Consumer behaviour on Sport Shoes

7/30/2019 Consumer behaviour on Sport Shoes

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A Project ReportOn

Consumers Perception and Expectationswhile

Buying a house

Submitted in partial fulfillment of requirement for the award of

the degree of

MASTER OF BUSINESS ADMINISTRATION

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

NEW DELHI

HMR INSTITUTE OF TECHNOLOGY & MANAGEMENT,

NEW DELHI-110036

(APPROVED BY AICTE, AFFILIATED TO GGSIPU, NEW DELHI)

Submitted by: Mohd Faisal Khan Submitted to: Ms Guneet Kaur


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Enrol. No.: 07213303909 Designations:

Certificate


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STUDENT DECLARATION

I hereby declare that the Project Report conducted at

EARTHCON CONSTRUCTION PVT LTD

under the guidance of

Ms. Nitika Nair

submitted in partial fulfillment for the requirement of the degree of

MASTER OF BUSINESS ADMINISTRATION

ToGuru Gobind Singh Indraprastha University, New Delhi

is my original work & the same has not been submitted for the award of any otherdegree/ diploma/ fellowship.

Place:_____ Sign__

Date:______ Student Name


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ACKNOWLEDGEMENT

My sincere thanks to faculty supervisor Ms Gurneet Kaur and Ms. Nitika Nair underwhose guidance and kind cooperation I was able to complete the project work titled

Consumers Perception and Expectations while Buying a House

All those employees of EARTHCON CONSTRUCTION PVT LTD. deserve special

thanks for their cooperation and help in the collection of necessary and relevant material

for this work.

Also, I do thank and remember my friends for their effort and helping hand.

Every effort has been made to enhance the quality of work. However, I owe the sole

responsibility of the shortcoming, if any, in the study.

_______________________

Mohd Faisal Khan


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Letter of authorization


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Table of Contents

Chapter No. Title PageNo.

CHAPTER 1. INTRODUCTION1.1 Executive summary

1.2 General introduction

1.3 Industry profile

1.4 Company profile

CHAPTER 2 RESEARCH METHODOLOGY2.1 Objectives of the study

2.2 SCOPE OF THE STUDY

2.3 Research Design

2.4 Sampling Design

2.5 Sources of Data Collection2.6 Limitations of the study

CHAPTER 3 DATA ANALYSIS & INTERPRETATION

CHAPTER 4 FINDINGS & RECOMMENDATIONS

4.1 Major findings

4.2 Recommendations

4.3 Conclusion

CHAPTER 5 BIBLIOGRAPHY


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Chapter 1

INTRODUCTION


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1.1 EXECUTIVE SUMMARY

I started my project on 1st June, 2010 in Earthcon Constructions Pvt Ltd (A Real EstateCompany) and was asked to study The consumers perception and Expectations whilethey go to buy a house.I was asked to collect the information related to real estate and the information needed tobuy or search property from the people who can really have experience of purchasingproperty or want to buy house or property. For that I targeted to meet and call people whowere doing jobs at top levels in various organizations. I collected data from Delhi andNCR region.

First of all I prepared the questionnaire according to the job given to me. The objectivesof my questionnaire are as follows Finding the consumers perception while they goes to buy a house.Finding the expectations of a consumer when they goes to buy a house.Finding all the solution to their perceptions and expectations.

A secondary objective was to gather information about what customers want from realestate developer and Regulatory body working in Real estate sector.I started my survey from Centre Stage Mall and Great India Place, Noida sec-18. Icollected data of 100 people which has helped me to find out their perception andexpectations. Few of them are as follows -People do not have a well defined expectation from the Developers.People are not aware about the process of buying a house /property.People are not aware of the legal and technical documents which they should check whilebuying or searching house/property.

Whatever information builder provide to customer in there broachers are condition basedand customer does not understand it in same way.Builders not selling their project directly to END User.People do not know much about the Real Estate sector.


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1.2 General Introduction

SUBJECT MATTER OF THE PROJECT:

Q1) What is the meaning of customers perception & expectations while buying ahouse?

Whenever a person goes to buy a house, he is very confused. At that time he doesnt havea clear cut vision of, whether to go for this builder, that builder, which place, genuineprice and various other factors. So at that time what is there in the mind of the consumerand what all things he is expecting from the builders, etc .

Q2) Why study of consumer perception and expectations?

Real estate sector is a vital section of Indian market structure. Since a lot of opportunitiesare available in the real estate sector so there are a lot of companies and Project developerare operating in Indian real estate sector. Then at this junction the understanding ofperception and knowing the expectations become very much important. So after findingthe reason of all these we can provide maximum satisfaction to customer.

Q3) Why did I choose Earthcon Constructions Group?

The work culture at Earthcon Constructions is based on the fundamental belief thatemployees are its most important asset. Respect and genuine concern for each employee

in the organization is the basic principle on which the organization functions. Theybelieve that by giving mutual respect, recognition, trust, open communication,transparency and opportunities for growth, employees will perform to their fullestpotential and will be sincere, dedicated and committed to their jobs. EarthconConstructions offers to their employees a wide range of benefits to make work and lifemore enjoyable, thisincludes monetary rewards in recognition of excellent work.


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1.3 Industry profile

REAL ESTATE IN INDIA

The size of the real estate industry in India is estimated by FICCI, to be around US$ 12billion. This figure is growing at a pace of 30% for the last few years. Almost 80 % ofreal estate developed in India, is residential space and the rest comprise office, shoppingmalls, hotels and hospitals. This double-digit growth is mainly attributed to the offshoring business, including high-end technology consulting, call centres and softwareprogramming houses which in 2003-04, is estimated to have accounted for more than 10million square feet of real estate development. This is the ideal time to invest in thecountry as policy makers have begun to emphasize on developing adequate infrastructurefor the country. Real estate companies would also do well to maximize their ownperformance and operational efficiency.

