TRAINING PROJECT REPORT

ANALYSIS OF THE CONSUMER’S PERCEPTION

AND EXPECTATIONS WHILE BUYING A HOUSE

Commenced at MUKAT ENCLAVE PVT. LTD. (PATIALA)

in fulfillment of the requirements of the degree of

MASTER’S OF BUSINESS ADMINISTRATION

Session 2016-2017

SUBMITTED TO SUBMITTED BY
Dr. Apar Singh Rupinder Singh
Asst. Professor Roll No. 15421215
MBA-3RD Semester

School Of Management Studies

Punjabi University, Patiala

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 DECLARATION

I hereby declare that this titled as “Analysis of the Consumer’s Perception and

Expectations while Buying a House” is my original work under the guidance of Dr. Apar
singh Asst. Professor, school of management studies, Punjabi university, patiala towards the
partial fulfillment of the requirements for MBA course of Punjabi University Patiala. This has
not been submitted earlier for award of any other degree by Punjabi University Patiala or any
other University.

DATE: Rupinder Singh

PLACE: Roll No. 15421215

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 ACKNOWLEDGEMENT

It gives me tremendous pleasure in bringing out this project entitled “Analysis of the

Consumer’s Perception and Expectations while Buying a House” taken up during my final

year MBA degree course. I am thankful to Dr. Apar singh Asst. Professor for granting me
permission for this work and the help extended to me during the course of this project.
I express my deep gratitude and indebtedness towards my guide Mr. Jaspal Singh, Training
Guide, Mukat Enclave, Patiala for her valuable guidance and assistance through stimulating
discussion during the course of this project work.
Last but not the least I would like to thank my parents, friends and all other respondents for co-
operating with me in this work during my study and making this a successful one.

Rupinder Singh
Roll No.15421215

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 TABLE OF CONTENTS

CHAPTER 1: PAGE NO.

INDUSTRY OVERVIEW 7

CHAPTER 2:

COMPANY PROFILE 12

CHAPTER 3:

REVIEW OF LITERATURE 21

CHAPTR 4:

RESEARCH METHODLOGY 36

4.1) OBJECTIVE OF THE STUDY

4.2) SCOPE OF THE STUDY

4.3) DATA COLLECTION METHOD

4.4) SAMPLE DESIGN

4.5) DATA PROCESSING

CHAPTER 5:

DATA ANALYSIS AND INTERPRETATION 40

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CHAPTER 6:

FINDING AND CONCLUSION 60

FINDINGS

CONCLUSIONS

CHAPTER 7:

SUGGESTIONS 63

CHAPTER 8:

LIMITATIONS 65

BIBLOGRAPHY 67

ANNEXURE 69

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 EXECUTIVE SUMMARY

I started my project at Mukat Enclave, Patiala (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 Patiala 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 Patiala. 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 should check 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.

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 OVERVIEW OF

REAL ESTATE INDUSTRY

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OVERVIEW OF REALESTATE INDUSTRY IN INDIA.

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

Market Dynamics
The real estate sector in India is witnessing rapid growth in the residential, commercial and
industrial segments. Real estate development, once restricted to bigger cities, have shown
marked progress in smaller cities and towns owing to availability of banks loans, higher earnings
and improved standard of living.
The real estate sector of India is projected to post annual revenues of US$ 180 billion by 2020
against US$ 66.8 billion in 2010-11, a compound annual growth rate (CAGR) of 11.6 per cent.
The demand is expected to grow at a CAGR of 19 per cent in the period 2010-2014, with Tier I
metropolitan cities expected to account for about 40 per cent of this growth. As of now, Mumbai,
Patiala-National Capital Region (PATIALA) and Bengaluru cater for 46 per cent of total office
space demand in India. This demand is expected to be rise sharply in Tier II cities such as
Kolkata and Chennai in the period 2010-14.
Today, Patiala-PATIALA accounts for about 30 per cent of the total mall supply in India. About
53 per cent of demand for total mall space is projected to come from the country's top seven
cities, namely Patiala-PATIALA, Bengaluru, Mumbai, Kolkata, Pune, Hyderabad, and Chennai,
in the period 2010-2014.

