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“Analysis of the consumer’s perception and Expectations while

buying a house”

SUMMER PROJECT
2009

Submitted for the partial fulfillment of the requirement for the award
Of

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY

ABHISHEK KUMAR RAI


Roll. No. - 8002

UNDER THE GUIDANCE OF

Internal Guide: Dr. Siddharth Varma


External Guide: Mr. Ajay Raj Singh

Department of Management
INSTITUTE OF MANAGEMENT EDUCATION,
SHAHIBABAD
DECLARATION

I hereby declare that the project report titled “Understanding the Customer’s
perception and Expectations while buying a house” submitted for the Post
Graduate Diploma in Management is my original work and the project report has
not formed the basis for award of any degree, diploma, associate ship or other
similar titles.

Date: 9/7/09 Submitted by:


Place: Sahibabad. Abhishek Kumar Rai
INSTITUTE OF MANAGEMENT EDUCATION
G.T.ROAD,SAHIBABAD,GHAZIABAD(U.P)

DEPARTMENT OF MANAGEMENT

This is to certify that Abhishek Kumar Rai has worked on the project entitled
“Analysis of the consumer’s perception and expectations while buying a house” for
the partial fulfillment of the requirements of PGDM (batch 2008-10) for period of
45 days from 19th May 2009 to 3rd July 2009. This bonafied work has been done by
him under our supervision.

Signature of the guide


ACKNOWLEDGEMENT

I take this opportunity to express my sense of gratitude to all those who helped me in completing
this project. The successful task would be incomplete without the mention of the people whose
constant guidance and encouragement crown all efforts with success.

First of all I would like to convey my thanks to Dr. SIDDHARTH VARMA (Internal Guide,
Faculty IME) for his constant suggestions which have resulted in successful completion of
project

I would like to express my sincere gratitude to Mr. SAMI KHAN (C.O.O.) for giving me the
opportunity to work and learn with APEKSHA GROUP. I would also like to thank Mr. UDYAN
GIRI (Manager) and Mr. AJAY RAJ SINGH (External Guide, Deputy Manager) who extended
to me all the support and cooperation I required during working in the field in various areas from
time to time.

I would also like to extend my heartiest thanks to Ms Anjali Chauhan (Deputy Manager), Mr.
Subham Rastogi (Deputy Manager), Ms Pallvi Datta (Deputy Manager), Ms Sudeep Khurana
(Deputy Manager) ,without their support I could not complete this project.

The individual and personal efforts of everyone concerned were memorable and I am once again
sincerely thankful to the whole team of APEKSHA GROUP and IME for their cooperation and
providing me the required information and resources and helping me throughout for the
successful completion of this project.
ABHISHEK KUMAR RAI

TABLE OF CONTENTS

CHAPTER 1: PAGE NO.

1.0) I NTRODUCTION OF THE SUBJECT 1


1.1) REVIEW OF LITERATUR 7

CHAPTER 2:

2.0) INTRODUCTION TO THE COMPANY 23

2.1) COMPANY PROFILE 23

2.2) SERVICES OF APEKSA GROUP 25

2.3) APEKSHA GROUP’S CONCEPT TRUSTED PROPERTY 25

2.4) REQUIREMENT & NEED OF TRUSTED PROPERTY 26

2.5) WHY SHOULD PEOPLE LOOK FOR TRUSTED PROPERTY 26

2.6) OBJECTIVE OF TRUSTED PROPERTY 27

2.7) FUTURE PROSPECTS OF APEKSHA GROUP 27

CHAPTR 3:

3.0) RESEARCH METHODLOGY 28

3.1) OBJECTIVE OF THE STUDY 28

3.2) SCOPE OF THE STUDY 28

3.3) DATA COLLECTION METHOD 29

3.4) SAMPLE DESIGN 30

3.5) DATA PROCESSING 30


CHAPTER 4:

4.0) DATA ANALYSIS AND INTERPRETATION 31

CHAPTER 5:

FINDING AND CONCLUSION

5.1) FINDINGS 49

5.2) CONCLUSIONS 50

CHAPTER 6:

6.0) RECOMMENDATION 51

CHAPTER 7:

7.0) LIMITATIONS 52

BIBLOGRAPHY 53

8.0) QUESTIONNAIRE 54

EXECUTIVE SUMMARY
I started my project on 20th may 2009 in Apeksha Group (A Real Estate Consultancy
Company) and was asked to study ‘The consumer’s perception and Expectations while he
goes to buy a house’.

I was asked to collect the information related to real estate and the information needed to
buy or search property from the educated people who can really have experience of
purchasing property or want to buy house or property. For that I targeted to meet people
who were doing jobs at top levels in various organizations. I collected data from Delhi
and NCR region.

First of all I prepared the questionnaire according to the job given to me. The objectives
of my questionnaire are as follows –

Finding the consumer’s perception while he goes to buy a house.

Finding the expectations of a consumer when he 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 real
estate developer and Regulatory body working in Real estate sector.

I started my survey from PRAGATI MAIDAN New Delhi. I collected the data of 300
people which has helped me to find out their perception and expectations. 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 shouldcheck while
buying or searching house/property.

Whatever information builder provide to customer in there broachers are condition based
and 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.

1. OVERVIEW OF REALESTATE INDUSTRY IN INDIA.


1.1 Real Estate Industry in India:

The size of the real estate industry in India is estimated by FICCI,

to be around US$ 12 billion. This figure is growing at a pace of

30% for the last few years. Almost 80 % of real estate developed

in India, is residential space and the rest comprise office,

shopping malls, hotels and hospitals. This double-digit growth is

mainly attributed to the off shoring business, including high-end

technology consulting, call centres and software programming

houses which in 2003-04, is estimated to have accounted for

more than 10 million square feet of real estate development. This

is the ideal time to invest in the country as policy makers have

begun to emphasize on developing adequate infrastructure for

the country. Real estate companies would also do well to

maximize their own performance 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 in townships, housing, built-up infrastructure and construction –
development projects as well as abolition of Service Tax on the construction
industry especially the housing sector. Conversely, if the abolition per se is not
possible then drastic modifications in the existing Service Tax norms is the need of
the hour. This Sector is already overburdened with taxes; any further imposition of
taxes in any form would adversely affect the growth of this sector of the economy.