The future of the real estate sector in India is going to be guided by two important factors,namely suitable amendments in the Foreign Direct Investment (FDI) guidelines intownships, housing, built-up infrastructure and construction development projects aswell as abolition of Service Tax on the construction industry especially the housingsector. Conversely, if the abolition per se is not possible then drastic modifications in theexisting Service Tax norms is the need of the hour. This Sector is already overburdenedwith taxes; any further imposition of taxes in any form would adversely affect the growthof this sector of the economy.

The importance of the Real Estate sector, as an engine of the nations growth, can

be gauged from the fact that it is the second largest employer next only to agriculture andits size is close to US $ 12 billion and grows at about 30% per annum. Five per cent ofthe countrys GDP is contributed by the housing sector. In the next three or four or fiveyears this contribution to the GDP is expected to rise to 6%. The Real Estate Industry hassignificant linkages with several other sectors of the economy and over 250 associatedindustries. One Rupee invested in this sector results in 78 paise being added to the GDPof the State. A unit increase in expenditure in this sector has a multiplier effect and thecapacity to generate income as high as five times. If the economy grows at the rate of10% the housing sector has the capacity to grow at 14% and generate 3.2 million newjobs over a decade.

Furthermore, this sector has witnessed a spurt in demand not just in residential propertybut also in commercial property. A fast growing area is the I.T. and I.T.- enabled servicesalong with the BPO boom. Estimates worked out show that 42 million sq. ft. of space willbe required every year till 2008, only in I.T. and I.T.- enabled services especially in thecities like Bangalore, Chennai, Hyderabad and


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Pune which is also now gradually shifting to North India. To achieve the much desiredgrowth and development in the Real Estate Segment, FICCI would like to submit thefollowing 10 points for consideration:

Infrastructure Status to Housing: Infrastructure status should be provided to housing

sector. This will enable easier access to low cost institutional funds as also allow thesector to tap long term funds.

Real Estate Mutual Funds: The Government should consider setting up of Real EstateMutual Funds/ Investment Trusts to provide the much needed support to the cash starvedhousing sector, similar to the structures adopted for Estate Mutual Funds/ InvestmentTrusts in developed real estate markets such as, USA, Singapore. Hong Kong, etc. RealEstate Mutual Funds/ Investment Trusts would be an efficient mode for providing equityfinancing as against debt, which is currently the norm for financing real estatedevelopments in India.

Stamp Duty: In some States the Stamp Duty is as high as 14- 15 % of the value of thetransaction. Astonishingly in the Indian context, not only are the rates high, but also thelevy of Stamp Duty is applicable in every subsequent transaction, be it the initial transferpurchase of land or on further sale of the same land after development or any othersucceeding transaction. Opportunely some states have brought the Stamp Duty down tobetween 6-8 %, this should ideally be further brought down to 2-3 % and made uniformlyapplicable across all states. However, if the above suggestion is not acceptable then ifstamp duty has already been paid on one transaction, there should be a mechanism in thelaw, whereby there is a provision for concession or a system of credit for any subsequenttransactions. This would avoid the resultant cascading effect of Stamp Duty, therebyreducing the cost of a property. The concept of credit for taxes paid on subsequenttransactions already exists in other statutes such as CENVAT, VAT, Minimum AlternateTax (MAT), etc.

Public Private Partnership: There is a need to evolve a regulatory framework thatencourages participation of the private sector in bringing technical and managerialexpertise in formulating and delivery of basic amenities like water, sanitation, sewerage,transport and electricity.

Archaic Laws: Availability of land for housing projects has been constrained by avariety of laws like the Rent Control Act and Urban Land Ceiling and Regulation Act,which must be repealed in all the States. A necessary legal and policy framework has tobe put in place to restrict growth of slums and at the same time to re-develop the slumsinto hygienic and livable.

Foreclosure Laws: The existing foreclosure laws are cumbersome as well as timeconsuming and make it practically impossible for Housing Finance Institutions (HFIs) torepossess a dwelling unit financed. HFIs are reluctant to take risk and continue to landprimarily on salaried urban borrowers. Amendment of (National Housing Board) NHB


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Act has already been initiated. The implementation process needs to be expedited to bringin the required changes.

Environmental Impact Assessment Notification: The notification specifies that noconstruction activity to be taken up, inspite of the approval of plans by the Competent

Authority, till the environmental clearance has been sought. In cases where approval hasalready been granted it is suggested that construction activities should be allowed. In theintervening period the builder / developer can obtain the environmental clearancecertificate. In the case of the environmental clearance certificate being denied thenappropriate action if necessary and warranted can be taken against the developer / builderand builder be given time to get clearance before he applies for completion certificate,otherwise the completion certificate will not be given Furthermore, in the case of futureproposed projects the environmental clearances should be taken by the States themselvesor by the planning bodies and not b individual builders.

Land Acquisition: The Land Acquisition Act of 1894, still, to a large extent, governs the

procurement of raw land. With the changing investment scenario it has become necessaryto review the existing law, in order to ensure that private developers and colonizersprocure the land directly from farmers and land owners without putting undue financialburden on State/ Central Governments on land acquisition for public purposes. Today, abuilder is governed by Agriculture Land Ceiling Act even after the land have beenurbanized in the zonal plans / master plans. This makes builders to create severalcompanies in order to circumvent the archaic laws. It is submitted that once the land hasbeen urbanized and incorporated in the master plan, then Agriculture Land Ceiling Actshould not apply and builders should be permitted to acquire lands as per theirrequirements, for the development of townships.