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 Market size of real estate in India
The market size of real estate in India is expected to iPatialaease at a CAGR of 11.2 per cent during FY2008 – 2020.

Demand analysis of top 7 cities (‘000 units) 2010-14

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Investment Opportunities
The Indian retail realty sector is projected to grow at around 15 per cent year-on-year over the
next 3-5 years as against a 12-13 per cent nominal growth of India's GDP estimated by the
International Monetary Fund (IMF). If the sector does indeed manage the aforementioned
growth, it will touch Rs 34 trillion (US$ 544.73 billion) by 2016.
India's office space stock is estimated to rise by 40 per cent to 642.2 million sq ft by 2017,
according to a report by real estate consultancy Knight Frank India. The current Indian market
offers some of the most competitive rates in the Asia-Pacific region, according to a report by
property services firm DTZ. The report also states that Indian cities will have some of the fastest
rental growths in the region over the period 2013-17, but will remain among the most
competitive.
The share of luxury retail space in India will be 1.4 per cent by 2015, according to a report by
real estate services firm Cushman & Wakefield. PATIALA and Mumbai, areas that have
embraced the mall culture, are the two most favoured destinations for luxury retailers.
The construction development sector, including townships, housing and built-up infrastructure
garnered total FDI worth US$ 22,671.95 million in the period April 2000-August 2013.
Construction (infrastructure) activities during the period received FDI worth US$ 2,280.95
million, according to the Department of Industrial Policy and Promotion (DIPP).
The following are some of the major investments in the Indian real estate sector:
 Godrej Properties Ltd plans to invest Rs 9,000 crore (US$ 1.44 billion) in 15 new real
estate projects in India over the next 10 years.
 Unitech Ltd has signed a Rs 800 crore (US$ 128.17 million) deal to lease an 800,000 sq
ft space at one of its IT Special Economic Zones (SEZ) in Samana, to multinational
human resource firm, Aon Hewitt.
 NRI billionaire Mr Ravi Pillai plans to purchase stake worth about US$ 100 in a special
purpose vehicle floated by Pune-based realtor, Panchshil Realty. The investment will go
into the construction of Trump Towers and World Trade Centre in Pune, Maharashtra.
 Infrastructure Leasing & Financial Services (IL&FS) Ltd has claimed a project worth Rs
244.46 crore (US$ 39.17 million) from realty firm Emaar MGF for construction work at
the latter's residential project at Samana, Haryana.

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  French luxury hotel chain Sofitel, which is managed by Accor Group, is targeting 10
properties in India, mainly in major luxury destinations, in the next few years.
 One of the world's top manufacturers of elevators, US-based Otis, is setting its sights on
the Indian real estate market. The pace of construction in India makes the country an
attractive proposition for such an investment. The company will be working with the
Patiala and Hyderabad Metro projects. The former has placed an order for 222 escalators
for its Phase III project, according to Otis.

Government Initiatives
According to the existing FDI policy, 100 per cent FDI in the construction development sector is
permitted through the automatic route. DIPP is looking at relaxing FDI norms further to
encourage investment. It has also proposed a reduction in the minimum capitalisation for wholly-
owned subsidiaries from US$ 10 million to US$ 5 million, and from US$ 5 million to US$ 2.5
million for joint ventures with Indian partners.
One of the major initiatives of the Ministry of Housing and Urban Poverty Alleviation
(MHUPA) is to provide affordable housing for poor people living in urban areas. The Jawaharlal
Nehru National Urban Renewal Mission (JNNURM) is one its flagship schemes, a reform driven
investment programme which started with the objective of creating economically productive,
efficient, responsive and inclusive cities.
The Real Estate (Regulation and Development) Bill, 2013, as approved by the Union Cabinet is a
pioneering initiative aimed at delivering a uniform regulatory environment to protect the
consumer, help in quick verdicts of disputes and ensure systematic growth of the sector.

