies and increasing Globalization. The second largest
employment generation sector after agriculture, real estate contributes about 6.3
per cent to India's gross domestic product (GDP). The foreign direct investment
(FDI) in the sector is expected to touch US$ 25 billion in the next 10 years from
its current US$ 4 billion. The sector's progress is driven by factors such as rapid
Urbanization, a growing trend towards nuclear families, positive demographics,
ruralurban migration, ever-developing infrastructure, higher income levels and
housing demand. The real estate sector, with its growing investment
opportunities, is expected to post annual revenues of US$ 180 billion by 2020.

Market Dynamics
The real estate sector in India is witnessing rapid growth in the residential,
commercial and industrial segments. Real estate development, once restricted to
bigger cities, have shown marked progress in smaller cities and towns owing to
availability of banks loans, higher earnings and improved standard of living.
The real estate sector of India is projected to post annual revenues of US$ 180
billion by 2020 against US$ 66.8 billion in 2010-11, a compound annual growth
rate (CAGR) of 11.6 per cent. The demand is expected to grow at a CAGR of 19
per cent in the period 2010-2014, with Tier I metropolitan cities expected to
account for about 40 per cent of this growth. As of now, Mumbai, DelhiNational Capital Region (NCR) and Bengaluru cater for 46 per cent of total

office space demand in India. This demand is expected to be rise sharply in Tier
II cities such as Kolkata and Chennai in the period 2010-14. Today, Delhi-NCR
accounts for about 30 per cent of the total mall supply in India. About 53 per
cent of demand for total mall space is projected to come from the country's top
seven cities, namely Delhi-NCR, Bengaluru, Mumbai, Kolkata, Pune,
Hyderabad, and Chennai, in the period 2010-2014.
Investment Opportunities
The Indian retail realty sector is projected to grow at around 15 per cent yearon-year over the next 3-5 years as against a 12-13 per cent nominal growth of
India's GDP estimated by the International Monetary Fund (IMF). If the sector
does indeed manage the aforementioned growth, it will touch Rs 34 trillion
(US$ 544.73 billion) by 2016. India's office space stock is estimated to rise by
40 per cent to 642.2 million sq ft by 2017, according to a report by real estate
consultancy Knight Frank India. The current Indian market offers some of the
most competitive rates in the Asia-Pacific region, according to a report by
property services firm DTZ. The report also states that Indian cities will have
some of the fastest rental growths in the region over the period 2013- 17, but
will remain among the most competitive. The share of luxury retail space in
India will be 1.4 per cent by 2015, according to a report by real estate services
firm Cushman & Wakefield. NCR and Mumbai, areas that have embraced the
mall culture, are the two most favored destinations for luxury retailers. The
construction development sector, including townships, housing and built-up
infrastructure garnered total FDI worth US$ 22,671.95 million in the period
April 2000-August 2013. Construction (infrastructure) activities during the
period received FDI worth US$ 2,280.95 million, according to the Department
of Industrial Policy and Promotion (DIPP).

The following are some of the major investments in the Indian real estate sector:
1. Godrej Properties Ltd plans to invest Rs 9,000 crore (US$ 1.44 billion) in 15
new real estate projects in India over the next 10 years.
2. Unitech Ltd has signed a Rs 800 crore (US$ 128.17 million) deal to lease an
800,000 sq ft space at one of its IT Special Economic Zones (SEZ) in Gurgaon,
to multinational human resource firm, Aon Hewitt.
3. NRI billionaire Mr Ravi Pillai plans to purchase stake worth about US$ 100
in a special purpose vehicle floated by Pune-based realtor, Panchshil Realty. The
investment will go into the construction of Trump Towers and World Trade
Centre in Pune, Maharashtra.
4. Infrastructure Leasing & Financial Services (IL&FS) Ltd has claimed a
project worth Rs 244.46 crore (US$ 39.17 million) from realty firm Emaar
MGF for construction work at the latter's residential project at Gurgaon,
Haryana.
5. French luxury hotel chain Sofitel, which is managed by Accor Group, is
targeting 10 properties in India, mainly in major luxury destinations, in the next
few years.
6. One of the world's top manufacturers of elevators, US-based Otis, is setting
its sights on the Indian real estate market. The pace of construction in India
makes the country an attractive proposition for such an investment. The
company will be working with the Delhi and Hyderabad Metro projects. The
former has placed an order for 222 escalators for its Phase III project, according
to Otis.
Government Initiatives

According to the existing FDI policy, 100 per cent FDI in the construction
development sector is permitted through the automatic route. DIPP is looking at
relaxing FDI norms further to encourage investment. It has also proposed a
reduction in the minimum capitalization for wholly owned subsidiaries from
US$ 10 million to US$ 5 million, and from US$ 5 million to US$ 2.5 million
for joint ventures with Indian partners. One of the major initiatives of the
Ministry of Housing and Urban Poverty Alleviation (MHUPA) is to provide
affordable housing for poor people living in urban areas. The Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) is one its flagship schemes, a
reform driven investment programme which started with the objective of
creating economically productive, efficient, responsive and inclusive cities. The
Real Estate (Regulation and Development) Bill, 2013, as approved by the Union
Cabinet is a pioneering initiative aimed at delivering a uniform regulatory
environment to protect the consumer, help in quick verdicts of disputes and
ensure systematic growth of the sector. Road Ahead India needs to invest US$
1.2 trillion over next 20 years to modernise urban infrastructure and keep pace
with the burgeoning urbanisation, as per a report (India's urban awakening)
released by McKinsey Global Institute (MGI). Demand for space from sectors
such as education and healthcare has opened up opportunities in the real estate
sector. Also, growth in the number of tourists has led to demand for service
apartments. This demand in the tourism sector is expected to generate 50,000
new hotel rooms over the next four to five years, across India's major cities.
Exchange Rate Used: INR 1 = US$ 0.0160 as on November 18, 201
Indias real estate sector is set to become a USD 180-billion industry by 2020,
building on initiatives such as smart city mission and tax sops for investment
trust REIT, a top NHB official said today.