The importance of the Real Estate sector, as an engine of the nation’s growth, can
be gauged from the fact that it is the second largest employer next only to
agriculture and its size is close to US $ 12 billion and grows at about 30% per
annum. Five per cent of the country’s GDP is contributed by the housing sector. In
the next three or four or five years this contribution to the GDP is expected to rise
to 6%. The Real Estate Industry has significant linkages with several other sectors
of the economy and over 250 associated industries. One Rupee invested in this
sector results in 78 paise being added to the GDP of the State. A unit increase in
expenditure in this sector has a multiplier effect and the capacity to generate
income as high as five times. If the economy grows at the rate of 10% the housing
sector has the capacity to grow at 14% and generate 3.2 million new jobs over a
decade.

Furthermore, this sector has witnessed a spurt in demand not just in residential
property but also in commercial property. A fast growing area is the I.T. and I.T.-
enabled services along with the BPO boom. Estimates worked out show that 42
million sq. ft. of space will be required every year till 2008, only in I.T. and I.T.-
enabled services especially in the cities like Bangalore, Chennai, Hyderabad and
Pune, which is also now gradually shifting to North India.

To achieve the much desired growth and development in the Real Estate Segment,
FICCI would like to submit the following 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 the sector to tap long term funds.
Real Estate Mutual Funds: The Government should consider setting up of Real
Estate Mutual Funds/ Investment Trusts to provide the much needed support to the
cash starved housing sector, similar to the structures adopted for Estate Mutual
Funds/ Investment Trusts in developed real estate markets such as, USA,
Singapore. Hong Kong, etc. Real Estate Mutual Funds/ Investment Trusts would
be an efficient mode for providing equity financing as against debt, which is
currently the norm for financing real estate developments in India.

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

Public Private Partnership: There is a need to evolve a regulatory framework


that encourages participation of the private sector in bringing technical and
managerial expertise 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 a
variety 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 to be put in place to restrict growth of slums and at the same time to
re-develop the slums into hygienic and livable.

Foreclosure Laws: The existing foreclosure laws are cumbersome as well as time
consuming and make it practically impossible for Housing Finance Institutions
(HFIs) to repossess a dwelling unit financed. HFIs are reluctant to take risk and
continue to land primarily on salaried urban borrowers. Amendment of (National
Housing Board) NHB Act has already been initiated. The implementation process
needs to be expedited to bring in the required changes.

Environmental Impact Assessment Notification: The notification specifies that


no construction 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 has already been granted it is suggested that construction activities
should be allowed. In the intervening period the builder / developer can obtain the
environmental clearance certificate. In the case of the environmental clearance
certificate being denied then appropriate action if necessary and warranted can be
taken against the developer / builder and 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 future proposed projects the
environmental clearances should be taken by the States themselves or 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 necessary to review the existing law, in order to ensure that private
developers and colonizers procure the land directly from farmers and land owners
without putting undue financial burden on State/ Central Governments on land
acquisition for public purposes. Today, a builder is governed by “Agriculture Land
Ceiling Act” even after the land have been urbanized in the zonal plans / master
plans. This makes builders to create several companies in order to circumvent the
archaic laws. It is submitted that once the land has been urbanized and
incorporated in the master plan, then Agriculture Land Ceiling Act should not
apply and builders should be permitted to acquire lands as per their requirements,
for the development of townships.

Foreign Direct Investment (FDI): Suitable modifications in the FDI guidelines


are required, particularly in repatriation of funds, clarification on the basic
definition of “built-up area”, streamlining of Clearance procedures as well as the
opening up of the Retail Segment to FDI. This aspect has been discussed in detail
in Section II of this paper.

Service Tax: Service tax in relation to construction of residential complexes


having more than 12 houses have been proposed to be introduced as a new service.
However, no rationale has been provided for exclusion of services in relation to
construction of residential bungalows, which may not form part of ‘residential
complexes’.

SUBJECT MATTER OF THE PROJECT :


Q) What is the meaning of customer’s perception & expectations while buying
a house?

Whenever a person goes to buy a house, he is very confused. At that time he


doesn’t have a clear cut vision of, whether to go for this builder, that builder,
which place, genuine price and various other factors. So at that time what is there
in the mind of the consumer and what all things he is expecting from the builders,
etc.

Q) Why study of consumer perception and expectations?

Real estate sector is a vital section of Indian market structure. Since a lot of
opportunities are available in the real estate sector so there are a lot of companies
and Project developer are operating in Indian real estate sector. Then at this
junction the understanding of perception and knowing the expectations become
very much important.

So after finding the reason of all these we can provide maximum satisfaction
to customer.

Q) Why did I choose Apeksha Group?

The work culture at APEKSHA GROUP is based on the fundamental belief


that employees are its most important asset. Respect and genuine concern for
each employee in the organization is the basic principle on which the
organization functions. They believe that by giving mutual respect,
recognition, trust, open communication, transparency and opportunities for
growth, employees will perform to their fullest potential and will be sincere,
dedicated and committed to their jobs. APEKSHA GROUP offers to their
employees a wide range of benefits to make work and life more enjoyable, this
includes monetary rewards in recognition of excellent work.

1.2 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
very few people get justices against builder. It Raises a question - Does our
constitution really needs the law. NO!! We already have unlawful Activities
(Prevention) Act 1967 and TADA in 1987.

`Similarly we have laws but........the same story. Nobody cares/dares it. A question
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.
It’s a different issue that 70% of the people get affected due to share market result.
Similarly in today's real estate may be 50% of Indians get affected directly but
90% indirectly. You know the real cause of recession. It’s again the same real-
estate sector in The US and of course some mortgage problem.

Actually we need to understand where a regulator 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 - so
Pepsi and Coke are doing business - poor us, 1st world countries do have). We
don't have as such a proper regulatory authority for Clothing (as it is cheaper here -
look at any 1st world country, they have). About home....... a dream of every man -
whether rich/poor black/fair.... it takes whole life to get a home.
65% of Indians have their own home at age of 62. Comparing with a shirt or a
burger........... This is really BIG. It doesn't mean that earlier two is less
important....... what I mean to say is that MAKAAN is no lesser important. You
invest once and that’s huge.

Govt. advertises about checking food quality, prices of a commodity, and problems
with auto, 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 your builder, what is map approval, how can
a common man get it, what is mutation, why is it important, - really more
important to any man than running after some credit card inflated bill or some
inflated charges taken by Big Bazaar - sort of problems. Money market is needed
to 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 (see the investments in Infrastructure bonds only). After IT and
ITES industry, real-estate sector comes next in terms of people employed. The
value of stake holders in this sector is no lesser than 90%.
The involvement of more than 50% of the population (public representatives)
makes a govt. Why not a industry. People within (i.e. employees) and outside
(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 in
INDIA might be safer.