Road Ahead
India needs to invest US$ 1.2 trillion over next 20 years to modernise urban infrastructure and
keep pace with the burgeoning urbanisation, as per a report (India's urban awakening) released
by McKinsey Global Institute (MGI).
Demand for space from sectors such as education and healthcare has opened up opportunities in the
real estate sector. Also, growth in the number of tourists has led to demand for service apartments. This
demand in the tourism sector is expected to generate 50,000 new hotel rooms over the next four to five
years, across India's major cities.

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COMPANY PROFILE

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INTRODUCTION TO THE COMPANY

INTRODUCTION

They are an independent infrastructure provider

with committed customer base. Backed by a
group of dynamic investors from India and
Europe, Mukat Enclave Pvt. Ltd.s is one of
India’s most well capitalized real estate
company. Strong financial support and
engineering expertise makes us a quality
infrastructure provider with global presence.
The group is known in the Realty fraternity for
its professional might.

Implementation of new technology and innovation has been its constant goal and this is evident
in all its projects.

All these practices, policies, heritage, success and reputation are carried ahead by Mukat Enclave
Pvt. Ltd.s ltd.

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The Indian real estate sector is growing at a breathtaking pace. Outsourcing, the new phenomena
iPatialaeased the demand for commercial buildings and urban housing besides related
improvement in infrastructure. The stand taken by the government for FDI policies has given a
rise for the investments in the realty sector. Mukat Enclave Pvt. Ltd.s is willing to embrace all
the positive aspects of growth to cater to the changing trends.

With its experienced and professional team, EIL will carve a niche out of niche in the real estate
industry by changing the skyline of the developing cities in India.

EIL’S TEAM

The company's ability is to meet the special requirements of the real estate market and clients
demand from its strong foundations of professionalism. The group's strength lies in its panel of
dynamic, young, qualified and highly experienced management and dedicated marketing
professionals that take care of the entire activities keeping its main thrust on customer
satisfaction, which is the main motto of the company.

The structured & unified marketing model followed in EIL has helped in building a strong
network of channel partners both in residential & commercial segment.

EIL also has a dedicated customer care centre that comprises of experienced executives. A vast
database of customers is maintained and customers can call them up for inquiries, complaints &
feedback. Periodic training and on-site experience ensure that their staff is always geared
towards meeting the demands of the industry.

FOUNDATION

Vision

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To be the most innovative and trusted brand in real estate industry by adopting new technologies
with a focus on green and eco-friendly construction with focus to fulfill the expectations of the
customers.

Mission

ONE FACE, ONE VOICE

There will be one face, one voice of Earth for the outer world.

CUSTOMER CENTRIC ATTITUDE

To ensure complaint free operations with total customer satisfaction by resolving customer’s
issues with utmost attention and speedy services round the clock

BRAND VALUE

To deliver the projects ‘differently’ and make the customer to feel at ease and comfort and create
the ‘Brand’ a most trusted brand.

INNOVATION THROUGH TECHNOLOGY

Earth would be effortful and creative to identify and deliver something new, matching the
technological up gradation in the Realty sector, all around the globe.

CORPORATE SOCIAL RESPONSIBILITY

Earth would concentrate towards development of affordable houses for the masses, to reach to
the heart of all.

EMPLOYEE CULTURE

To keep on constantly searching for the talented employees, developing employee retention
policies, providing continuous training and development to facilitate them to contribute
completely in the growth of the organization

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CHARACTER, ETHICS AND VALUES

Earth would be governed by its professional policies and procedures to ultimately benefit its
values customers. The transparency of the policies would be maintained through the company’s
operational manual. Adhering to the manual would be mandatory for all, with tan ultimatum
objective to make the earth “Favorite of all’ and to create “Ethical Brand Value” within a short
span.