The real estate sector is set to become a 180 billion dollar industry by 2020,
National Housing Bank (NHB) Managing Director and CEO Sriram
Kalyanaraman was quoted as saying in a CII statement.
On the basis of the Smart City projects, land record digitization, withdrawal of
corporate tax from REIT structure, the real estate sector growth is bound to
attract funds and confidence of the investors as well in a big way, he added.
Home loan disbursements from NHB have been encouraging, Kalyanaraman
said. The demand for warehousing space would grow whenever the GST Bill is
implemented.
Addressing the conference, CBRE India and South East Asia Chairman
Anshuman Magazine said: A balanced regulatory framework and healthy
financing environment are the two key pillars for the sustainable development
of the real estate sector. Recently announced policy amendments, including
those on RERA and REITs, will aid the growth of the sector.
.The globalization and the emergent of Multinational Corporation in India
results to the growth of real estate market and economic growth. Moreover,
growth of population, rising in income level, rapid urbanization factors
influenced to the growth of Indian real estate market. Since the Indian real
estate market is emerging market in under developed economy, the role of real
estate investors play and vital role of Indian economy. The Indian real estate
market is expected to touch US$ 180 billion by 2020. The housing sector alone
contributes 5-6 per cent to the country's Gross Domestic Product (GDP).
In the period FY08-20, the market size of this sector is expected to increase at a
Compound Annual Growth Rate (CAGR) of 11.2 per cent. Retail, hospitality
and commercial real estate are also growing significantly, providing the muchneeded infrastructure for India's growing needs.

10

Private Equity (PE) investments from foreign funds in the Indian realty market
increased at a Compound Annual Growth Rate (CAGR) of 33 per cent to
US$2,220 million* in year ending December 2015.Deal sizes have also
increased in 2015, and residential projects both luxury and affordable have
attracted a substantial amount of capital.
Private Equity (PE) funds and Non-Banking Financial Companies (NBFCs) in
India are seen increasingly investing jointly in real estate projects, in order to
hedge risk and undertake bigger transactions.
Mumbai is the best city in India for commercial real estate investment, with
returns of 12-19 per cent likely in the next five years, followed by Bengaluru
and Delhi-National Capital Region (NCR). Also, Delhi-NCR was the biggest
office market in India with 110 million sqft, out of which 88 million sqft were
occupied. Sectors such as IT and ITeS, retail, consulting and e-commerce have
registered high demand for office space in recent times.
India's office space absorption stood at 35 million sq ft during 2015@, which is
the second highest figure in the India's history after 2011, and was driven by
corporate implementing their growth plans.
India had the strongest activity in office leasing space in Asia and accounted for
half of Asias total office leasing in third quarter of 2015, with Delhi being the
most active market Delhis Central Business District (CBD) of Connaught Place
has been ranked as the sixth most expensive prime office market in the world
with occupancy costs at US$ 160 per sq ft per annum.

LEGISLATIVE FRAMEWORK OF ESTATE MANAGEMENT IN INDIA

11

The Rajya Sabha passed theReal Estate Regulator Bill, which will help regulate
the sector and bring in clarity for both buyers and developers. Here are 10
things you should know about this bill, touted as a key reform measure in the
vast

real

estate

sector.

1) It establishes the State Real Estate Regulatory Authority for that particular
state as the government body to be approached for redressal of grievances
against any builder. This will happen once every state ratifies this Act and
establishes

state

authority

on

the

lines

set

up

in

the

law.

2) This law vests authority on the real estate regulator to govern both residential
and

commercial

real

estate

transactions.

3) This Act obliges the developer to park 70% of the project funds in a
dedicated bank account. This will ensure that developers are not able to invest
in numerous new projects with the proceeds of the booking money for one
project,

thus

delaying

completion

and

handover

to

consumers.

4) This law makes it mandatory for developers to post all information on issues
such as project plan, layout, and government approvals, land title status, sub
contractors to the project, schedule for completion with the State Real Estate
Regulatory Authority (RERA) and then in effect pass this information on to the
consumers.
5) The current practice of selling on the basis of ambiguous super built-up area
for a real estate project will come to a stop as this law makes it illegal. Carpet
area

has

been

clearly

defined

in

the

law.

6) Currently, if a project is delayed, then the developer does not suffer in any
way. Now, the law ensures that any delay in project completion will make the
developer liable to pay the same interest as the EMI being paid by the consumer
to

the

bank

back

to

the

consumer.

7) The maximum jail term for a developer who violates the order of the
appellate tribunal of the RERA is three years with or without a fine.
8) The buyer can contact the developer in writing within one year of taking

12

possession to demand after sales service if any deficiency in the project is

noticed.
9) The developer cannot make any changes to the plan that had been sold
without the written consent of the buyer. This puts paid to a common and
unpopular practice by developers to increase the cost of projects.
10) Lastly, every project measuring more than 500 square meters or more than
eight apartments will have to be registered with the RERA.
.

Brick Acres Pvt. Ltd. :

13

Brickacres incorporated in the year 2015 at Chandigarh is a team of young

MBA professionals having more than 8 years of experience in the field
of marketing. Brickacres in Real Estate Industry growing as an organization
towards proving a platform of intermediary services to customers by developing
a well trained network of real estate associates.
Brickacres intermediary services Pvt. Ltd was founded on promise of building a
trust among investors end users transaction and services of which we had a
legacy since last many years. Journey begins in early 2015 within a short span.
It has carved a niche for itself and related as one of the most professional real
estate advisory company working in Chandigarh, Mohali, Panchkula try city

14

and also providing services in Delhi NCR region through its network. We deals
on the principle of cooperation in services to customers and maintaining good
relations with them, our team is experienced and dynamic in providing a need
based solution to customer in real estate transaction. Real estate transaction is a
process which involves many steps thats why `we keep our approach very
simple and to the point as much as we can.
Why we?
Brickacres Intermediaries services Pvt. Ltd provides best in class supports to
their customers and associates.

Basic training and location knowhow.

Developers credential and project familiarization.
Knowledge advancement.
Marketing and sale support.
Legal/ documentation assistance.
Sight visit and sales closer endorsement.
Post sales and home loan resources.
Project monitoring and customer relationship maintenance.
Possession formatives and resale support.

Basic training and location knowhow:

Our basic training programs covers

Real estate terminology

Real estate scope and future

Legal and documentation
Location knowhow
Sale process and ethics
Real estate investment tools and portfolio integration

Marketing and sale support:

SMS.

15

E mailers.
One pagers .
Presentation.
Joint calls.
Standee and canopy.
Mega sight visit.
Client meets.