Fallout of real estate boom:


The boom in the real estate saw emergence of many builders, who played upon the
emotional 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 real estate with a hope that their money will give the best returns if invested in
the 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, the
flats/commercial space were sold while at the drawing board stage. The consumer
never bothered to check the credentials of the builder, sanctions by the competent
offices etc. Instead the consumers were led by alluring advertisements issued by
the builders, promising delivery of possession of constructed building/flat within
the stipulated 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/consumers have paid the entire sale price/major
consideration and they are under debt of bank/financial institutions, savings have
evaporated and there is no sight of completed building. The promising builder has
vanished or has started avoiding calls; request for refunds, delivery of possession is
unheeded. Instead some builders have the audacity to demand more money on
account of alleged escalation cost with a remote possibility of possession being
handed over to them. What do poor and harassed consumers do in such
circumstances.

I need to emphasize consumer is not helpless and should not allow the builder to
run over him. He should fight for his right, the law of land supports him in this
regard. The Consumer Protection Act, 1986, will come to the rescue of such erring
builders and will force the builders to pay compensation to the consumer, hand
over the possession of the flat booked/alternative flat in the same locality and will
ask to builder to bear 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 of
the above mentioned Act and failure of the builder to hold on to the promise made
at the time of booking in delivering possession etc would constitute deficiency of
service.

A cheated customer can lodge a complaint with the consumer forums pointing out
the deficiency of services by the builder. A consumer court is divided into three
forums namely, district forum, state commission and National Commission. Where
the value of the property is less than twenty lakhs, the complaint will be filed in the
District Forum. Where the value of the property is more than twenty lakhs but less
than One Crore the complaint will be filed before the State Commission and where
the value of the property is in excess of Rs. One Crore the complaint will have to
be filed in the National Commission.

In the matter of DLF Universal Ltd Vs Brig (Retd)Kamal Sood, the National
Commission, 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 time and consequently on the failure to deliver, the builder
contended that government permissions, such as approval of zoning plan, layout
plan and schematic building plan were not given, thus the delay in construction
should not be a ground for grant of compensation to the consumer. The consumer
was further burdened with the escalation cost due to such delay. The Honorable
National Commission observed that it is unfair trade practice on the part of the
builder to collect money from the prospective buyers without obtaining the
required permissions such as zoning plan, layout plan etc. It was further held that it
is the duty of the builder to obtain the requisite permissions or sanctions for
construction etc in the first instance, and thereafter recover the consideration
money from the purchaser of the flat/buildings. The National Commission further
observed that if there is any express promise that the premises would be delivered
within the stipulated time and if it is not done so, escalation cost is required to be
borne 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 the State Commission, wherein the builder was directed to refund the
money to the consumer along with the interest @ 13%. In the alternative, it was
directed that if the builder chooses to hand over the possession of the flat, the order
of refund with interest will not come 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 Commission observed that refund of money with interest
at bank rate does not mean that the complainant is adequately compensated for
delay in construction of flat by the builder and not delivering the possession of the
flat. It was noted that because of the delay in construction and delay in deciding the
matter it is practically impossible for a consumer to purchase a flat at the market
price.

It was held that it was the duty of the state commission to direct the builder to
deliver the possession of the same flat or flat of similar size to the consumer with
compensation for delay in delivering the possession. Or in any circumstances,
adequate compensation ought to have been given so that the complaint could
purchase a new flat of the same size at the prevailing market rate. Mere payment of
interest is not an adequate compensation.
Complete information 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


expensive purchases you will ever make. As with most other things, you get what
you pay for. Look at 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 neighborhood 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 past couple 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 costs will be after you own it. For example, in addition to the monthly
principal and interest payments that you will have to finance the purchase of
your home, you will need to budget for utility bills, property taxes, and
insurance and maintenance costs. If you buy a home 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. Make sure that
you ask the seller for copies of the past years" bills for these services, and that
you inquire as to whether there are any assessments scheduled to be placed on
the property in the future.
Also, check the condition of the house and any appliances, window
coverings and other items that you want included in the sale. Consider
purchasing a home warranty. For a minimum fee, the home warranty
company will insure that the house and the appliances are in working
condition. Many companies will provide coverage for washers, dryers,
pools and pool equipment, air conditioning, and some roof repairs. Your
agent or escrow holder can provide you with information on these policies.

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

An experienced local real estate agent can assist you in finding a home that
meets your particular needs. He or she will also have information about the
home and area that an outsider would never find just by looking at the
particular home. Most homes are listed for 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 not have to pay your agent a fee for the time and energy he or she
spends in finding the home and assisting you in closing the sale. The
buyer's agent's fee will be paid by the seller when you complete the
purchase of the home.

Your real estate agent will also assist you in negotiating the price, learning
about the community, obtaining a loan, inspecting the home, and in closing
the escrow. In some instances, a real estate agent can represent both the
buyer and the seller. This is referred to as a dual agency. This must be
disclosed to you 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 are not 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 can help you with legal and
tax questions that come up during the purchase of the home, and can assist
you in reviewing all of the documents and reports that will be provided to
you in the process of purchasing the home. For more information on how
to locate a qualified attorney, order a free copy of the State Bar pamphlet
How Can I Find and Hire the Right Lawyer? To find out how to order a
free copy of this pamphlet and other State Bar consumer education
pamphlets, call 415-538-2280. Or visit the State Bar's web
site(www.calbar.ca.gov) where you'll find the bar's consumer education
pamphlets, as well as information on ordering them. The pamphlets also
can be ordered in bulk.

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 a Real Estate Transfer Disclosure Statement. This is a
pre-printed form that lists many features 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 might affect your
willingness to purchase the home. This includes, for example, easements,
rights of others to control how you use the property, environmental
problems, nonfunctioning equipment, zoning and building violations, and
special assessments. The seller's agent must visually inspect the home and
report all facts that he or she feels might affect your decision to buy this
property. If you want information that is not covered in the Real Estate
Disclosure Statement or additional information that is disclosed, put your
questions in writing and ask the seller to respond in writing.

You should review the Disclosure Statement immediately and carefully. In


most instances, you will have a limited period of time to decide whether
you wish to proceed with the purchase despite the stated disclosures.
Depending upon your purchase agreement, some sellers will require a
written acceptance of the conditions contained in the statement. Other
sellers will consider your silence as acceptance of all of the conditions
contained in the Disclosure Statement.