Foreign Direct Investment (FDI): Suitable modifications in the FDI guidelines arerequired, particularly in repatriation of funds, clarification on the basic definition ofbuilt-up area, streamlining of Clearance procedures as well as the opening up of theRetail Segment to FDI. This aspect has been discussed in detail in Section II of thispaper.

Service Tax: Service tax in relation to construction of residential complexes having morethan 12 houses have been proposed to be introduced as a new service. However, norationale has been provided for exclusion of services in relation to construction ofresidential bungalows, which may not form part of residential complexes.


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1.4 Company profile


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2) REVIEW OF LITERATURE:

NEED OF REGULATORY BODY IN REAL ESTATE

Now a days many people are cheated by builder, and since builder are big gun so veryfew people get justice against builder. It Raises a question - Does our constitution really

needs the law. NO!! We already have unlawful Activities (Prevention) Act 1967 andTADA in 1987. `Similarly we have laws but........the same story. Nobody cares/dares it. Aquestion arises that- Do we need RBI or SEBI. How many people (individuals)participate in investing or reaping money from shares/bonds/MF, etc. may be 40%maximum. Its a different issue that 70% of the people get affected due to share marketresult.Similarly in today's real estate may be 50% of Indians get affected directly but 90%indirectly. You know the real cause of recession. Its again the same real estate sector inThe US and of course some mortgage problem. Actually we need to understand where aregulator is needed and where not. Three basic needs Food, Clothing & shelter - Roti,Kapda and Maakan. Now everybody knows Regulatory body in Food and Beverage is

really important (not in India - soPepsi and Coke are doing business - poor us, 1st world countries do have). We don't haveas such a proper regulatory authority for Clothing (as it is cheaper here - look at any 1stworld country, they have). About home....... a dream of every man - whether rich/poorblack/fair.... it takes whole life to get a home. 65% of Indians have their own home at ageof 62. Comparing with a shirt or a burger........... This is really BIG. It doesn't mean thatearlier two is less important....... what I mean to say is that MAKAAN is no lesserimportant. You invest once and thats huge.

Govt. advertises about checking food quality, prices of a commodity, and problems withauto, electrical equipments, and credit cards and........... But I haven't seen this effort to

educate people about real-estate aggressively. What to do if you are at problem with yourbuilder, what is map approval, how can a common man get it, what is mutation, why is itimportant, - really more important to any man than running after some credit card inflatedbill or some inflated charges taken by Big Bazaar - sort of problems. Money market isneededto be regulated because it is the backbone of our economic system.The amount of business real-estate industry is generating can't be no-longer ignored.After 2001, probably everyman directly or indirectly is associated with real-estate sector


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(see the investments in Infrastructure bonds only). After IT and ITES industry, real-estatesector comes next in terms of people employed. The value of stake holders in this sectoris no lesser than 90%. The involvement of more than 50% of the population (publicrepresentatives) makes a govt. Why not a industry. People within (i.e. employees) andoutside (investors, buyers, and share-holders) if moderated by a central agency like RBI

(I name it RERBI - Real Estate Regulatory Body of India), then life for everybody inINDIA might be safer.

Fallout of real estate boom:

The boom in the real estate saw emergence of many builders, who played upon theemotional side of human nature to own one's own dream house, commercial space etc.Besides the ever rising prices of the houses/flats etc attracted many to invest in the realestate with a hope that their money will give the best returns if invested inthe real estate sector. The interest of the consumer in the real estate lead to heavy

bookings of the buildings, innovation of the concept of pre-launch bookings, theflats/commercial space were sold while at the drawing board stage. The consumer neverbothered to check the credentials of the builder, sanctions by the competent offices etc.Instead the consumers were led by alluring advertisements issued bythe builders, promising delivery of possession of constructed building/flat within thestipulated time. The builders promised refund of money immediately on cancellation,some of them also promised assured returns by way of rent. After the bubble has burst,needless to say, the promises of the builders have gone for six. The purchaser/consumershave paid the entire sale price/major consideration and they are under debt ofbank/financial institutions, savings have evaporated and there is no sight of completedbuilding. The promising builder has vanished or has started avoiding calls; request forrefunds, delivery of possession is unheeded. Instead some builders have the audacity todemand more money on account of alleged escalation cost with a remote possibility ofpossession being handed over to them. What do poor and harassed consumers do in suchcircumstances. I need to emphasize consumer is not helpless and should not allow thebuilder to run over him. He should fight for his right, the law of land supports him in thisregard. The Consumer Protection Act, 1986, will come to the rescue of such erringbuilders and will force the builders to pay compensation to the consumer, hand over thepossession of the flat booked/alternative flat in the same locality and will ask to builder tobear the cost of escalation, if any, on account of rise in price of constructing a building.The purchaser/buyer is a consumer within the meaning ofthe above mentioned Act and failure of the builder to hold on to the promise made at thetime of booking in delivering possession etc would constitute deficiency of service.

A cheated customer can lodge a complaint with the consumer forums pointing out thedeficiency of services by the builder. A consumer court is divided into three forumsnamely, district forum, state commission and National Commission. Where the value ofthe property is less than twenty lakhs, the complaint will be filed in theDistrict Forum. Where the value of the property is more than twenty lakhs but less thanOne Crore the complaint will be filed before the State Commission and where the value


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of the property is in excess of Rs. One Crore the complaint will have to be filed in theNational Commission.