Commission structure and disbursement:

We communicated brokerage structure to associates with regular update
every month.
Brokerage disbursement pattern is different in every developer and can
based on payment schedule.
Although most of the time we disburse 100% of brokerage after 40%
payment to developer and it will take around 45 to 60 days from date of
clearance of 40% demand check.
Brokerage will be disbursed in associates account and there will be no
case payment.
Knowledge advancement:

Complete knowledge to associates through various means.

Quarterly business associate meet.
News of the day social media platform.
Relationship managers personal meetings.
Location visits mega site visits.
Interaction with developers.
Regular E mail and Whatsapp.

Visions :
To became a knowledge- driven global Real estate company with highest level
of operational excellence in all spheres.

16

Mission:
To consistently achieve high growth with the highest levels of

productivity.
To be a technology driven, efficient and financially sound organization.
To contribute towards community for purchasing best property.
To provide the best product and service solution to the people.
To promote the creativity to overcome challenges and attain goals.

Project monitoring and customers relationship maintenances

Project development status to customers and associates.

Demand tracking and cheque collection
Receipts and agreements
New development in particular occasion possession formalities.
Resale support
Property management.

Developers credential project familiarization:

Developers background & financial health

Deliverance and track record
Project study and approval status
Project presentation to associates
Investment and end use approach to customer sale pitch
Pricing and payment schedule
Project location advantage and appreciation aspects
Project management customer basic queries

Site visit and sales closer endorsement:

Site visit support to associates and customers

Mega client site visit
Customers queries caring
Joint call in sales closer and documentation formalities

17

Inventory support
Formal brokerage communication
Post sale and home loan recourse

Application login and receiving

Allotment and builder buyer agreement
Business confirmation to associate
Home load support
Post sale and query solution

Legal/ documentation assistance:

Land laws and approval process

Approval status of projects
Application form & allotment
Builder buyer agreement

CHAPTER TWO
Objectives and need of the study

18

OBJECTIVES OF THE STUDY

General objective
i. To find out role of Real Estate Agents.
ii. To identify if there is any gap between customer expectation and services
from real estate agent.
iii. To analyze the gap and give proper suggestion to the estate agents.

Significance of the study.

This study will enable us to understand the actual role that real estate agents
play in the real estate market. It will also enable us to know the customer
expectation what services do they really want from real estate agent. This will

19

improve the business relationship between the property owners, buyers and
sellers. The study also provides useful data to policy makers for formulating
appropriate policies and programs that will benefit the fast growing property
market. Furthermore, the study will facilitate information to young and budding
entrepreneurs who wish to pursue career in the real estate industry as an actual
realtor which might be quite successful that will be in par with western
professional realtor.

Scope of the study

The research was based in Chandigarh and Mohali where many Real Estate
Agents are set up as well as construction of new real estate projects are coming
up. This research will determine if at all these Real Estate agents have played a
role in the growth of this industry and have they really provided services up to
their customer expectation. This will enable all stakeholders to take buying or
selling decisions of properties. It will also enable policies maker to formulate
and implement policies that are worth. Students and researcher also will be able
to understand the role of real estate agent and consumer expectation from them.

20

CHAPTER THREE

21

Literature review

General Literature
This chapter will highlight on the literature of who are real estate agent and how
Real Estate Development facilitates growth in the Indian economy and
development. It will also focus on the property financing as well as land
classifications. Most importantly literature on Real Estate Agents will be
discussed.
Real estate agents are licensed experts specializing in real estate transactions.
They sell this knowledge about local real estate markets and provide services
associated with the purchase and sale of properties on a commission basis. For
home sellers, agents are typically involved in advertising the house, suggesting
listing prices, conducting open houses, and negotiating with buyers. For home
buyers, agents search for houses that match their clients preferences, arrange
visits to the listings, and negotiate with sellers. In addition, they frequently
provide suggestions on a host of issues related to changes in property

22

ownership, such as home inspections, obtaining mortgage loans, and finding

real estate lawyers (Panle and Parag, 2011).
The agents aim is to make a direct financial profit from the fees charged to their
client (be it the developer or occupier) for carrying out a professional service. In
the case of introducing one party to another they only receive fee if the
transaction is completed (e.g. the property is let) but it is nearly always related
to the value of the transaction in percentage terms. They may be instrumental in
initiating the development process, either by finding suitable site for a developer
or advising a landowner to sell a particular site due to its development potential.
Khadduri and Pusanov (1993) observed that the sales and purchases of real
estate occur relatively infrequently and usually an individual is involved in only
a few such transactions in a life time. For these reasons, it was difficult for both
buyers and sellers to know whether a price offered is the best price they can
obtain in a transaction or even a fairly good price. To overcome this lack of
information base for assessing a single offer, buyers must have access to many
real estate units offered for sale, and sellers to many potential buyers.
According to Khadduri and Pusanov (1993), real estate agents can help to
obtain this information for both buyers and sellers, thereby making it possible to
conduct widespread transactions at competitive market prices.
The choice of real estate agent to handle ones investment will probably
determine the profitability of that investment. According to Richardson (2005),
home buyers and sellers trust their agents to play a vital role in the purchase or
sale of their most important financial investment. They also trust their agents
with

information

about

their

properties,

financial

qualifications

and

purchasing/selling intention.
Agents in return must take reasonable steps to protect their clients information
and satisfy them. When customers satisfaction increases, this may translate into

23

increased profits for both parties and help in ensuring longevity for the real
estate agency market as a whole (Kurtus, 2007).
According to Stewart (2009), understanding the perspective of the consumer
is not a simple task. Consumers perspective of service quality differs from one
another and each takes a different approach to the evaluation of how satisfied
they are. It is difficult to know the exact factors that influence individuals
choice. However, there are some authors that have investigated into this issue
and they came up with a number of factors.
Johnson et al. (1988) in an exhaustive north Carolina study found out that
selling ability, competence, integrity, market knowledge and ability to
understand client needs are very important factors real estate consumers
consider in their choice of real estate agent. The authors established that the
individual agent is more important than the firm in the selection of an agency.
Pastiroff, (2004) noted that range of services, fee structure/levels, consultants
network, track record and market knowledge are important factors that real
estate consumers consider when deciding the choice of real estate agent. He
found out that some factors are more important than others. According to the
author, market knowledge was the most important factor, followed by track
record and then consultants network. Pastiroff (2004) further investigated into
reasons for using the services of estate agents. He found out that the main
reason why real estate customers employ the services of an estate agent was to
concentrate on core businesses. The vast majority of the real estate customers
that were interviewed by the author got their real estate agent through
established relationship.
Michael et al (1990) examined factors that affect real estate sales staff
performance from sixteen firms of various sizes in different residential markets.
They identified five variables affecting real estate sales staff performance. It