If you buy a condominium, the seller must give you copies of the
homeowners association's rules and bylaws, and financial statements, and
must inform you if there are any unpaid assessments. You should also ask
to see the past minutes of the association board meetings. You might find
that there are pending or future lawsuits or defects in the construction of
the complex being discussed in 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. The kinds of inspections you need depend on the location and
condition of the property. For example, in a hillside area, you might want a
soil stability inspection. If you are buying a home 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
structurally sound, a pest control inspection to see if the house has been
infected by termites or dry rot, 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 has to tell you about anything he is
aware of that is wrong with the house, he is not insuring the 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 Internet sites provided by professionals in the industry, or
by reading the real estate section of your local newspaper. Once you have
found the home of your choice and have determined how much you are
willing to pay, you need to make a deposit (called earnest money) to show
the seller that you are serious about buying the house. The deposit is
considered a down payment on the price of the home. In some instances
you may have to increase your deposit or increase your offer, especially if
there are multiple offers on the home.

The deposit is usually deposited in escrow upon the acceptance of your


offer. You submit a written offer on a form known as the Residential
Purchase Agreement and Receipt for Deposit. This form sets out the terms
upon which you are willing to purchase the property. The price you offer
on a home will, in most cases, be less than the amount you will need to
purchase the home. There will be expenses incurred in purchasing the
home that will have to be paid by either the buyer or the seller. These
include, for example, title reports, document preparation, recording fees,
local taxes, fees for inspections, escrow fees, homeowner's insurance, and
notary fees. Ask your agent or escrow officer to provide you with an
estimated closing statement. This will give you an idea of some of the
additional costs you will incur in purchasing your home. You do not want
any surprises.

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 should include a complete description of the property and of
any personal property that will be sold with the house, such as window
coverings, kitchen appliances, washers and dryers. It should state the exact
purchase price, including the amount of your initial deposit, any increases
in that deposit, the amount you will pay in cash, check or wire transfer, and
the amount you will need to finance to complete the purchase price. This
agreement should also list any conditions that may allow you to back out of
the contract. You will want a condition that allows you to cancel the
contract if you cannot obtain a loan on favorable terms or if the inspections
reveal substantial defects or problems with the home. You may also need a
condition that allows you to cancel the sale if you cannot sell your current
home. 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 to your deposit if
you cancel the sale, what will happen if you and the seller have a
disagreement 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 is condition" or the seller is warranting the condition of the
property. Take the time to go over each and every term of the agreement
with your agent before you sign the agreement.

7. Can I change my mind?

You should not make an offer to purchase a house unless you are serious
about buying it. You can, however, revoke your offer before it is accepted
by the seller. This revocation should be in writing. If your offer has already
been accepted by the seller, you may be able to terminate or revise your
offer if you are unhappy with what your inspections reveal or if other
conditions of the offer are not met.

The Residential Purchase Agreement and Receipt for Deposit contains


several provisions that discuss what will happen in the event the sale does
not go through. There is a mediation provision, an arbitration provision and
a liquidated damages provision. The liquidated damages provision can
result in you losing most if not all of your deposit (up to 3 percent of the
contract price) in the event you elect not to complete the purchase price,
and your election is without good cause. There is no provision in the
standard contract for liquidated damages in favor of the buyer in the event
the seller wrongfully refuses to go through with the sale. You do not have
to agree to this provision. Carefully discuss the pros and cons of initialing
this provision with your agent or attorney.

8. How can I get a loan?

Most home loans are made by financial institutions such as banks, savings
and loan associations, and credit unions. Other sources of loans are
insurance companies, mortgage bankers, finance lenders, mortgage loan
brokers, pension funds and investment trusts. Lenders charge different fees
and offer different interest rates so it pays to shop around. Your agent will
be able to recommend lenders in your area.

When you apply for a 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 the property that will be
security for the loan. This will include an appraisal or estimate of the
fair market value of the home, a review of the preliminary report prepared
by the title insurance company to determine what liens, easements and
other conditions will be superior to its loan, and a review of any taxes,
assessments and zoning regulations that affect the property. Some lenders
will charge you a loan application fee, document preparation fee, appraisal
fee and other fees to consider or close the sale. You should discuss these
fees with your lender before you submit your application.

9. What types of home loans are available?

In exchange for cash from the lender, you agree to pay interest and to make
payments over a period of time. In most instances, the property you
purchase will be security for repayment of the loan.

Sometimes a seller will offer a seller-financed or carry back deed of


trust. This financing method is often used when a seller wants to receive
income over a period of time or when lenders are stringent in their loan
requirements. The terms of these loans should be discussed with your agent
or attorney. He or she is best qualified to determine if the loan documents
and agreement meet all legal requirements.

Occasionally, you can "assume “a loan or take over a loan that the seller
has been paying off. You should be careful in assuming any loan. Most
loans have an acceleration or due on sale clause. This means that the
lender can demand that the seller's loan be paid in full when the property is
sold. If you wish to assume a loan, you should have your agent or attorney
review all of the seller's loan documents and make approval by the lender a
condition to your offer.

Most home loans that are available to Californians offer one of two interest
rate structures. A fixed rate loan offers a set interest rate, so that your
monthly payment never changes. Some fixed rate loans are federally
insured or guaranteed, such as a Veteran's loan or an FHA loan. These
loans usually have a lower interest rate and require smaller down
payments. For more information on these loans, get in touch with a local
office of the California Department of Veterans Affairs, the U.S. Veterans
Administration or the U.S. Department of Housing and Urban
Development (HUD).

Another type of loan that is available is an adjustable rate mortgage loan,


sometimes called an ARM. An ARM is a mortgage loan which provides
for adjustment of its interest rate as market rate interest rates change. The
ARM's interest rate is tied to an index that reflects changes in the market
rates of interest. Some indexes used are the Cost-of-Funds Index published
by the Office of Thrift Supervision, and the Federal Reserve Discount Rate.
These loans usually have interest rates that are lower than the fixed rate
loan interest. ARMs can be complicated. Make sure that you understand all
of the terms of these loans before you agree to accept one.

Occasionally, new mortgage plans become available that are intended to


meet specific needs of a community. These include loans for first-time
homebuyers, and loans for teachers. Check with your local consumer
affairs office and housing departments for up-to-date information on these
types of loans.

10. What occurs when I "close" on a home?

For the protection of the seller and the buyer, a person or company that has
no connection with you or the seller holds the money and papers involved
in the purchase. This procedure is called escrow. The escrow holder's job is
to make sure that all of the terms and conditions of the agreement are met.
He or she will also coordinate all of the activities of the broker, the lender
and the title insurance company. The escrow holder will deliver the deed to
the county for recording when it can pay the seller the money. Escrow
services can be provided by title companies, banks, savings and loan
associations, independent escrow companies, realtors or lawyers.