In the matter of DLF Universal Ltd Vs Brig (Retd)Kamal Sood, the NationalCommission, reported as MANU/CF/0069/2007 was faced with a situation, wherein the

consumer was led by the advertisement of the builder of delivery within stipulated timeand consequently on the failure to deliver, the builder contended that governmentpermissions, such as approval of zoning plan, layout plan and schematic building planwere not given, thus the delay in constructionshould not be a ground for grant of compensation to the consumer. The consumer wasfurther burdened with the escalation cost due to such delay. The Honorable NationalCommission observed that it is unfair trade practice on the part of the builder to collectmoney from the prospective buyers without obtaining the required permissions such aszoning plan, layout plan etc. It was further held that it is the duty of the builder to obtainthe requisite permissions or sanctions forconstruction etc in the first instance, and thereafter recover the consideration money from

the purchaser of the flat/buildings. The National Commission further observed that ifthere is any express promise that the premises would be delivered within the stipulatedtime and if it is not done so, escalation cost is required to beborne by the builder.

In another matter titled as Veena Khanna Vs Ansal Properties and Industries limited,reported as III (2007) CPJ 185(NC), the National Commission set aside an order of theState Commission, wherein the builder was directed to refund the money to the consumeralong with the interest @ 13%. In the alternative, it was directed that if the builderchooses to hand over the possession of the flat, the order of refund with interest will notcome in operation. The builder taking advantage of the order refunded the money,because of the rise in the prices of the immovable properties. The National Commissionobserved that refund of money with interest at bank rate does not mean that thecomplainant is adequately compensated for delay in construction of flat by the builderand not delivering the possession of the flat. It was noted that because of the delay inconstruction and delay in deciding the matter it is practically impossible for a consumerto purchase a flat at the market price. It was held that it was the duty of the statecommission to direct the builder to deliver the possession of the same flat or flat ofsimilar size to the consumer with compensation for delay in delivering the possession. Orin any circumstances, adequate compensation ought to have been given so that thecomplaint could purchase a new flat of the same size at the prevailing market rate. Merepayment of interest is not an adequate compensation.


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10 informations of how to buy a home or property:

1. How do I buy a house?

Be an informed consumer; buying a house is one of the most complicated and expensivepurchases you will ever make. As with most other things, you get what you pay for. Lookat and compare many houses in different areas. Once you have seen something you like,

assess its location.How far will you have to commute?What is the traffic like?How does the neighbourhood look?What services are available?How good are the local schools?Will you be able to get your children into them?What is the crime rate in the area, and what types of crimes have occurred in the pastcouple of years?

Visit the home on multiple occasions and at different times of the day. Remember:location, location, location. It's one of the biggest factors in setting the price of the home.Before you make a written offer, know exactly what you are buying and what the costswill be after you own it. For example, in addition to the monthly principal and interestpayments that you will have to finance the purchase of your home, you will need tobudget for utility bills, property taxes, and insurance and maintenance costs. If you buy ahome that has a homeowner's association, you will also have to pay association fees.Some homes have special assessments in addition to the regular property taxes. Makesure that you ask the seller for copies of the past years" bills for these services, and thatyou inquire as to whether there are any assessments scheduled to be placed on theproperty in the future. Also, check the condition of the house and any appliances, windowcoverings and other items that you want included in the sale. Consider purchasing a homewarranty. For a minimum fee, the home warranty company will insure that the house andthe appliances are in working condition. Many companies will provide coverage forwashers, dryers, pools and pool equipment, air conditioning, and some roof repairs. Youragent or escrow holder can provide you with information on these policies.

2. Do I need a real estate agent or an attorney?


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An experienced local real estate agent can assist you in finding a home that meets yourparticular needs. He or she will also have information about the home and area that anoutsider would never find just by looking at the particular home. Most homes are listedfor sale by a real estate broker who is referred to as the seller's agent. The seller's agent

represents the seller.The agent who helps you find the home is called the buyer's agent. Usually you will nothave to pay your agent a fee for the time and energy he or she spends in finding the homeand assisting you in closing the sale. The buyer's agent's fee will be paid by the sellerwhen you complete the purchase of the home. Your real estate agent will also assist youin negotiating the price, learning about the community, obtaining a loan, inspecting thehome, and in closing the escrow. In some instances, a real estate agent can represent boththe buyer and the seller. This is referred to as a dual agency. This must be disclosed toyou before you make an offer. It is advised that you proceed carefully in this situation,since your agent will be working for both the seller and you at the same time. If you arenot sure that you understand all of your rights and responsibilities, it is advisable to see

an attorney who is experienced in the purchase of residential real estate. An attorney canhelp you with legal and tax questions that come up during the purchase of the home, andcan assist you in reviewing all of the documents and reports that will be provided to youin the process of purchasing the home. For more information on how to locate a qualifiedattorney, order a free copy of the State Bar pamphlet

3. What information must the seller provide us?

In most cases, when you are preparing to buy a home, the seller must provide you with aReal Estate Transfer Disclosure Statement. This is a pre-printed form that lists manyfeatures or conditions about the home, the land, and the area where the home is located.The seller must list on this form any possible problems he or she is aware of that mightaffect your willingness to purchase the home. This includes, for example, easements,rights of others to control how you use the property, environmental problems, non-functioning equipment, zoning and building violations, and special assessments. Theseller's agent must visually inspect the home and report all facts that he or she feels mightaffect your decision to buy this property. If you want information that is not covered inthe Real Estate Disclosure Statement or additional information that is disclosed, put yourquestions in writing and ask the seller to respond in writing. You should review theDisclosure Statement immediately and carefully. In most instances, you will have alimited period of time to decide whether you wish to proceed with the purchase despitethe stated disclosures. Depending upon your purchase agreement, some sellers willrequire a written acceptance of the conditions contained in the statement. Other sellerswill consider your silence as acceptance of all of the conditions contained in theDisclosure Statement. If you buy a condominium, the seller must give you copies of thehome owners association's rules and bylaws, and financial statements, and must informyou if there are any unpaid assessments. You should also ask


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to see the past minutes of the association board meetings. You might find that there arepending or future lawsuits or defects in the construction of the complex being discussedin these meetings. All of which would affect the value of what you are buying.

