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PROJECT REPORT ON

REAL STATE

BY
NEHAL
IV SEMESTER
ROLL NO. 520834361
Analysis of the consumers perception and Expectations while buying
a house

SUMMER PROJECT
2009

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

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

NEHAL
Roll. No. - 520834361

UNDER THE GUIDANCE OF

Internal Guide: Mrs. Ahuti Bhargava


External Guide: Mr. Pranshant Mittal

COSMIC BUSINESS SCHOOL


NEW DELHI
DECLARATION

I hereby declare that the project report titled Understanding the Customers
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: 17/2/10 Submitted by:

Place: New Delhi. Nehal


COSMIC BUSINESS SCHOOL
MCIE MATHURA ROAD, NEW DELHI

This is to certify that MR.NEHAL has worked on the project entitled Analysis of
the consumers perception and expectations while buying a house for the
partial fulfillment of the requirements of MBA (batch 2008-10) for period of 60
days from 5th Aug 2009 to 3rd Oct 2009. This bonafied work has been done by him
under our supervision.

Ahuti Bhargava

( Faculty of Marketing)
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 Mrs. Ahuti Bhargava (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. Naveen Garg (Director and Board member.)
for giving me the opportunity to work and learn with GODIRECT INFOTECH. I would also like
to thank Mrs. Jasmeet Kaur (Manager) and Mrs. Seema Maan (Director, Product and
Strategy) 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 Arun Rahul (Vice President EMEA
Operations and Business Development), Mr. Saurav (Vice President Dubai), Mr. Sandeep
Agarwal (Director New Business Development), Mrs. Vidushi Gulia (Vice President HR)
,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 GODIRECT INFOTECH and CBS for their cooperation
and providing me the required information and resources and helping me throughout for the
successful completion of this project.

NEHAL
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 GODIRECT INFOTECH 25

2.3) GODIRECT INFOTECH 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 GODIRECT INFOTECH 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 5th Aug 2009 in GODIECT INFOTECH (A Real Estate


Consultancy Company) and was asked to study The consumers 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 consumers 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 nations 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 countrys 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 customers perception & expectations while buying


a house?

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


doesnt 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 GODIRECT INFOTECH ?

The work culture at GODIRECT INFOTECH 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. GODIRECT INFOTECH 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.
Its 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. Its 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 thats 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 (GODIRECT INFOTECH) :

Direct Infotech Limited is a multinational company. We have our


main base in The Netherlands with offices in Dubai and India. We
have business partners and our presence in U.S.A, U.K, France,
Canada, Belgium, Singapore and Surinam. Our main focus is to
provide a host of comprehensive web based business solutions.
Direct Infotech Limited has in-house software and marketing
professionals on its panel with extensive International business
experience. We have charted finest Business solutions that are in
line with global best practices.

To keep this pace we have developed few web portals in the area
of International real-estate, job market, International air
ticketing, marriage portal, and European Legal helpline. We
have lined up these portals to be very specific and domain oriented
to cater international markets as per International Standard of
business.

GoDirect is the brand name for our International property portal


and air ticketing portal, these are two very important industry
segments where mediator plays a important role, but even then
almost everybody prefers for a direct deal to save costs, so we
decided to have our brand name as GoDirect in these two industry
sectors, whereby the name explains itself about its nature of
business.

We believe in offering and getting the business solutions directly


24X7X365 days in the hands of users just at the click of mouse
button which ultimatlty saves lots of money and time for our users.

Real Estate
GoDirect is an internationally recognized leading Internet portal
owned by Direct Infotech Limited. With the real estate industry
witnessing a boom around the globe, the online property market
holds considerable opportunities. We have taken rapid strides in
developing new businesses in line with its proposition to offer
complete online real-estate services and solutions to our
clients and customers.

Direct Infotech Limited provides a complete platform for


independent owners, real estate agents and builders to
advertise their properties on the Internet and for potential
buyers to search for properties around the globe. This easy
to use web portal offers an extensive search feature that allows
you to locate property by region, area, price, amenities and
availability with property photographs.

So if youre looking to buy, sell or rent a property and need to do it in a private


hassle free environment then log in at godirect.in, godirect.co.in, godirect.fr or
godirect.com.es its the right place for you.

GoDirect.in is a site that gives you what you need without any
annoying stuff and any mediator. We have tried our best to keep
everything simple and easy so that even a child can understand
and easily work with it.

Direct InfoTech Limited is offering a ready to use Web based & retail
counters as single sales platform in national and International real-
estate market where builders can showcase their projects to NRI and
HNI Customers/Investors, which is altogether a different concept in
Indian real-estate market.

To achieve this target we have a tie-up with UNICON India, who is


already an established leader in the market having more than 150 own
established offices and more than 500 Franchise spread across all
cities of India and +7000 dedicated workforces. Direct InfoTech
Limited and UNICON India will be known as one identity in the market
with a brand name UNIDIRECT for real-estate project underwriting in
future.