24

was reasoned that if these variables could affect performance, it could also
influence clients decision when selecting real estate sales staff. These variables
included gender, hours worked per week, amount of formal education, work
satisfaction, and reputation of the firm.
Nagpal (2009) compared choosing a real estate agent to choosing a doctor.
According to the author, if one do not choose the right real estate agent for ones
job, the property transaction is unlikely to see the light of the day. A good real
estate agent would open a number of good opportunities for his/her customers.
Nagpal (2009) identified some soft qualities of a reliable estate agent. An estate
agent should be easy to talk to and smart to understand his/her clients question;
flexible to work according to the time schedule; a computer savvy; quickly
british journal of management & economics. The presence or absence of these
qualities in an estate agent could determine the quality and quantity of clients
that would patronize the agent.
Leona and Lucy (2002), Brits and Mortar (2006), Mahida (2007),
Bhattacharya (2008) and Pretty (2008), lighted some important questions to
ask an estate agent before dealing with them. Some of these questions are:
number of years in the business; agents firms name and reputation; agents
availability; agents area(s) of specialization; number of transactions involved
in; membership professional body; likely duration of search; agents marketing
plans and programme; number of clients currently working with etc.
R.A. Nagy and R.W. Obenberger (1994) indicate that the recommendations of
family members and friends impact on the investment decisions of investors.
Gill and Biger indicate that investment propensity of investors is positively
affected by their own perceived consultation with an advisor. In similar
manners, real estate brokers, family members, and friends can act as investment

25

advisors in the real estate market. ONeal also suggests that investment advisors
play a significant role in investment decisions of investors.
As an intermediary, the real estate agent promptly makes use of a sellers
property data for sale; provide multiple listing services to gain the competitive
advantages in the real estate market. All services then conjoined with effective
marketing tools like advertising, which in turn help to increase the rate of arrival
of potential buyers, who are better informed and thus better matches for the
sellers real estate property, resulting in a higher rate of offers, or higher offers
or both. Agents are widely employed by developers as letting or selling agents,
where they provide that all important link between developer and occupier. In
performing this role they should be involved from the start of the development
to enable them to advise the developer on the occupiers viewpoint. However,
unless they have a specialist marketing department they usually cannot give
total comprehensive advice on the precise requirements of the market.
A developer will need to commission market research to obtain more detailed
knowledge of the specific market for the completed development. Some
developers may employ an in-house team, although the advantage of the agent
is their knowledge of the market in general and their contacts with potential
occupiers or their agents. (Sara and Richard, 2008)
In the words of Parasuraman et al. (1985), services have become more and
more important factor for organizations. Most service providers depends on
performing the services correctly but also others find services as an important
means of differentiation and creating better customer satisfaction. The problem
facing many real estate agents is how to meet their clients taste, retain them and
be able to gain competitive advantage over others. There is need to know what
the consumers actually value so as to meet their needs and probably retain them.

26

In a study by McDaniel and Louargand (1994), the study revealed that all
services must respond to consumer expectation because consumers perception
of quality is an important part of the consumption decision. Therefore, the
customer must never feel ignored, unimportant or abandoned in service
delivery.
Stewart (2008) noted that the most valuable, and often the most neglected
approach towards getting the edge over competitors is developing a better
understanding of the perspective of the concerned consumer and devising
strategies to increase their service quality. This will give the consumer
satisfaction and also encourage repeat business.
Parasuraman et al. (1985) in their pioneering work on service quality
identified some criteria for assessing service quality from the consumers
perspective. These criteria are: reliability, responsiveness, competence, access,
courtesy, communication, credibility, security, understanding/knowing the
customer, and tangibles. After further research, the authors came out with five
basic dimensions that the consumer of any service wants to have the provider
meet his or her expectations. These are in the areas of: tangibles, reliability,
responsiveness, assurance, and empathy. According to Parasuramanetal.
(1990) are the determinants of the perception of service quality on the part of
the consumer. Omar and Schiffman (1995) Parasuraman et al. (1988) and
Radwin (2000) all reported that consumer requirements need to be known in
order to have a satisfied consumer, that is, the providers understanding of what
the consumer want and the providers ability and willingness to deliver it brings
consumer satisfaction.
Crew (1999) researched into consumer perception of the service offered by real
estate agents in Real Estate Institute of New Zealand. His findings confirmed
that buyers continue to choose a real estate firm because the firm had the

27

services, people or product (home) that they wanted. His findings also reflected
mixed results in terms of consumer satisfaction levels.
Sridhar (2001) observed that service quality is ultimately defined by customer
irrespective of organization internal quality specification. However, there is
problem of different levels of expectation, incorrect interpretations of
expectations, delivery of inappropriate service and failure to match expectations
with performed service. To ensure better service quality, the author advised that
providers should promise what can be delivered, attend to complaints from
dissatisfied customers and make services easily understood. Thomas and
WhitneyThomas (1996) identified communication breakdowns as the greatest
barrier to a positive working relationship. The authors agreed that the more
involved and assertive the consumer, the better the services. From the foregoing,
it could be deduced that there are some factors that bring consumers satisfaction
Competition in Brokerage Industry
The residential real estate brokerage industry has competitive attributes, but its
competition appears to be based more on non price variables such as quality,
reputation, or level of service than on brokerage fees, according to a review of
the academic literature and interviews with industry analysts and participants.
One potential cause of the industrys apparent lack of price variation is the use
of multiple listing services (MLS), which facilitates cooperation among brokers
in a way that can benefit consumers but may also discourage participating
brokers from deviating from conventional commission rates. For instance, an
MLS listing gives brokers information on the commission that will be paid to
the broker who brings the buyer to that property. This practice potentially
creates a disincentive for home sellers or their brokers to offer less than the
prevailing rate, since buyers brokers may show high-commission properties
first. Some state laws and regulations may also affect price competition, such as