The escrow holder does not act as a mediator, a lawyer or an advisor. The
escrow holder is required by law to remain neutral. Its only job is to carry
out the terms of the escrow instructions. In Southern California, escrow
instructions are signed when the escrow is opened. They are modified
throughout the course of the escrow as the agreement between the buyer
and seller change. In Northern California, escrow instructions are executed
just prior to the close of escrow. These instructions should be clear and
certain as to the intentions of the parties and the duties of the escrow
holder. Make sure your Purchase Agreement does not conflict with your
escrow instructions. If they do conflict, the escrow instructions may be
considered your final agreement as to the terms of the purchase. If you are
uncertain as to what the instructions say, discuss them with your agent,
your lawyer, and the escrow holder.

After the close of escrow, the escrow holder will provide you with
a Settlement Statement. This document will show you, as the buyer, all of
the costs incurred by you in purchasing the property. You should review
this document carefully and save this statement for later. Many of these
costs may be deductible from either your state or federal taxes. If you have
any questions or concerns about the charges you incurred, contact the
escrow holder immediately and ask for an explanation.

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

Prior to the close of escrow, the escrow holder will ask you how you wish
to hold title to your new home. How someone holds title will affect what
will happen to the property in the event of the death of one of the owners. It
also will affect whether certain taxes will be incurred or whether a probate
of the estate will be necessary. You should discuss your options 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 community property, or with your spouse or a third party, as
joint tenants or tenants in common. You can also hold title to the property
in a family trust. For more information on the different forms of ownership,
see the State Bar pamphlet Do I Need Estate Planning? To obtain a
complimentary copy of this pamphlet, mail a self-addressed envelope (with
55 cents in postage) to the Estate Planning, Trust and Probate Law Section,
The State Bar of California, 180 Howard Street, San Francisco, California,
94105-1639. For information on ordering multiple copies, call 1-888-460-
7364.

12. Do I need title insurance?

Title insurance is necessary for your protection when you buy a home. It is,
however, not a 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. This decision should be based on the
local office's expertise, and the company's record for fairly 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 of escrow clear title to the property. "Clear title" means that
when the sale to you is completed, the title to the property will be free from
liens, judgments and other claims that you have not agreed to accept. You
should also discuss with your agent the need for a survey of the property
and title insurance coverage for boundary line disputes. In many instances,
especially in rural areas, boundary lines are not where they should be. A
survey and survey coverage can help eliminate future disputes with your
new neighbors.

Before a title company issues an insurance policy, it will make an


investigation to find out if anyone besides the seller claims to own the
property. It will also search the public records 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 it describes all of the property you are interested in buying. You should
also review this report and determine what items you are willing to accept
when you purchase the property and what items you wish removed or taken
care of as a condition of the close of escrow. If you are uncertain as to what
the report says, you should discuss the matter with your agent, the escrow
holder and/or your attorney.

There are different kinds of title insurance 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 an additional one-time
cost or no charge at all, you can obtain protection for losses resulting from
illegal construction, zoning violations, unrecorded liens, prescriptive
easement claims, and post policy forgeries. Be aware that different
companies charge different rates. Discuss with your agent and the escrow
holder what policies are available in your area and the differences in prices
on each of the policies.

13. Congratulations!

Whether you are purchasing a home for the first time or for the fourth time,
the day of closing should be a cause for celebration. And since a portion of
your purchase price is paying 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 any item 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 during the purchase of your home will help insure that
you and your family will enjoy your new home for many years to come.
2. INTRODUCTION TO THE COMPANY :

2.1 Company Profile (Apeksha Group) :

APEKSHA GROUP has early established their corporate office in Chandra


Nagar Ghaziabad and it deals in Real Estate sector. It is founded by Mr.
Sami Khan. APEKSHA GROUP is a team of professionals having
technical expertise, past experience in the field of Marketing, Finance,
Project Audit and Media for Real Estate Sector. Generally APEKSHA
GROUP runs three kinds of business –
1. Apeksha Media Network.
2. Apeksha Build Home Pvt. Ltd.
3. Apeksha Property Serve Pvt. Ltd.
Apeksha build home Pvt. Ltd. Has a concept Trusted Property to show case
certified Residential Projects or residential Properties on a portal named
www.trustedproperty.org . Trusted Property aims to create a system where
a Developer can be differentiated with unknown developer, Where
information available for all people, where a developer can demand right
price for their product, where investment risk is minimal, where update of
developers project available regularly. In a simple language I can say that
Apeksha build home Pvt. Ltd. aims to create transparency in real estate
sector.
OBJECTIVE:
Provide cost effectiveness to customers with innovation in marketing,
finance, media management and engineering.

BOARD OF ADVISOR’S –
Mr. Rajeev Rai
B.Tech (Civil Engg.) ,IIT Roorkee
M.Tech.(Structural Engg.) , IIT Delhi
Member, expert comm., for retrofitting of buildings against earthquake
Indian Building Congress
Mr. Sami Khan
COO & Consultant
MBA – Marketing & Finance
On penal of different banks as a Financial Consultant

Mr. Satsimar Singh


M.sc. –Management & Marketing
From London , UK

Mr. Praveen Singh


HR in International Business

Chief Operating Officer’s Profile –


Regarded as one of the foremost corporate leaders of contemporary India,
Shri Sami Khan is the chief operating officer of Apeksha Group.
He is credited with having pioneered a number of path- breaking financial
innovations in the Indian capital markets.
He worked as a finance and marketing consultant for than 18 years and
involved into real estate companies as a General Manager for the last six
years.
He worked as a financial consultant for many reputed companies like
LML, Usha Group, Moserbaer, Prakash, Surya Roshni etc.
He has used number of tools and techniques in real estate sector.

2.2 SERVICES OF APEKSHA GROUP :


Apeksha group provide following services to customer –
➢ Marketing consultancy
➢ Project management
➢ Finance advisor and Project financing
➢ Engineering and Design consultant
➢ Media advisor services
➢ Selling/ under writing of new projects

2.3 APEKSHA GROUP’S CONCEPT-----“ TRUSTED PROPERTY”


(www.trustedproperty.org)
Trusted Property, a concept designed by APEKSHA Group, to show case
Certified Residential Projects or Residential Properties on the internet Site.
What is a Trusted Property?
• A Property with Clear Title, Approved Maps & Finance-able.
• A Property Developed by a Certified Developer.
• A Property easily saleable.
• Clear Status & Surety of finance / Home Loan.
• A Property with better future Appreciation.
• A Property where Customer can take fast action without wasting
time in due diligence.
2.4 What is the requirement of TRUSTED PROPERTY for Real
Estate Developers?
• For the following reason need of trusted property for real estate
developer-
• STAND OUT in CROWD as real Developer of Real Estate.
• To Encourage Healthy Competition.
• VALUE for MONEY.
• Extend Help to Customers to take Right Decision
• Project Information & Documents available on 3rd Party site.
• Another additional advantage for real estate developer –
• Easy Information Available not only to Customers but to Bankers,
Financial institution, corporate investors, Venture Capitalist &
Others.
• A system to Create Image of your Company.
• An Opportunity to Show-case all your projects on internet.
• No Need to give papers to HFC ( Home Finance companies).
• Get Recognition / Appreciations from Customers, Bankers, Investors
and also from GOVT.