4. Should the house be inspected?

Before buying any property, it is advisable to have it inspected by trained specialists. Thekinds of inspections you need depend on the location and condition of the property. Forexample, in a hillside area, you might want a soil stability inspection. If you are buying ahome built before 1978, you should seriously consider an inspection for lead-based paint.At a minimum, you should have the home inspected to determine if it is structurallysound, a pest control inspection to see if the house has been infected by termites or dryrot, and a natural hazards inspection to see if the home is located in an area subject to fire,earthquakes or flooding. The real estate agent can advise you about additional inspections

that might be warranted under the circumstances. Keep in mind that while the seller hasto tell you about anything he is aware of that is wrong with the house, he is not insuringthe quality of the house; for this reason, and an inspection is a good idea.

5. How do I make an offer on a house?

Most homes are sold through real estate agents who have expertise in valuing homes.You can also get information on home sales in your area by visiting a host of Internetsites provided by professionals in the industry, or by reading the real estate section ofyour local newspaper. Once you have found the home of your choice and havedetermined how much you are willing to pay, you need to make a deposit (called earnestmoney) to show the seller that you are serious about buying the house. The deposit isconsidered a down payment on the price of the home. In some instances you may have toincrease your deposit or increase your offer, especially if there are multiple offers on thehome. The deposit is usually deposited in escrow upon the acceptance of your offer. Yousubmit a written offer on a form known as the Residential Purchase Agreement andReceipt for Deposit. This form sets out the terms upon which you are willing to purchasethe property. The price you offer on a home will, in most cases, be less than the amountyou will need to purchase the home. There will be expenses incurred in purchasing thehome that will have to be paid by either the buyer or the seller. These include, forexample, title reports, document preparation, recording fees, local taxes, fees forinspections, escrow fees, homeowner's insurance, and notary fees. Ask your agent orescrow officer to provide you with an estimated closing statement. This will give you anidea of some of the additional costs you will incur in purchasing your home. You do notwant any surprises.


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6. What is a Residential Purchase Agreement and Receipt for Deposit?

This agreement is an offer which, upon acceptance by the seller, results in a binding

contract. It should cover all of the important terms of the sale. For example, it shouldinclude a complete description of the property and of any personal property that will besold with the house, such as window coverings, kitchen appliances, washers and dryers. Itshould state the exact purchase price, including the amount of your initial deposit, anyincreases in that deposit, the amount you will pay in cash, check or wire transfer, and theamount you will need to finance to complete the purchase price. This agreement shouldalso list any conditions that may allow you to back out of the contract. You will want acondition that allows you to cancel the contract if you cannot obtain a loan on favourableterms or if the inspections reveal substantial defects or problems with the home. You mayalso need a condition that allows you to cancel the sale if you cannot sell your currenthome. Please understand, however, the more conditions you have, the less likely the

seller is to accept your offer. This agreement should also set forth what will happen toyour deposit if you cancel the sale, what will happen if you and the seller have adisagreement over the terms of the sale, and how the brokers will be paid.The agreement should also indicate whether you are purchasing the property in "as iscondition" or the seller is warranting the condition of the property. Take the time to goover each and every term of the agreement with your agent before you sign theagreement.

7. How can I get a loan?

Most home loans are made by financial institutions such as banks, savings and loanassociations, and credit unions. Other sources of loans are insurance companies,mortgage bankers, finance lenders, mortgage loan brokers, pension funds and investmenttrusts. Lenders charge different fees and offer different interest rates so it pays to shoparound. Your agent will be able to recommend lenders in your area. When you apply fora home loan, the lender will check your credit rating and review your past employment,income history, and credit and debt obligations. It will also obtain information about theproperty that will be security for the loan. This will include an appraisal or estimate ofthe fairmarket value of the home, a review of the preliminary report prepared by thetitle insurance company to determine what liens, easements and other conditions will besuperior to its loan, and a review of any taxes, assessments and zoning regulations thataffect the property. Some lenders will charge you a loan application fee, documentpreparation fee, appraisal fee and other fees to consider or close the sale. You shoulddiscuss these fees with your lender before you submit your application.

8. How should the title to the home be held?


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Prior to the close of escrow, the escrow holder will ask you how you wish to hold title toyour new home. How someone holds title will affect what will happen to the property inthe event of the death of one of the owners. It also will affect whether certain taxes willbe incurred or whether a probate of the estate will be necessary. You should discuss youroptions with a tax specialist and your agent before you make your selection. You can

hold title to the home by yourself, as separate property, with your spouse, as communityproperty, or with your spouse or a third party, as joint tenants or tenants in common. Youcan also hold title to the property in a family trust. For more information on the differentforms of ownership, see the State Bar pamphlet

9. Do I need title insurance?

Title insurance is necessary for your protection when you buy a home. It is, however, nota guarantee that problems will not arise after the close of escrow. When you make an

offer to buy a home, you, as the buyer, have the right to choose the title company. Thisdecision should be based on the local office's expertise, and the company's record forfairly handling claims under its policies. You should discuss these issues with your agent.Once you have chosen a company, you should make one of the conditions of the close ofescrow clear title to the property. "Clear title" means that when the sale to you iscompleted, the title to the property will be free from liens, judgments and other claimsthat you have not agreed to accept. You should also discuss with your agent the need fora survey of the property and title insurance coverage for boundary line disputes. In manyinstances, especially in rural areas, boundary lines are not where they should be. A surveyand survey coverage can help eliminate future disputes with your new neighbours.