28

those prohibiting brokers from giving clients rebates on commissions. Although

such laws and regulations can protect consumers, the Department of Justice and
the Federal Trade Commission have argued that they may also unnecessarily
limit competition and reduce consumers choices. (GAO,2005)
The emergence of the Internet offers the potential to reduce costs by generating
efficiencies and new ways of doing business. While many consumers now use
the Internet to search for homes and related services, such as mortgages,
Internet-oriented brokerage firms still represent a small share of the market.
This has raise questions concerning potential institutional, legal, and other
barriers to greater e-commerce in real estate. (GAO,2005)
Commission to Real Estate Brokers.
Most sellers in the United States pay 6 percent commission to real estate
brokers. However, under some circumstances, an individual agent may receive
only around 1:5 percent out of the total commission because the seller's and the
buyer's agents (if they are not the same) tend to split the 6 percent commission.
Then, each agency may take half of the remaining 3 percent, leaving the
individual agent, who exerts most of the effort, with only 1.5 percent. Outside
the United States, sellers' commission rates are generally much lower, often
ranging from 1.5 percent to 2 percent. This may be a consequence of the fact
that buyers also pay some commission to brokers. Clearly, it is a puzzle why
discount real estate brokers are not observed more frequently in the United
States, offering perhaps more limited services at a discount. Discount brokers
are now widely observed in financial markets. Indeed, antitrust authorities have
expressed many concerns that the uniform 6 percent commission rate may
promote collusive behavior, FTC & DOJ (2007)
Estate Agents and Conflicting Interests

29

The idea that house sellers and real estate brokers have conflicting interests is
not new. In fact, Levitt and Dubner (2005) and Levitt and Syverson (2005)
test the hypothesis that real estate brokers sell their clients' homes at lower
prices than the prices they charge for selling their own homes. Homes owned by
real estate agents sell for about 3.7 percent higher than other houses and stay on
the market about 9.5 days longer. These results support the main result that real
estate brokers tend to exert pressure on sellers to price below the levels that
maximize sellers' expected gains. The literature on middlemen has focused
mainly on some aspects of incomplete markets and incomplete information.
Garella (1989) and Biglaiser (1993) investigate the role played by middlemen
in markets characterized by lemon problems" and adverse selection. Biglaiser
and Friedman (1994) model the role of a middleman as alleviating producers'
moral hazard problem by reducing the sales of products that are found to be of a
lower quality than what producers claim them to be.
Hackett (1992, 1993) compares the incentives to invest in sales promotion
between two types of agents: a dealer and a consignment contracted agent.
Hackett (1992) demonstrates that an increase in demand variance increases the
relative portability of Agent intermediary contracts. Rubinstein and Wolinsky
(1987) and Yavas (1994) describe the role of middlemen as shortening the time
it takes to match sellers with buyers in bilateral search markets. Zorn and
Larsen (1986), Schroeter (1987), Knoll (1988), and Carroll (1989) analyze
the relative efficiency of expected percentage commission over expected fee.
The basic idea is that brokers exert more effort on high-priced houses under a
percentage commission arrangement than under fixed fee contract.

Factors Influencing Price Real Estate Properties.

30

Different types of real estate can have very different cyclic properties.
Empirically, it is shown that they do (Bailey,1963) and the question is posed as
to what might distinguish between property markets where movements are
largely stable responses to repeated economic shocks and those undergoing a
continuing endogenous oscillation (Wheaton, 2003). Real estate pricing deals
with the valuation of real estate and all the standard methods of determining the
price of fixed assets apply (Hugh, 2010).
From a survey done by Oward (1998), many people buy real estate because
they are told that it is a good investment. They do not bother to keep track of
their investment returns to determine whether their purchase was worth the
price.
Real estate industry is both capital-intensive, highly related industries and
industries essential to provide the daily necessities. However, the real estate
pricing models and methods of research rarely receive the critical attention and
development it deserves. Lack of adequate data has limited the scope of
empirical research on real estate transactions. Existing data sets typically
include property characteristics, time to sale, initial listing price and sale price.
They do not contain information on the buyers side of the transaction or on the
sellers behavior between the initial listing and the sale of a property. This
explains why most of the empirical literature on real estate transactions has
either focused on the determinants of the sale price or on the role of the initial
listing price and its effect on the time to sale (Huawang, 2009, Horowitz,
1992; Miller and Sklarz, 1987; and Zuehlke, 1987).
In ordinary usage, price is the quantity of payment or compensation given by
one party to another in return for goods or service (Morahan, 2002). Price can
sometimes alternatively refer to the quantity of payment requested by a seller of
goods or services, rather than the eventual payment amount. This requested

31

amount is often called the asking price or selling price, while the actual payment
may be called the transaction price or traded price (Wales, 2009).
According to David (1990), there are a number of lessons that can be drawn
from the analysis of consumer choice as relates to the price. The first is that the
value of something is whatever we are willing to give up for it. Two things have
the same value if gaining one and loosing the other leaves one neither better nor
worse off, meaning that we are indifferent between the situation before the
exchange and the situation after the exchange. A second lesson is that the value
of something depends not only on the nature of the goods and preference but
also on how much of those goods one has. The third lesson is that the price of
something is determined by the amount of something else one must give up to
get it. Finally, one buys something if and only if its cost is less than its value.
Real estate in Philippines according to Cahill (2010) varies in prices due to
many factors. Among these factors, there are three that have the greatest
influence. The first is location. The location of real estate in Philippines has one
of the most, if not the most, effect on the real estate prices. Usually, the closer
the land is to commercial centers or recognized vocational spots, the more
expensive the land becomes. The second one is accessibility. Roads and other
infrastructure cost a great deal of money to build and maintain which is why
lands supported with paved streets cost more than lands surrounded with dirty
roads. The third is land developer. Real estate prices are also affected by the
companies that own them. The more popular the real estate company is, the
more expensive the lands are. This is because bigger and more widely
recognized realty companies invest large sums of money on quality service and
infrastructure in order to provide prime real estate and service smaller
companies offer only real estate, the bigger companies offer land, road, and
other amenities. They also have a greater amount of experience with land
management and development than smaller and newer competitors.