2.5 WHY SHOULD PEOPLE LOOK FOR TRUSTED PROPERTY?


• For the following reason there is need of trusted property for people-
• One Stop Source for Legal, Technical & other information of the
Project of the Developers.
• One Stop Source to judge the available opportunity for purchase of
house/flat/land.
• Authenticity of Property of a developer from the 3rd party.
• Safety, Security and Surety of Investment.
• Continuous watch on the project.
• Construction stage, Home Loan availability, Special Facilities, Price
Movement, Fresh availability & Etc.
• A unique concept to understand and perform the right of customers.
• Platform to share problems and find solutions.
• Customer Forum for each project.
• Get help in case of problem with the developer.
• One stop Awareness site for Real Estate.

2.6 OBJECTIVE OF TRUSTED PROPERTY –


• Create a system where a Developer can be differentiated with
unknown developer.
• Where Customer cannot be cheated.
• Where information available for all.
• Developer can demand right price for their product.
• Where investment risk is minimal.
• Where update of project available regularly.

2.7 FUTURE PROSPECT OF APEKSHA GROUP :


With easy availability of finance, emergence of double-income families,
fall in prices due to increased competition, government support regarding
transparency in real estate, growth of media, availability of disposable
incomes, improvements in technology, reduction in bank loan rate, growth
in consumer base of rural sector, increasing awareness of people regarding
property documents, smart management decision, hardworking employee
shows very bright future of Apeksha Group.

3. RESEARCH METHODOLOGY:

What is research?

Research can be defined as a scientific and systematic search for pertaining


information on a specific topic. We define research as the systematic
design, collection, analysis and reporting of data and findings relevant to a
specific situation facing the company. The main aim of research is to find
out the truth which has not been discovering yet.

3.1 OBJECTIVES OF THE STUDY


Project has mainly three following objective-
1. To determine the customer’s perception.
2. To determine the customer’s expectations.
3. To determine the problems faced by the customers while buying a
house.
3.2 SCOPE OF THE STUDY :
The project undertaken makes me able to improve my professional skills
and expertise. It helps me in getting an idea of Real Estate industry and its
importance in our life. It increases my confidence on professional ground
by dealing with high profile corporate that are very hard to convince. As
for as company’s benefit is concerned, this project helps 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
their services.
In order to accomplish the objectives of the project a survey has been
conducted amongst customers of the real estate market. The survey is
based on questionnaire filling method and limited to some parts of Delhi
and NCR region. The survey is restricted to the information needed to
show legal, technical and financial transparency between project developer
and customer.
TYPE OF RESEARCH: - Exploratory and Descriptive.
Exploratory research is a type of research conducted because a problem
has not been clearly defined. Exploratory research helps in determine the
best research design, data collection method and selection of subjects.
Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
Its seeks to find out how people get along in the setting under question,
what meaning they give to their 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 about an existing problem or phenomenon.
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 regarding the respondent’s basic information such as
contact details, designation, what type of information they want from real
estate project developer and Government, what type of documents they
check while buying or searching property.
3.3 DATA COLLECTTION METHODS :-
1. Primary data are collected through questionnaire method which is
design to keep in view the objective of the study.

2. Secondary data is collected through internet sources, research


papers, and published reports by various institutions.

3.4SAMPLE DESIGN:-

Study of the geographical area comprising of Delhi, Ghaziabad, Noida,


Gurgaon, Faridabad were undertaken. 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 300 employee of these region.

3.5 DATA PROCESSING:-

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

4.DATA ANANLYSIS AND INTERPRETATION :-

Q) The professions of the people I met……..

profession type

Valid Cumulativ
Frequency Percent Percent e Percent
Vali private 258 86.0 86.0 86.3
d business 9 3.0 3.0 89.3
govt. 31 10.3 10.3 99.7
1 .3 .3 .3
owner 1 .3 .3 100.0
Total 300 100.0 100.0
Total 300 100.0
ow ner

govt.

business

private

During the survey I visited many Government and Private Offices to meet with
people who can give me proper response of my questionnaire. I met with total 300
people out of which 10.3% (31) people are doing Government services , 86 %(258)
people are doing Private services and 3 % (9) people are doing business.
My target was to meet service class people because they are educated and they are
having capability of buying house or any experience of buying house or any
property.
300

200

100
Count

0
20-25 25-30 30-40 41-50

age of a person

I met with people having different age. But generally I choose to met people
having age more than 30 years .Because they have bought house or they are in
process of buying any house. The people I have met most people belong to age
group of 30 to 40 years and having 71% and people belonging to age group 25 to
30 years having (least) 5.7%.People are in age group 41-50 years and more than 40
years are having 22%.

Q: How much are you satisfied from real estate marketing information
provided by real estate companies?
Valid Cumulative
Frequency Percent Percent Percent
Valid highly
3 1.0 1.0 1.3
satisfied
satisfied 93 31.0 31.0 32.3
neutral 64 21.3 21.3 53.7
dis-satisfied 126 42.0 42.0 95.7
highly
13 4.3 4.3 100.0
dis-satisfied
1 .3 .3 .3
Total 300 100.0 100.0
Total 300 100.0

highly dis-satisfied highly satisfied

satisfied

dis-satisfied

neutral

With the help of above pie chat and table it is clear that majority (42%) of people
are dissatisfied and very less proportion (1%) of people are highly-satisfied with
the marketing information provided by the real estate companies . Many people
who are satisfied with the marketing information provided by developer ,they were
saying that Real estate companies does not want to share each marketing detail but
also some real estate companies does not want to hide any marketing detail if
customers asking about them. 21.3% people are neutral, 31 % people are satisfied
and 4.3 % people are strongly dissatisfied 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
detail without 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.

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


property?