Before a title company issues an insurance policy, it will make an investigation to findout if anyone besides the seller claims to own the property. It will also search the publicrecords for claims against the property. The title company will provide you with a report,called preliminary report. You should carefully review this report to determine if itdescribes all of the property you are interested in buying. You should also review thisreport and determine what items you are willing to accept when you purchase theproperty and what items you wish removed or taken care of as a condition of the close ofescrow. If you are uncertain as to what the report says, you should discuss the matter withyour agent, the escrow holder and/or your attorney. There are different kinds of titleinsurance available. Often the difference in cost for the better policies is nominal. "Basic"or "Standard" coverage is, in most instances, not the best policy available. For anadditional one-time cost or no charge at all, you can obtain protection for losses resultingfrom illegal construction, zoning violations, unrecorded liens, prescriptive easementclaims, and post policy forgeries. Be aware that different companies charge differentrates. Discuss with your agent and the escrow holder what policies are available in yourarea and the differences in prices on each of the policies.


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10. Congratulations!

Whether you are purchasing a home for the first time or for the fourth time, the day ofclosing should be a cause for celebration. And since a portion of your purchase price ispaying for the agents and the escrow holder's expertise, utilize their services throughout

the process leading up to the day of closing. Ask questions; ask for an explanation of anyitem you do not understand. Request copies of any documents you do not understand;keep copies of all documents relating to the purchase of your home. And, if necessary,seek advice from a qualified real estate attorney or tax advisor. Asking questions duringthe purchase of your home will help insure that you and your family will enjoy your newhome for many years to come.


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Chapter 2

RESEARCH METHODOLOGY


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What is research?

Research can be defined as a scientific and systematic search for pertaining informationon a specific topic. We define research as the systematic design, collection, analysis andreporting of data and findings relevant to a specific situation facing the company. Themain aim of research is to find out the truth which has not been discovering yet.

2.1 OBJECTIVES OF THE STUDY

Project has mainly three following objective-

1. To determine the customers perception.

2. To determine the customers expectations.

3. To determine the problems faced by the customers while buying a house.

2.2 SCOPE OF THE STUDY:

The project undertaken makes me able to improve my professional skills and expertise. Ithelps me in getting an idea of Real Estate industry and its importance in our life. Itincreases my confidence on professional ground by dealing with high profile corporatethat are very hard to convince. As for as companys benefit is concerned, this projecthelps company to know its market condition and level of competition. Also it helps in

creating awareness to consumers regarding property documents and in promotion of theirservices. In order to accomplish the objectives of the project a survey has been conductedamongst customers of the real estate market. The survey is based on questionnaire fillingmethod and limited to some parts of Delhi and NCR region. The survey is restricted tothe information needed to show legal, technical and financial transparency betweenproject developer and customer.


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2.3 RESEARCH DESIGN:-

A survey research method was the basic research design. I interact with personally to

people through questionnaire filling method. Questionnaire is having questions regardingthe respondents basic information such as contact details, designation, what type ofinformation they want from real estate project developer and Government, what type ofdocuments they check while buying or searching property.

TYPE OF RESEARCH: - Exploratory and Descriptive.

Exploratory research is a type of research conducted because a problem has not beenclearly defined. Exploratory research helps in determine the best research design, datacollection method and selection of subjects. Given its fundamental nature, exploratory

research often concludes that a perceived problem does not actually exist. Its seeks tofind out how people get along in the setting under question, what meaning they give totheir actions, and what issues concern them. The goal is to learn what is going on here?

On the other hand Descriptive research is aimed to find the complete description aboutan existing problem or phenomenon.

2.4 SAMPLING DESIGN:-

Study of the geographical area comprising of Delhi , Noida and Greater Noida .

It has tried to cover corporate offices of different industries in these regions.

Generally I met with the employees related to the top management of the companies.

The sample size consisting of 100 employees of these regions.

2.5 SOURCE OF DATA COLLECTTION:-

1. Primary data are collected through questionnaire and tele-call method which is designto keep in view the objective of the study.

2. Secondary data is collected through internet sources, research papers, published reportsby various institutions and also from companies existing customers.


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DATA PROCESSING:-

Daily data was entered into MS-Excel sheets. After the exhaustion of the specifiedgeographical area this data was analyzed using SPSS () graphical and tabulationtechniques. The data sheets mentioned here are attached in the annexure of the report.

2.6 LIMITATIONS OF THE STUDY:-

Un-availability of the desired personnel was the biggest constraint to this study. Although appointments were made and followed up where possible but still there wereinstances where the desired people were either unavailable or unwilling to meet.

No prior information regarding the addresses or other details of the offices to be visited

was provided, thus a few target persons were left uncovered.This project is completed in six weeks, so due to time constraints it was not possible to

cover all the area of Delhi and NCR region and mainly Noida area was covered followedby Delhi.

Some dealers were hesitating to give supportive data. Some of them ignored the questions which were supposed to be filled by them. Thus affecting the scientificaccuracy.

Since the data is not evenly collected from the NCR region hence there is a chance of biasness.


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CHAPTER 3

DATA ANANLYSIS AND INTERPRETATION


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74%

14%

12%

1

2

3

Q) The professions of the people I met..