32

Taylor (2010), points out that price of real estate in Ecuador have been
improving in the last few years and the appreciation is likely to continue during
the coming decade. A two- bedroom Condo in the historic center of Quito,
capital of Ecuador is normally priced below $55,000. In the city center of
Cuenca, the same type of two-bedroom property would cost less than $40,000.
This would clearly indicate that Ecuador real estate prices are among the most
attractive in the international market. A single bedroom, furnished apartment in
the richest neighborhood of Cuenca, situated along the banks of river
Tomebamba would be available for a monthly rental rate of $350. A country
side land 2.5 acres with several fruit trees, fresh water sources, and a traditional
5 bedroom house in the areas like the valley of Longevity, was recently
purchased by an international investor for $60,000 (Taylor, 2010). This clearly
proves that any investment in the Ecuador real estate for sale or Ecuador rentals
is likely to be a highly profitable venture.
South Africa for instance, has achieved many successes, including greater
political stability and greater economic freedom. Research Worldwide.com
published results of its annual survey which showed that property investments
in South Africa showed an actual total return of 15,1% in 2009. South African
commercial real estate outperformed sixteen other major countries (Gauteng,
2010). The real estate is booming South Africa and low interest rates continues
to encourage homeowners to feel confident and spend buying those houses for
sale, farms for sale and commercial property for sale (Gauteng, 2010)
In India, Property India, a real estate agency operates a heavy traffic of real
estate listing service online with more than 31,290 registered members and
30,000 unique visitors monthly.

Estate Agents Price Determination

33

Real estate property buyers shop by comparison, they preview properties in the
areas they are looking and the price range they can afford (Wales, 2010).
Buyers typically base their selection of a house for instance on whats most
appealing to their personal tastes but also what they feel is the best value based
on all of the houses they ve seen (Elli et al,. 2010). So its important to consider
this when setting a list price for a house.
The following additional pricing factors need to be considered as well
(Hutchison, 2005), If a seller set the price too high, the house wont be
selected for showing by realtors. Even though his may be much nicer, it needs to
be priced appropriately and in comparison to other houses in the neighborhood.
What buyers and their agents see is a property that simply appears overpriced in
comparison to other properties in the community, and too expensive to be
considered. If the real estate price is too low, the seller will short-change
himself. His property will sell promptly, but he may make less on the sale than
if he had set a higher price and waited for a buyer who was willing to pay it.
No matter how attractive and polished a piece of real estate is (Kilpatrick,
2007), buyers will be comparing its price with other real properties on the
market. The sellers best guide is cord of what the buying public has been
willing to pay in the past few months for property in his neighborhood
(Hutchison, 2005). Realtors can furnish data on sales figures for those
comparable sales and analyze them to help him come up with a suggested
listing price. Of course ultimately the decision about how much to ask is always
the sellers.

Value Addition in Estate Agent Marketing

There are a number of possible services that real estate agents provide. The real
estate agent has the ability to include a sellers property in a large database of

34

property for sale, called the multiple listing service, which in conjunction with
other types of advertising, can help to increase the rate of arrival of potential
buyers, and/or result in arrivals of buyers who are better informed and thus
better matches forth sellers real estate property, resulting in a higher rate of
offers, or higher offers or both (Gehrig, 1993).
The real estate agent is an expert on conditions in the local property market, and
can therefore aggregate information and provide useful information advice to a
seller about what list prices are appropriate, what arrival rates of buyers to
expect, and what price the seller can expect to receive from sale of their
property. From the standpoint of buyers, real estate agents also provide valuable
services via their access to the multiple listing services, by helping buyers to
direct their search more efficiently to the property in their desired location, style
and price range (Atakan, 2006). It is possible as already presented, to quantify
the impact of a real estate agent on buyer arrival rates, on offer distributions,
and so forth. If it is possible to identify the causal effects; how a real estate
agent affects arrival rates, offer distributions and so forth, then it is possible to
estimate the value of the real estate services using the modeling approach
(Atakan, 2005). In particular, the cost of a real estate agent is also known. The
real estate commission is typically 6% in the U.S., and when a sale occurs
between a buyer and seller who are both represented by their own real estate
agents. This commission is split 50/50between the buying and selling agents.
We can model buyers and sellers endogenous choice of whether to use real
estate agents.
In particular, a seller will list their property with a real estate agency only if the
increase in the expected selling price due to higher arrival rates of buyers and/or
higher offers due to improved matches and/or better advice to the seller on
selling strategy, exceeds the 6% commission (Park, 1989).

35

CHAPTER FOUR

36

Research Methodology

37

Research Methodology
This chapter will describe the research design and methodology that will be
used in the study. It also throws a light on the study design, data sources, study
area, study population, sample size and sampling techniques, methods of data
analysis and presentation of results and the limitation of study.
Research Design
The research design is of a survey study on the real estate Agents in Chandigarh
and Mohali. (Saunders et al., 2009) described that the major purpose of
exploratory survey is to enable researcher to find out what is happening, to seek
new insights, to ask questions and to assess phenomena in a new light.
Target Population
The study population was 30 real estate agents and 30 consumers in Chandigarh
and Mohali.
Sample Size and Sampling Technique
I used simple random sampling so that every population had an equal and
independent chance of being selected. A sample size of 30 is used from the
population.
Data Collection Process
In collection of data, the instrument that was used include: questionnaire and
face to face interviews.
Questionnaires
I used both closed ended and open ended questionnaire. Secondary data from
was also obtained from published paper, newspaper and websites.
Data were entered in SPSS and analyses with SPSS tools

38

CHAPTER FIVE
Data presentation, analysis and findings

39

Data presentation, analysis and findings

This chapter deals with data analysis and discussion on the research findings.
All the sixty questionnaires were returned which represents 100% response rate.
Demographic data was analyzed singly and results provided. Further analysis
was done critical information given by agents as well as customer on their
growth of which results were analyzed from SPSS

Demographic profile and general information:

Gender:

(Source: data

compiled through questionnaire)

The proportion of male respondent is 80% and female is 20% which shows the
dominant of agency businesses by the male gender.