Go direct is the brand name used by DIL in real-estate market which is


a FREE Global search engine to search properties and property buyers
internationally; our database is initially configured for 8 countries
namely India, The Netherlands, U.S.A, Canada, U.K, Dubai, Singapore
and Surinam with a possibility to configure another 50 countries in its
engine, which makes it possible to do business globally.

Go Direct value proposition lies in being the only company in India


with an International reach and unique concept in real-estate sector.
Today Go Direct have a success story with more than 50000 residential
and commercial properties listed on its website www.godirect.in and
more than 135000 users registered till date

OBJECTIVE:
Direct Infotech Limited provides a complete platform for independent
owners, real estate agents and builders to advertise their
properties on the Internet and for potential buyers to search
for properties around the globe. This easy to use web portal offers
an extensive search feature that allows you to locate property by
region, area, price, amenities and availability with property
photographs
BOARD OF ADVISORS

Mr. A.Chauhan, Director and Board Member

Mr. A. Chauhan a truly global citizen has spent nearly two decades in
Europe and U.S.A is the Director and Board Member of Direct InfoTech
Limited he is also the Additional President and Board Member of the
Ritnand Balved Education Foundation, the umbrella organization of the
Amity institutions, which currently have over 45,000 students in 130
programs of 70 institutions across 600 acres of hi-tech campuses with
3.1 million sq. ft. of built up area. Mr. A. Chauhan is also the CEO of
the Cross border Group

Mr. A.Chauhan has made investments of over $500 million globally. He


was formerly with AEA Investors, a multi-billion dollar private equity
firm in New York which invests funds for current and former Fortune
100 CEOs and wealthy families across the world.

He has also been with Mercer Management Consulting providing


strategic advisory to leading companies in New York , London and
Hong Kong , and with JP Morgan in investment banking.

Mr. Chauhan is on a number of committees including the Government


of Indias National Committee for Biotechnology Policy and the CII
National Committee for Higher, Technical & Vocational Education.

Mr. Naveen Garg, Director and Board Member

A qualified IT professional turned entrepreneur, and a Dutch National,


he have been living and working in The Netherlands. Before starting
Direct Infotech Limited he had worked for few well-known top
multinational companies in Europe, U.S.A and Japan for more then
10 years, he is a qualified Project Manager from U.K.

He is responsible for the overall profitability & success of Direct


Infotech Limited. Naveen manages the execution of the Mission, Vision
& Values of the Company and ensures the scalability of the business
model and growth of the business in Europe, Asia pacific region and
U.S.A.

Mrs. Seema Maan Director (Product and Strategy)


and Board Member

Seema is responsible for the definition of Direct Infotech


Limited corporate strategy and future vision of the Godirect
brand.

She has more then 15 years of experience in international


property business and have worked before for few
multinational companies in Europe before joining Direct
Infotech Limited.

Mr. Arun Rahul, Vice President, EMEA Operations and


Business Development

Arun is responsible for scalability of the business model and growth of the business in
Europe.

Arun is an MBA from Punjabi University, India and presently CEO of Taurus Europe BV,
The Netherlands, an associated group company of Direct Infotech Limited. Arun has
proven track record in International business with multiple years of experience.

He has successfully managed to achieve the targeted US$75 Million revenue for the
company in year 2007 and at the same time expanding the companys business in UAE
and HongKong . Taurus is a distribution setup in IT industry.

Before venturing into Taurus Europe BV , he was leading EMEA operations for eSys
Technologies and was instrumental in building 500 US $ million business within
the region. eSys Technologies, global distributor of IT, is a US$ 2
Billion international group with offices in more than 30 countries. Arun
has been part of eSys success story for 6 years.

Mr. Saurav, Vice President Dubai Business


Development

Based in Dubai, Saurav is responsible for the profitability & success of


Direct Infotech Limited in Middle East Region. Saurav ensures the
scalability of the business model and growth of the business in Dubai.
He operates from Dubai office. Sourav, masters in Marketing and
Finance from Middlesex University in United Kingdom is Executive
Director with Taurus Technologies FZE-UAE, an associated group
company of Direct Infotech Limited.
He made valuable contribution in achieving the targeted US$75 Million
revenue for the company in year 2007 and at the same time
expanding and handling the companys business in Dubai and Hong
Kong.

Mr.Sandeep Agarwal, Director, New business


development
Sandeep agarwal is one of our directors, he is man of knowledge base
for Direct Infotech Limited, he have more than 20 years of
experience in managing international property portals, he is a very
well known personality in the Asian business community, known for his
commitment and management.

Under his valuable guidance and rich experience godirects new


business unit is established in connaught place, New Delhi .