THEIR CORPORATE IDENTITY

The Earth Logo is an epitome of ancient history & modern architecture. The logo is a remarkable
union of the pyramid & the sphere.

The pyramid dates back to early civilizations & for thousands of years, the largest structures on
earth were pyramids. In architecture pyramids are considered as a monumental structure and are
looked upon with reverence & awe. The pyramids have set the foundation for many future
constructions.

The use of pyramid therefore makes a lot of sense for a company that deals in real estate. The
circumference of a sphere reinstates the values of Mukat Enclave Pvt. Ltd.s, as the earth is in
itself is a sphere. It renders a 3D feel to the logo. The presence of both the pyramid & sphere,
highlight the truth that Mukat Enclave Pvt. Ltd.s was born to create outstanding structures, that’ll
leave a deep imprint on future.

Also the latitudinal feel to the logo imbues a direction of growth. The logo symbolizes global
appeal, upward growth & progress. As like on planet earth latitudes, always spiral up and the
same outlook is hoped for the group too.

CODE OF CONDUCT

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Objective: Every action of the company & its employees is to provide 360 degree customer
solution at its door step. They ensure to provide full support for any compliance of the customers
or the stakeholders.

They are committed to continuously review and update their Policies and Procedures to initiate
policies and actions which are customer centric and which promote financial prudence.

Philosophy & Applicability of the Code - The Company expects, the Management to exercise
good judgment to ensure the interest, safety and welfare of customers, employees and other
stakeholders and to maintain a cooperative, efficient, positive, harmonious and productive work
environment in the organization. The Code needs to be followed while working in the premises
of the company, at offsite locations where the business is being conducted whether in India or
abroad, at company sponsored business and social events or at any other place where they act as
representatives of the company.

Employment/Outside Assignment – Members of Management are prohibited from engaging in

any activity / employment that interferes with their performance or responsibilities to the
company or otherwise is in conflict with or prejudicial to the company. Business Interest – If any
member of Management considers investing in securities issued by the company’s customer,
supplier or competitor, they should ensure that these investments do not compromise their
responsibilities to the company.

Related Parties – As a general rule, the Management should avoid conducting company’s
business with a relative or any firm, Company, Association in which the relative is associated in
any significant role.

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.

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  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.

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.

OBJECTIVE OF TRUSTED PROPERTY –

 Create a system where a Developer can be differentiated with unknown developer.

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  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.

FUTURE PROSPECT OF MUKAT ENCLAVE:

With easy availability of finance, emergence of double-income families, fall in prices due to
iPatialaeased 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, iPatialaeasing awareness of people regarding
property documents, smart management decision, hardworking employee shows very bright
future of Apeksha Group.

SWOT Analysis of Mukat Enclave–

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 iPatialaeased 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.

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 Opportunities-

 The growing population of India.

 People are becoming more aware.
 Rapid urbanization.
 IPatialaeasing 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.

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REVIEW OF

LITERATURE

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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

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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

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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.

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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.

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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

26
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

27
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

28
payment on the price of the home. In some instances you may have to iPatialaease your
deposit or iPatialaease 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
iPatialaeases 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

29
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

30
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

31
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

32
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?

33
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.

34
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.

35
 RESEARCH

METHODOLOGY

36
RESEARCH METHODOLOGY

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.

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.

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
iPatialaeases 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

37
customers of the real estate market. The survey is based on questionnaire filling method
and limited to some parts of Patiala 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

38
 view the objective of the study.
2. Secondary data is collected through internet sources, research papers, and published
reports by various institutions.

SAMPLE DESIGN:-

Study of the geographical area comprising of Patiala, Nabha, Sangrur, Samana, Rajpura
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.

DATA PROCESSING:-

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

39
DATA ANANLYSIS AND
INTERPRETATION

40
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

41
 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.

42
 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?

43
 Valid Cumul ative
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

44
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 Cumul ative

Frequency Percent Percent Percent
Valid pri nt
124 41.3 41.3 41.3
media
tv & radio 21 7.0 7.0 48.3
int ernet 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

45
 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.