Age

40

Respondents between the ages of 20-30 are 16.67%,

whereas those
above 50 years are only 20%. Most
agent are between
the ages of 4150 years with a proportion of 33.33%
This
indicates young agents below thirty
years
are not as many and do not engage
much
in the agency business

Services provided by real estate agents

Frequency

Percent

Valid Percent

Cumulative
Percent

leasing
Valid

selling buying and leasing

selling and renting
Total

3.3

3.3

3.3

27

90.0

90.0

93.3

6.7

6.7

100.0

30

100.0

100.0

Table: services provided by various agents

From the above table, as many as twenty seven which is a proportion of 90%
provided a combination of services, that is, selling, buying and leasing of real
estate. A proportion of 6.7% provided selling and renting services while leasing
was only done by one respondent which translate to a valid proportion of 3.3%.

41

Preference of location

42

Figure: preferred location

Of the entire respondent, 46.67% of them said Chandigarh is the most preferred
location for any real estate investment, followed by 23.33% of them saying
zirakpur is the best location followed by Mohali and Panchkula

Factors considered by respondent before buying property

43

Factors
Frequency

Percent

Valid Percent

Cumulative
Percent

price

Valid

14

46.7

46.7

46.7

location

23.3

23.3

70.0

financial budget

23.3

23.3

93.3

company image

6.7

6.7

100.0

30

100.0

100.0

Total

Before buying any real estate property, 46.67% considers price as the most
important factors, where as 23.33%
of the respondent consider
location and financial
budget as the
main factors.
Only 6.6 % of
the
respondents
consider
brand image
of the
builder as
the
main
factor
before
buying
real
estate
property.
Customer
service:customer service
Frequency

Valid

Percent

Valid Percent

Cumulative
Percent

yes

26.7

26.7

26.7

no

22
30

73.3
100.0

73.3
100.0

100.0

Total

44

26% of the respondent said that they were given customer support, while 73.3%
of respondent said that they were not given any kind of customer support by the
agent.

Prompt complaints:
prompt_complaints
Frequency

Valid

yes
no
Total

Percent

8
22
30

Valid Percent

26.7
73.3
100.0

Cumulative
Percent

26.7
73.3
100.0

26.7
100.0

73.3% of the respondent said that their complaints or problems have not been
solved by the agents promptly where as 26.7% of them responded that their
problems are solved promptly.

Brokerage:brokerage_charge
Frequency

Valid

Percent

Valid Percent

Cumulative
Percent

yes

24

80.0

80.0

80.0

no
Total

6
30

20.0
100.0

20.0
100.0

100.0

45

80% of the respondent said that 80% of the real estate agent charge higher
brokerage rate than other real estate agent in the locality. Only 20% of them said
that brokerage were not over charged

Customer satisfaction
Customer satisfaction
Frequency
very satisfied
Valid

satisfied
neutral
dissatisfied
very dissatisfied
Total

Percent

Valid Percent

Cumulative
Percent

6.7

6.7

6.7

6
14
7
1
30

20.0
46.7
23.3
3.3
100.0

20.0
46.7
23.3
3.3
100.0

26.7
73.3
96.7
100.0

46.7% of the respondent said they were neither satisfied nor dissatisfied with
the service of their real estate agent. 23.3 % of the respondent said they were
dissatisfied with the service of their real estate agent.

Medium of sale or purchase:

medium_of_saleorpurchase
Frequency Percent Valid Percent

Valid

news paper ad.

internet
agent
friend and relative
builder and projects
Total

1
6
13
3
7
30

3.3
20.0
43.3
10.0
23.3
100.0

3.3
20.0
43.3
10.0
23.3
100.0

Cumulative
Percent
3.3
23.3
66.7
76.7
100.0

46

43% of the respondent that they prefer to sale or purchase property through real
estate agent whereas 23% prefer to deal directly through builder or project. 20%
prefer to use online listing by themselves to sale or purchase property.
Builder and developers:-

47

developers
Frequency Percent
Valid

tdi
sushma
ats
jlpl
acme groups
Total

9
6
6
4
5
30

Valid Percent

30.0
20.0
20.0
13.3
16.7
100.0

30.0
20.0
20.0
13.3
16.7
100.0

Cumulative
Percent
30.0
50.0
70.0
83.3
100.0

TDI
is
the
most

preferred
builder and developers with 30%
according to the respondent,
followed by Sushma and ATS with 20% each. Acme group is the least preferred
builder according to the respondent.

Need post sale service

need_post_sale_service
Frequency

Valid

yes
no
Total

26
4
30

Percent

86.7
13.3
100.0

Valid Percent

86.7
13.3
100.0

Cumulative
Percent
86.7
100.0

48

86.7 % of the total respondent said that they need post sale service while 13.3 %
of the respondent said that they dont need post sale services.
Provided post sale services:
post_sale_service
Frequency

Valid

7
23
30

yes
no
Total

Percent

Valid Percent

23.3
76.7
100.0

23.3
76.7
100.0

Cumulative
Percent
23.3
100.0

However 76.7 % of the respondent said that they were not provided any type of
post sale services whereas 23.3% of the respondent said they were given post
sale services.

Need market price analysis

need_market_priceanalysis
Frequency

Valid

yes
no
Total

20
10
30

Percent
66.7
33.3
100.0

Valid Percent
66.7
33.3
100.0

Cumulative
Percent
66.7
100.0

49

66.7 % of the respondent said that they want their agent to give an analysis of
the current market price while 33.3 % of the respondent said they want to buy or
sell according to their personal choice of price without any price analysis.

Provided market price analysis

give_market_priceanalysis
Frequency
Percent
Valid Percent

Valid

yes
no
Total

4
26
30

13.3
86.7
100.0

13.3
86.7
100.0

Cumulative
Percent
13.3
100.0

86% of the respondent said they were not given any market price analysis for
selling or buying any property, but 13.3% of the respondent said they were
given market price analysis after they ask for it.

Summary and Findings

The purpose of this study was to study the role of the real estate and the gap
between customer expectation d services provided by them. This chapter
discusses the summary of the main findings, conclusion and recommendations
for further research.
Summary of Findings
Demographic Profiles and General Information

50

The study observed that the male gender dominated the bulk of respondents of
which only 20 % were female. Similarly most of the respondents were between
the age of thirty and fifty years as compared to only six who were above fifty
years old.
Findings on services provided
Findings show that out of the services offered by agents, most of the
respondents offered a combination of selling, buying and leasing of property,
along with services like listing of properties, marketing activities for the clients,
multiple listing services, suggest pricing strategy etc. however the research
shows that services like market analysis, post sales services are still lacking in
spite of customer requirement.
Finding on factors and location:
Nearly fifty percent of the respondent said that they consider price of the
property before buying them, they also preferred Chandigarh as the most
preferred destination for investment in real estate.
Medium of purchase or sale of property
From the analysis, the need for real estate is shown as 43% of them need real
estate agent to close their deal.
Certainly there is a gap between the services provided by the estate agents and
customer expectation. These gaps need to be filled after careful study of the
customer preference. Real estate agents should be more customers sensitive to
have an extra edge over other agents.