S.no: Profession type Frequency Percentage Cumulative percentage

1

2

3

Private service

Govt. service

Business

TOTAL

74

14

12

100

74

14

12

100

74

88

100

100

During the survey I visited many Offices, Malls and Houses to meet with People who cangive me proper response of my questionnaire. I met with total 100 People out of which14% people are/were doing Government services , 74% people are doing Private servicesand 12% people are doing business. My target was to meet service class people becausethey are educated and they are having capability of buying house or any experience ofbuying house or any property.


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13

61

26

0

10

20

30

40

50

60

70

1

age group

counts Series1

Series2

Series3

I met with people having different age. But generally I choose to met people having agemore than 35 years .Because they have bought house or they are in process of buying anyhouse. The people I have met most people belong to age group of 35 to 45 years andhaving 61% and people belonging to age group 28 to 35 years having (least) 13%.Peopleare in age group 45-55 years or more years are having 26%.

Q: How much are you satisfied from real estate marketing information provided by

real estate companies?

Satisfaction Frequency Percentage Cumulative percentage

Highly Satisfied

Satisfied

Neutral

Dis-satisfied

Highly dissatisfied

01

47

38

12

02

01

47

38

12

02

01

48

86

98

100


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1%

47%

38%

12%

2%

12

3

4

5

With the help of above pie chat and table it is clear that majority (47%) of people aresatisfied and very less proportion (1%) of people are highly-satisfied with the marketinginformation provided by the real estate companies. Many people who are satisfied withthe marketing information provided by developer ,they were saying that Real estatecompanies does not want to share each marketing detail but also some real estatecompanies does not want to hide any marketing detail if customers asking about them.38% people are neutral, 12 % people are dissatisfied and 2% people are stronglydissatisfied from the marketing details provided by the real estate companies. The reason

of this strange result in simple languages is as follows-Builders do not give complete marketing information in their broacher.Marketing information provided by real estate developers is condition based.In the marketing information broacher, developers do not share the negative side of

project.The paper work is a bit different from that of the actual work.We can make most of the customers satisfied by

1. Creating awareness about all the marketing details.2. By asking the developers to provide each (negative and positive) marketing detailwithout any terms and conditions in their broacher.3. By making the people aware of all the legal and technical documents which are needed

while going to buy a house.


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Q: What source of information do you prefer while buying/ searching for a

Property?

SOURCE FREQUENCY PERCENTAGE CUMULATIVE %

Print media 41 41 41

reference 33 33 74Brokers $ internet 16 16 90

Tv and radio 8 8 98

Others 2 2 100

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5

Series1

The above Table and chart shows that most of the people prefer Print media (41%) andpersonal reference (33 %) for searching house or property. And other sources like Brokerand internet, TV & Radio, Outdoor advertisement are having 16%, 8% and 2 %respectively.Many people say that search of property through internet is very comfortable. Because ina single click they can reach to a number of builders and their projects. They were sayingthat mostly internet property web portal shows only marketing detail of projects but ifthey will show legal and technical document of project so searching property throughinternet become more beneficial. Some people say that print media is better way of

searching property because it is easily available at every where any time and also givesinformation about current status of project with marketing details. Many people weresaying that buying or searching house or property through broker is not safe because oftheir dual nature .Generally they are making hype of the developers project and hidenegative side of the project.


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Q. Choose your preferable location and types of house you want to purchase?

Location Frequency Percentage Cumulative %

Noida 41 41 41

Greater noida 37 37 78

Delhi 18 18 96Gurgaon 4 4 100

LOCATION

Series1, 1Series1, 2

Series1, 3

Series1, 4

0

5

10

15

2025

30

35

40

45

1 2 3 4

locations

percentage

Series1

Majority of the people preferred Noida as the location (41%), then comes the no. ofGreater Noida with 37%, Delhi with 18% and Gurgaon stands fourth with 4% . Thechoice of area depends on the monitory condition and the facilities available to people ata particular area.Most of the people want 2 BHK in Noida area with price ranging from 20 to 25 lakhs. the demand for 3 BHK is bit less and varies from 30-35 lakhs. the demand for 1BHK is not much. People want 4 BHK in the range of 40 to 50 lakhs. there is not great demand of Penthouses and villas in Delhi and NCR region. Most of the people who are doing job or having business who want to purchase 3BHK or 4 BHK prefer luxury house.

Q: Is there any need for any regulating body in the real estate?

In this question, majority of the people have a view that there is a need for someregulatory body which can have a continuous eye on the real estate sector. Very lesspeople say the answer as No, and least no of people have No reply.


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yes

1

2

Q: Do the Real Estate developers give possession timely?

The answer of majority was not in favour. Out of 100 people, 76% said no to this.Whereas 20% said Yes and Rest (4%) Were in two minds .

Response Frequency Percentage Cumulative %

yes 76 76% 76%No 20 20% 96%

Cant say 04 04% 100%

1

2

3


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Q: Do you think govt. takes necessary steps to provide house to the common man?

Response Frequency Percentage Cumulative %

yes 26 26% 26%

No 68 68% 94%

Cant say 06 06% 100%

1

2

3

Majority said No when asked this question and comprised of 49.3% of the totalanswers, 32% said yes and 18% didnt knew where to go .

Q: What all documents you should look before buying house?

Peoples are now very conscious about property document. They were saying that whilebuying or searching property they check property document, but since most of them donot know the all property document required to check thats why there is need to createawareness about property document and builders should show the entire propertydocument to customers themselves. While survey generally people gave name offallowing property document

Link chain ownership document.

Registry

Map approval doc.

Sale deed

Paper shows approval from government authority

Paper of agreement between buyer and seller

No objection certificate (N.O.C.)

Acquisition letter

Payment receipts

Power of attorney of land.


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Q: What are your expectations from the web portal?

The responses to this question were varied, like people said they

They didnt know.