46
QUS.3 Choose your preferable location and types of house you want to purchase?

Frequency Percent Valid Percent Cumulative

Percent
Patiala 139 46.3 46.3 46.3

Nabha 81 27 27 7.3.

Sangrur 49 16.3 16.3 89.7

Samana 20 6.7 6.7 96.3

Others 9 3 3 99.3

Rajpura 1 3 3 99.7

Khannna 1 3 3 100

Total 300 100 100

47
 160

140

120

100

80
139
60

40 81

49
20
20
9
0 1 1
Patiala Nabha Sangrur Samana Others Rajpura Khannna

Majority of the people prefer Patiala as the location (46.3%), then comes the no. of Nabha and
Sangrur with 27% and 16.3% respectfully, Samana 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 NewPatiala 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 Patiala region.
 Most of the people who are doing job or having business who want to purchase 3 BHK
or 4 BHK prefer luxury house.

48
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

49
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

yes

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

50
 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 s ay 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?

51
 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 s ay 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.

52
 Count
place of preference of a person
new delhi ghaziabad noida gurgaon faridabad others Total
type of 1BHK 4 2 5 1 12
house a 2BHK 24 25 15 7 3 3 77
customer 3BHK 84 42 27 12 1 6 172
prefers
4BHK 15 9 3 5 2 2 36
PENT
2 1 3
HOUSE
Total 129 78 51 25 6 11 300

100

80

place of preference
60
new delhi

ghazi abad
40
noida

gurgaon
20
faridabad
Count

0 ot hers
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 Patiala (82).

53
  The least is the demand of the Pent Houses (total-3), which were in Patiala and Sangrur
region.
 There is very less demand of 1BHk houses in the PATIALA 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 Patiala and Nabha 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
AMOUNT WILLING TO PAY in LAKHS
10-15 16-25 26-35 36-45 46-55 above 55 Total
place of new delhi 5 18 60 36 8 2 129
preference ghaziabad 4 17 32 17 7 1 78
of a noida 5 13 20 10 1 2 51
person
gurgaon 1 6 10 7 1 25
faridabad 2 1 1 1 1 6
others 4 6 1 11
Total 15 56 127 77 19 6 300

The graph below is self-explanatory:

54
 70

60

50
place of preference
40
new delhi

30 ghazi abad

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
Patiala, Nabha, Samana and other places. At Sangrur and Rajpura 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.

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 Count
AMOUNT WILLING TO PAY in LAKHS
10-15 16-25 26-35 36-45 46-55 above 55 Total
type of 1BHK 10 1 1 12
house a 2BHK 2 43 20 11 1 77
customer 3BHK
3 12 107 45 5 172
prefers
4BHK 21 11 4 36
PENT
1 2 3
HOUSE
Total 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
4BHK
Count

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:

56
 Majority of the people wanted 3BHK houses with price ranging from 26-45 lakhs in
Patiala.
 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 Patiala and Sangrur.
 The demand for Penthouses is very less.
 Also the majority of people want to live in Patiala,

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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.

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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.

59
FINDINGS AND

CONCLUSION

60
FINDINGS AND CONCLUSION

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 Patiala 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.

61
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.

62
SUGGESTIONS

63
SUGGESTIONS

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

Recommendation to Mukat Enclave 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.

64
LIMITATIONS

65
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 Patiala region and mainly Patiala area was covered followed by
Sangrur, Nabha and Samana.
 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 PATIALA region hence there is a chance
of biasness.

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BIBLIOGRAPHY

67
BIBLIOGRAPHY

Referred Books:

 Kothari C.R.- “Research Methodology” Patiala 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

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ANNEXURE

69
ANNEXURE: QUESTIONNAIRE
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
1 BHK 2 BHK 3 BHK 4 BHK Penthouse Villas
s
Location

Patiala

Nabha

Sangrur

Rajpura

Samana

Others

70
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

71