Mrs. Vidushi Gulia, Vice President (HR)

Mrs. Vidushi Gulia is a MBA from the University of Aberdeen, United


Kingdom. She is a person with a big smile on her face and ready to
help nature all the time. Vidushi have proven track record for her
achievements in the area of talent search in all kind of job profiles.
The most interesting part in her main qualities is that she is a person
who knows how to keep the employees happy and motivated in the
company from HR point of View. Vidushi has over 5 years of work
experience in the financial organizations like Yes Bank and Bajaj
Capital as well as a HR consultant to few mutinational companies.

She will be the main contact point and will be responsible for all
human resources related activities for Direct Infotech Limited in India
and The Netherlands.

Mr. Rakesh Agarwal, Finance Manager (C.A)

Mr. Rakesh Agarwal is a professionally qualified charted accountant. He


is a Delhi born man of numbers, very specialised in the area of Indian
and foreign tax matters, he is been working with very well known
corporate in India and Europe from last 30 years.
In direct infotech limited he will be looking after the entire group
financial part.

B&B International Law firm, Our Official Legal


Advisers for U.S.A, U.A.E, Europe and India

B&B was formed in 1996 to service the legal needs of local and
international business clients.

B&B association with leading overseas firms in U.A.E, India, Europe


and the USA ensures that clients can tap into an unrivalled network of
expertise and experience for international transactions. B&B
capabilities extend across the commercial law spectrum, with
particular expertise in trade regulation law, joint venture projects,
securities, local and international partnerships and agency
agreements. The firm also advises on activities privatization, financial
markets, investment laws and regulations, and the registration and
protection of intellectual property rights in the U.A.E, India, Europe
and U.S.A. It provides full representation to clients before the
respective Court of law in all these countries.

2.2 SERVICES OF GODIRECT INFOTECH :

GODIRECT INFOTECH provide following services to customer

International real-estate
Job Marketing
International air ticketing
Marriage portal
European Legal helpline

2.3 GODIRECT INFOTECH CONCEPT----- TRUSTED


PROPERTY (www.trustedproperty.org)

Trusted Property, a concept designed by GODIRECT INFOTECH, 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 GODIRECT INFOTECH :

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 Godirect Infotech.

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 customers perception.

2. To determine the customers 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
companys 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 respondents 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

yes
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?

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% didnt knew where to go.

Q. Cross Tabulation of the Place of preference & the Type of House which a
person likes to have.
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

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
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:


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.
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
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 thats 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 didnt know.


They wanted Transparency.
They Wanted the Web portal to provide the complete information.
Some said they want the timely information.
Some wanted the Web portal to highlight the full information of the
Developer.
Some even wanted all the legalities to be cleared by the Web-portals and
then displayed on it.
Q: What Problems have you faced while Dealing with the REAL ESTATE
DEALERS..?

There were varied Responses to this question


Majority said that they wanted to get rid of the brokers.
Some said they wanted the Developers to display their complete information
on line and to the customers.
There were people who wanted Hidden costs to be absent.
Some wanted to get rid of the false promises.
Almost all of the people wanted that the Developers should show
transparency and provide them with each and every form of information
which they wanted.
SWOT Analysis of GODIRECT INFOTECH

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 developers 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 days people who go for buying a house have become more aware about
what they should look for and the information they should seek, and are more
concerned about 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 GODIRECT INFOTECH 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 peoples need and
necessity. And for that they can open daily polling on their web portal.
Company should not always try to attract the new customers only, but should
also take feedbacks from existing once, and try to remove their problems and
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 governments 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 HarpreetResearch Methodology-Kalyani Publishers.(page no. 1-8,
68-102)
Referred Websites:

www.godirect.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 Consumers Perception & Expectations while buying a House.

Name-

Profession- Govt. service Pvt. Service Business


DesignationName 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 Penthouses Villas

Location

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) Cant 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) Cant 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) Cant 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

TrustedProperty.org E2-Building, 1st Floor ,

Amity, Sector-125,

Noida-201301. Mobile-9711157237

Contact Us
They have our offices at following locations The Netherlands, Dubai and India
.

India Office:-

ATBI, E2 Building, Ist Floor,


Sector 125, Noida-201301,
Uttar Pradesh,
India

Contact Person:- Naveen Garg, Director Direct Email:- naveen.garg@godirect.in

The Netherlands Office:-

Planetenweg 17,
2132HN, Hoofddorp
The Netherlands

Contact Person:- Arun Rahul Garg (Vice President, EMEA Region) Direct
Email:- arun.garg@godirect.in

Dubai Office:-

P.O Box no. 120,


378 SAIF Zone,
Sharjah
U.A.E

Contact Person:- Saurav Garg (Vice President, U.A.E) Direct Email:-


saurav.garg@godirect.in