They wanted Transparency. They wanted the Web portal to provide the complete information.

Some said they want the timely information.

Some wanted the Web portal to highlight the full information of the developer.

Some even wanted all the legalities to be cleared by the Web-portals and then

displayed on it.

Q: What Problems have you faced while Dealing with the REAL ESTATE

DEALERS..?

There were varied Responses to this question

Majority said that they wanted to get rid of the brokers. Some said they wanted the Developers to display their complete information on

line and to the customers.

There were people who wanted Hidden costs to be absent.

Some wanted to get rid of the false promises.

Almost all of the people wanted that the Developers should show transparency

and provide them with each and every form of information which they wanted.


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CHAPTER 4

FINDINGS AND RECOMENDATIONS


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MAJOR FINDINGS

Most of the people are dissatisfied from the real estate marketing informationprovided by the real estate companies, but very few people are very stronglysatisfied.

82% people are checking legal status of construction while buying/ searching a

house.

Some of the people check delayed delivery penalty clause while buying a

property.

63% people want to check details of booking before buying or searching house.

Most of the people have chosen PRINT MEDIA & BROKERS as a source of

information while buying or searching for a property.

People who have chosen internet, print media, brokers, and personal reference as

a source of information for searching house or property are more satisfiedcompare to the other sources of information.

There is great demand of 2, 3 BHK house in near future in DELHI and NCR

region.

Most of the people chose information related to the property documents as their

first preference compared to the marketing details of the project, past record ofbuilder and new policies of govt. related to real estate sector.

Most of the people wanted the government to make policies in terms of legal,

technical and financial aspects which could create transparency in real estate

sector.

Most of the people know only the names of few property documents and they

check only these documents while searching a property.

A number of builders do not want to show the property documents to the

customers.


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4. 2 RECOMMENDATIONS

On the basis of my findings, I want to make certain recommendations as follows

Recommendations to Earthcon Constructions Pvt. Ltd.

First and foremost, the database generated through the project should be put to

effective use through continuous follow-ups to the potential customers. A follow-up should be made on the industry potential as a whole as well.

Company should provide information according to peoples need and necessity.

And for that they can open daily polling on their web portal.

Company should not always try to attract the new customers only, but should also

take feedbacks from existing once, and try to remove their problems and learnfrom their experience.

Company should make more contact with contractors and Architects to tap more

builders.

Recommendations to customer

Customers should check all the legal and technical documents and not only the

marketing details of the builders/project, before buying or searching house.

Customers should go through all the terms and conditions of the project

developed.

Customer should be aware of the governments policy related to Real Estate.

Recommendations to Project Developer (Builder)

Builders should show their legal and technical documents to the customers, tomake them satisfied because most of the customers want to check it and this alsohelps in creating a unique identity of the developers.


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4.3 CONCLUSION:-

Now a days people who go for buying a house have become more aware about what they

should look for and the information they should seek, and are more concerned about theselection of the right type of house for them. But majority of the people are still unawareof the documents which they should look for before going to buying a house. Here I havecollected the perception and analyzed the expectations of the general public as a whole.The conclusion thus is that people need to be more aware of all the documents, the totallegalities, and collect as much as information from the builders, and then only they cando their investment with a free mind. Thus because of the above reasons there is a need tocreate awareness among the customers as well as project developers to give thecustomers the complete information and the role of TRUSTED PROPERTY to educatepeople is appreciated in this regard.


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CHAPTER 5

BIBLIOGRAPHY


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Referred Books:

Kothari C.R. - Research Methodology New Delhi Tata McGraw Hill

Kotler Philip Marketing management analysis, planning implementation

and control.

Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice

Hall of India 6th edition

Singh HarpreetResearch Methodology-Kalyani Publishers.

Referred Websites:

www.4shared.com

www.earthcon.com

www.google.com

www.indianrealestateforum.com

www.indiatimes.com

www.studytemple.com

www.trustedproperty.org


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(NOTE-All the information taken from you is only used for research purpose)TOPIC-Understanding the Consumers Perception & Expectations while buying a

House.

Name-

Profession- Govt. service Pvt. Service BusinessDesignationName of organization/Company.Contact No. +91-.Email.Age (in yrs) 25 to 30 30 to 35 35 to 40 More than 401) Rank the following detail according to their importance at the time of purchasing aproperty?(Rank1 to the most important, 3 to least)a) Property documents b) Marketing details of builder c) past record2) Tick the options which match your preferable location and types accordingly?1 BHK 2 BHK 3 BHK 4 BHK Penthouses VillasNew DelhiGhaziabadNoidaFaridabadGurgaonOthers3) For the above chosen option how much are you willing to pay?.4) Do you think real estate developers give possession timely?a) Yes b) No c) Cant Say5) How much are you satisfied from real estate marketing information provided by realestate companies?a) Highly Satisfied b) Satisfied c) Neutrald) Dissatisfied e) Highly dissatisfied6) Do you think the govt. takes necessary steps to provide house to the common man?L o cTaytpieona) Yes b) No c) Cant say


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7) What source of information do you prefer while buying /searching for a property?a) Print media b) T.V. and Radio c) Internetd) Outdoor Add. e)Personal Reference f) Broker8) Do you think real estate web portal bridges the information gap between real estatedeveloper and customer?

a) Yes b) No c) Cant Say9) What all documents you should look for before buying a house?10) What is your Expectation from the web portal?11) What problems have you faced while dealing with the real Estate dealers?

Thank you for sparing your precious time

TrustedProperty.org 710-711, Devika Towers,Chander Nagar,Ghaziabad(U.P)- 201011. Phone No. 0120-4166001

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