Valid Cumulative
Frequency Percent Percent Percent
Valid print
124 41.3 41.3 41.3
media
tv & radio 21 7.0 7.0 48.3
internet 16 5.3 5.3 53.7
outdoor
7 2.3 2.3 56.0
add
personal
86 28.7 28.7 84.7
reference
broker 46 15.3 15.3 100.0
Total 300 100.0 100.0
Total 300 100.0
140

120

100

80

60

40

20
Count

0
print media internet personal reference
tv & radio outdoor add broker

what source of information do you prefer while searchin for a property

The above Table and chart shows that most of the people prefer Print media (41.3
%) and personal reference (28.7 %) for searching house or property. And other
sources like Internet, Broker, TV & Radio, Outdoor advertisement are having 5.3
%, 15.3%, 7%, and 2.3% respectively.

Many people say that search of property through internet is very comfortable.
Because in a single click they can reach to a number of builders and their projects.
They were saying that mostly internet property web portal shows only marketing
detail of projects but if they will show legal and technical document of project so
searching property through internet 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 gives information about current
status of project with marketing details.
Many people were saying that buying or searching house or property through
broker is not safe because of their dual nature .Generally they are making hype of
the developers’ project and hide negative side of the project.

QUS.3 Choose your preferable location and types of house you want to
purchase?
area of preference

Valid Cumulative
Frequency Percent Percent Percent
Valid new delhi 139 46.3 46.3 46.3
ghaziabad 81 27.0 27.0 73.3
noida 49 16.3 16.3 89.7
gurgaon 20 6.7 6.7 96.3
others 9 3.0 3.0 99.3
faridaba 1 .3 .3 99.7
new delh 1 .3 .3 100.0
Total 300 100.0 100.0
Total 300 100.0

160

140

120

100

80

60

40

20
Count

0
new delhi ghaziabad noida gurgaon others faridaba new delh

area of preference

Majority of the people prefer Delhi as the location (46.3%), then comes the no. of
Ghaziabad and Noida with 27% and 16.3% respectfully, Gurgaon stands fourth
with 6.7%. The choice of area depends on the monitory condition and the facilities
available to people at a particular area.

➢ Most of the people want 3 BHK in NewDelhi area with price ranging from
35 to 55 lakhs.
➢ The demand for 2 BHK is bit less and varies from 15-20 lakhs.
➢ The demand for 1BHK is not much.
➢ People want 4 BHK in the range of 55 to 60 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 3 BHK or 4 BHK prefer luxury house.

Q: Consumers preference of information related to property document from


Real Estate web portal, past record of builders, and marketing details-

prioriority amongst the three

Valid Cumulative
Frequency Percent Percent Percent
Valid property
274 91.3 91.3 91.3
documents
marketind
15 5.0 5.0 96.3
details
past
11 3.7 3.7 100.0
records
Total 300 100.0 100.0
Total 300 100.0
300

200

100
Count

0
property documents marketind details past records

prioriority amongst the three

From the above we can conclude that before going to buy a


house people generally look for the property documents which comes up to 91.3%
of the total responses, then the marketing details and the past records come.

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

can't say

no

11

In this
question,
majority of the
people have a
view that there

yes
is a need for some regulatory body which can have a continuous eye on the real
estate sector.
Very less people say the answer as ‘No’, and least no of people have ‘No
reply’.

QUS.4: Do the Real Estate developers give possession timely?

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 107 35.7 35.7 35.7
no 156 52.0 52.0 87.7
can't say 37 12.3 12.3 100.0
Total 300 100.0 100.0
Total 300 100.0

can't say

yes

no

The answer of majority was not in favor. Out of 300 people,156 said ‘no’ to this
comprising of 52% of the whole population. Whereas 106 said ‘Yes’ and Rest
were in two minds.
Q: Do you think govt. takes necessary steps to provide house to the common
man?

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 98 32.7 32.7 32.7
no 148 49.3 49.3 82.0
can't say 54 18.0 18.0 100.0
Total 300 100.0 100.0
Total 300 100.0

can't say

yes

no

Majority said ‘No’ when asked this question and comprised of 49.3% of the total
answers, 32% said yes and 18% didn’t knew where to go.

Q. Cross Tabulation of the Place of preference & the Type of House which a
person likes to have.
C ount
plac e of preferenc e of a pe rs o n
new delhi gha z iabad noida gurgaon faridabad oth ers T otal
ty pe o f 1B H K 4 2 5 1 12
hou s e a 2B H K 24 25 15 7 3 3 77
c us tom er 3B H K
84 42 27 12 1 6 172
prefers
4B H K 15 9 3 5 2 2 36
P E NT
2 1 3
HOUS E
T otal 129 78 51 25 6 11 300

100

80

place of preference
60
new delhi

ghaziabad
40
noida

gurgaon
20
Count

faridabad

0 others
1BHK 3BHK PENT HOUSE
2BHK 4BHK

type of house a customer prefers

When the places of preference were cross tabulated with the types of houses the
consumers want then the result came out to be that:
• Majority of the public want 3BHK houses (i.e. 172) and that too the demand
is the most in Delhi (82).
• The least is the demand of the Pent Houses (total-3), which were in Delhi
and Noida region.
• There is very less demand of 1BHk houses in the NCR region which is
evenly distributed throughout.
• The demand for 2BHK houses comes second in the list with 77 out of 300
going for it. This is mainly concentrated in Delhi and Ghaziabad area.
• According to my survey, no one demanded Villas.

Q. Cross tabulation of the place of preference and the amount which a person
is willing to pay.

Count
A M O U N T W IL L I N G T O P A Y in L A K H S
1 0 -1 5 1 6 -2 5 2 6 -3 5 3 6 -4 5 4 6 -5 5 a b o v e 5 5 T otal
p la c e o f n e w d e lh i 5 18 60 36 8 2 129
p re fe re n c e g h a z ia b a d 4 17 32 17 7 1 78
of a n o id a 5 13 20 10 1 2 51
p e rs o n
g u rg a o n 1 6 10 7 1 25
f a rid a b a d 2 1 1 1 1 6
o th e rs 4 6 1 11
T o ta l 15 56 127 77 19 6 300

The graph below is self-explanatory:


70

60

50
place of preference
40
new delhi

30 ghaziabad

noida
20
gurgaon

10 faridabad
Count

0 others
10-15 26-35 46-55
16-25 36-45 above 55

AMOUNT WILLING TO PAY in LAKHS

According to the cross tabulation of the amount a person is willing to pay at a


particular place the results came out to be:

• Maximum people wanted to pay the amount ranging from 26-35 lakhs.
• The situation is same at all the places.
• Then comes the range between 36-45 lakhs. This trend is mainly at the
places like New Delhi, Ghaziabad, Gurgaon and other places. At Noida and
Faridabad areas people prefer 16-25 lakhs range.