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Chapter 6

52

Conclusion
The study attempts to investigate into role of real estate agent in Chandigarh
and Mohali from real estate consumers perspective. It was difficult to know the
exact factors that influence individuals choice. However, the study found out
that agent role was necessary to understand so as to fulfill the customer
expectation. It was also found that there are certain gaps between what
customers expect from real estate and what services these agents are providing.
All these are indicators that estate agents are needed more and more so as to
benefit from the growing real estate industry by providing services relating to
sell, buying, leasing and even advising on real estate investment areas as they
have wide information from their work in the field. This will enable us to
understand what the loopholes in the real estate agent roles are and
responsibilities, if these gaps are filled, customers are likely to come back and
possibly introduce their agents to others.

Limitations of the study.

The Real Estate Agents and respondents were hesitated in sharing information.
There is also stiff competition in the property market and for every few steps
there many agents. Furthermore some of the agents were semi- illiterate without
any prior experience or qualification

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Recommendation:
Real estate agent or brokers in the city must be aware of the customer need and
requirement should undergo special training on real estate. If necessary, they
should clear real estate exam imposed by the government and regulatory bodies.
This will enable them to fill the gap of services in the Indian market, making
them a competitive edge over other. It will also enable them to provide services
professionally with comparison to foreign realtors.
Policy makers can take the factors into consideration while making related
regulatory policies and framework. Government regulators should form
appropriate policy to safeguard the interests of the customers. For example,
government should provide clear easy to understand guideline for the citizens
about how to evaluate the quality of the projects, how to check the authenticity
of the projects and the companies, some cost estimation to compare the market
price etc.
On the other hand, real estate companies and developers can take these factors
into consideration while making their business strategy and marketing strategy.
This study will help them to understand consumers better by knowing their
preferences in different dimension. In many cases consumers have several
negative ideas about the developer company such as late handover, low quality,
allotment problem etc. Thats why it is very important for the developer
company to overcome these problems and make a positive image in the
consumer mind.
Suggestion for further research:
Further research should be conducted in the booming real estate industry of
India by both research professionals as well as academicians. This will help ease
information on the same to stakeholder especially if the research is tailor made
to focus on improving fast growing towns and the newly formed government in
India who are out to woo investors.
More research should also be conducted specifically on the real estate agents in
India as well as on their documentation so as to root out quacks who are taking
advantage of naive investors and buyers to make quick cash in the ever growing
property market..

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Chapter 7:

55

Bibliography

Kothari, C.R.(2008). Research Methodology: Methods and Techniques. (2nd

Ed). New Age International Publishers.
Pandey (2008), Financial Management. Ninth Edition. Vikas.
Saunders, M., Lewis, P., & Thornhill, A.(2009). Research Methodology for
business students. (5th Ed). Pearson Education Limited.
Salant, S. (1991). For Sale by Owner: When to Use a Broker and How to Price a
House. Journal of Real Estate Finance & Economics
Hackett, S. (1992) A Comparative Analysis of Merchant and Broker
Intermediation. Journal of Economic Behavior & Organization.
Nagpal, L. (2009). Factors Influencing Selection of a Real Estate Agent., from
http://ezinearticles.com
Johnson, J.M., Nourse, H.O., Day, E. (1988). Factors Related to the Selection of
a Real Estate Agency or Agent, Journal of Real Estate Res., 3(2), 109-118.
Khadduri, J., Pusanov, A. (1993). Beginnings of Real Estate Brokerage in
Moscow, Housing Policy Debate., 4(4), 627-646
Stewart, A. (2009). Leisure: Universal Themes in Consumer Perceptions of
Quality and Satisfaction from http://www.friendsofvista.org/articles
Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), "A conceptual model
of service quality and its implication", Journal of Marketing , Vol. 49, Fall, pp.
41-50
Websites:

http://www.worldpropertyjournal.com/real-estate-news/india/
http://www.indianresearchjournals.com/pdf/IJSSIR/2012/March/11.pdf
http://www.abhinavjournal.com/images/Commerce_&_Management/Feb13/9.p
df

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https://en.wikipedia.org/wiki/Indian_property_bubble
http://waset.org/publications/17357/analysis-of-behaviour-of-real-estate-ratesin-india-a-case-study-of-pune-city
Real Estate Development In India And The Behavior of Investors to Invest In
The Real Estate Market: An Empirical Investigation. Nasar K. K.* & Dr. Manoj
P. K
http://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.198.6732&rep=rep1&type=pdf

Questionnaire
1. Gender

a)

male

b)

female

57

2. Age
3. Services

a)
20-30
b) 31-40
a)selling, buying and leasing

and renting
4. Area of preference
5.
6.
7.
8.

a)Chandigarh

c) 41-50
b)leasing

d)50 above
c)selling buying

b)mohali

c)panchkula

d) zirakpur
Factors before buying property
a) Price
b) location
c) financial budget
d) company image
Did your agent provided any customer support
a)yes
b)no
Did your agent responded to your complaints promptly a)yes b) no
Did you think your agent charges more brokerage fee than you expected

a) yes
b)no
9. Please tick as appropriate to you about your recent service from your
agent a)very satisfied

b)satisfied c)neutral

d)dissatisfied

e)very dissatisfied
10.What is your preferred medium of sale/purchase of real estate
a) agents b)builder and project
c)internet d)friend and
relatives e)newspaper
11. Tick your preferred project/builder from the following
a) TDI
b)ATS
c)Sushma d)Acme

e)JLPL

12.Do you need post sale services a) yes

b) No
13.Do you provide any post sales services to your clients
a) yes
b)no
14.Do you need market price analysis
a) yes
15. Do you provide market price analysis?
a) yes

b) no
b) no