Q. Cross Tabulation between the type of house a person is willing to buy and
the amount he is willing to pay.
C ount
A M O U N T W I L L I N G T O P A Y in L A K H S
1 0 -1 5 1 6 -2 5 2 6 -3 5 3 6 -4 5 4 6 -5 5 a b o v e 5 5 T o t a l
ty p e of 1 B H K 10 1 1 12
hous e a 2B H K 2 43 20 11 1 77
c u s t o m e r3 B H K
3 12 107 45 5 172
p re f e rs
4B HK 21 11 4 36
PENT
1 2 3
HO US E
T o ta l 15 56 127 77 19 6 300

The Cross-Tabulation of the types of Houses and their range shows the following
things:
• The demand for 3BHK houses with price range in between 26-35 lakhs is
the most.
• 3BHK is also in demand in the range in between 36-45 lakhs.
• The demand for 2BHK houses comes 2nd with the price range of 16-25 lakhs.
120

100

80

type of house a cust


60
1BHK

40 2BHK

3BHK
20
Count

4BHK

0 PENT HOUSE
10-15 26-35 46-55
16-25 36-45 above 55

AMOUNT WILLING TO PAY in LAKHS

Analysis of the three cross-tabulations:

• Majority of the people wanted 3BHK houses with price ranging from 26-45
lakhs in New Delhi.
• The demand for 2BHK houses comes next with price ranging from 16-25,
and 26-35.
• The demand for 2BHK houses is also there in range between 26-35 and 36-
45 lakhs and mainly in cities like New Delhi and Noida.
• The demand for Penthouses is very less.
• Also the majority of people want to live in Delhi,

Q.10: What all documents you should look before buying house?
Peoples are now very conscious about property document. They were saying that
while buying or searching property they check property document, but since most
of them do not know the all property document required to check that’s why there
is need to create awareness about property document and builders should show the
entire property document to customers themselves.
While survey generally people gave name of fallowing property document –
• Link chain ownership document.
• Registry
• Map approval doc.
• Kheshara- Khatauni
• Sale deed
• Intakhap paper
• 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.
Q: What are your expectations from the web portal?
The responses to this question were varied, like people said they
• They didn’t 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.

SWOT Analysis of Apeksha Group –


Strengths –
• Team of professional having technical expertise, past experience in the field
of marketing, Finance, Project audit and Media for real estate sector.
• A wide range of services on web portal compared to the other web portals.
• By creating awareness regarding the Marketing details, legal and technical
document of the project make consumer more satisfied.
• In recent years, organized sector has increased its share in the market
unorganized sector.

Weakness –
• Failure to curve the activities of the un-organized sector.
• Lack of project developer’s support in providing the legal and technical
documents.

Opportunities-
• The growing population of India.
• People are becoming more aware.
• Rapid urbanization.
• Increasing trust of people on real estate web portal.

Threats –
• Tough competition among web portal segment of real estate.
• Some illegal services provided by the Broker.
• Government policy.

5. FINDINGS AND CONCLUSION:-

5.1 Findings:
• Most of the people are dissatisfied from the real estate marketing
information provided by the real estate companies, but very few people are
strongly satisfied.
• 89% 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.
• 70.7% 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 satisfied compare 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 of builder 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.

5.2 CONCLUSION:-

Now a day’s 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 the selection of the right type of house for them. But majority of
the people are still unaware of the documents which they should look for before
going to buying a house. Here I have collected 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 total legalities, and collect as
much as information from the builders, and then only they can do their investment
with a free mind.
Thus because of the above reasons there is a need to create awareness among the
customers as well as project developers to give the customers the complete
information and the role of ‘TRUSTED PROPERTY’ to educate people is
appreciated in this regard.

6.SUGGESTIONS:
On the basis of my findings, I want to make certain recommendations as follows –
Recommendation to Apeksha build homes 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 people’s 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 learn from their experience.
• Company should make more contact with contractors and Architects to tap
more builders.

Recommendation 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 government’s policy related to ‘Real
Estate’.
Recommendation to Project Developer (Builder) –
• Builders should show their legal and technical documents to the customers,
to make them satisfied because most of the customers want to check it and
this also helps in creating a unique identity of the developers.

LIMITATIONS:-
• 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 were instances 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 Delhi
area was covered followed by Noida , Ghaziabad and Gurgaon.
• 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
scientific accuracy.
• Since the data is not evenly collected from the NCR region hence there is a
chance of biasness.

BIBLIOGRAPHY

Referred Books:

• Kothari C.R.- “Research Methodology” New Delhi Tata McGraw Hill In


(95-102)
• Kotler Phillip –“Marketing management “analysis, planning implementation
and control.
• Schiffman Leon G.& Kanuk Leslie Lazar, "Consumer Behavior", Prentice
Hall of India “6th edition
• Singh Harpreet–“Research Methodology”-Kalyani Publishers.(page no. 1-8,
68-102)
Referred Websites:

• www.apekshagroup.co.in
• www.trustedproperty.org
• www.indianrealestateforum.com
• www.google.com
• www.scribd.com
• www.propertywala.com
• www.indiatimes.com
• www.buisnessstanderd.com
• www.economicstimes.com

(NOTE-All the information taken from you is only used for research purpose)

TOPIC-Understanding the Consumer’s Perception & Expectations while buying a House.

Name- …………………………………………………………………………………………………

Profession- Govt. service Pvt. Service Business


Designation………………………………Name of organization/Company……………………………….

Contact No. +91-………………………. Email…………………………………………………………….

Age (in yrs) 25 to 30 30 to 35 35 to 40 More than 40

1) Rank the following detail according to their importance at the time of purchasing a property?
(Rank1 to the most important, 3 to least)

a) Property documents b) Marketing details of builder c) past record

2) Tick the options which match your preferable location and types accordingly?

Type
Location
1 BHK 2 BHK 3 BHK 4 BHK Penthouses Villas

New Delhi

Ghaziabad

Noida

Faridabad

Gurgaon

Others

3) 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) Can’t Say

5) How much are you satisfied from real estate marketing information provided by real estate companies?

a) Highly Satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

6) Do you think the govt. takes necessary steps to provide house to the common man?
a) Yes b) No c) Can’t say

7) What source of information do you prefer while buying /searching for a property?

a) Print media b) T.V. and Radio c) Internet

d) Outdoor Add. e)Personal Reference f) Broker

8) Do you think real estate web portal bridges the information gap between real estate developer and customer?

a) Yes b) No c) Can’t Say

9) 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

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