Real Estate Business | Assignment
12 Pages2543 Words354 Views
Added on 2019-11-19
Real Estate Business | Assignment
Added on 2019-11-19
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IntroductionReal estate business is one of the most lucrative businesses in the world market today. Investors tend to change from temporary/ short term investment to a permanent investment (Spertino et al, 2013). As compared to other businesses, real estate business in most of the cases experience continuous increase in the value. The business involves both buying of a bare piece of land and selling, putting up a house structure on a piece of land then sell and also just buying and selling of already built houses. The value in the real estate business tends to be appreciating all the time due to value increase in the pieces of land (Tiwari & White, 2010). Before venturing into real estate business, there are various factors that the business people need to consider just like in other normal business opportunities. Negotiation skills are some of the required attributes for those aspiring to engage in real estate business or those who already are running the business (Rothaermel, 2015). These skills are deemed important in this kind of business especially when negotiating prices with the willing buyers and the willing sellers. On top of that, prior knowledgeabout the trending price is as well helpful for they act as the reference point at the time of negotiating prices with the customers so that prices are not overstated or understated (Bewayo, 2015). Another key factor to consider is the population of the location of the business. Population is always allied with good business performance (Graham et al, 2011). As a result therefore, highly dense populated areas tend to have businesses thriving well than those in less dense populated areas (Hahan et al, 2011). The business was then chosen to be situated and operate in five cities such as Belton, Terratae, Mount, Domaine and Hills. The services that will be rendered by the real estate agency in these cities will be buying pieces of land, constructing houses, renting out houses, leasing houses and selling the built houses to the willing buyers. Since the business is
from new investors and the business is still new, thorough market research incorporated with advertisements should be held viable to make the business have wider coverage in the cities. Televisions, radios, newspapers, magazines, social media and other platforms should be engaged in carrying out the advertisement to create awareness to the public to expand and win the trust of the customers. Advertisement will also ensure that wider market is covered and that the business stands a better chance of competing with the competitors favorably (Wagner et al, 2013). In connection to that, advertisement will wipe off the middlemen from the channel. As a result therefore, to have all of these done, more man power have to be engaged in the business and the more the number of workers, the larger the size of the business. In this case, the business size will be relatively big since more professional services will need to be hired. The prospected customers for this business are the residence and the willing investors who would be looking for apartments for hire in the cities.Research questionsIn order to identify and know what happened in the previous market in the previous years, data was collected covering the location of business (cities), the number of bathrooms houses in the cities were having, the number of bedrooms, the total number of rooms houses had in the cities, the advertisement cost and the prices that were labeled against the house in different cities. Data was to be used to construct research questions that would be helpful in identifying the behavior of the market and to find the strategies to venture into the market in the defined cities. Some of the objectives that were identified in this report were to determine if there was relationship between the listed cost and the final sale of the houses. Secondly comes to determine the relationship between all rooms the houses had and the listed cost and lastly, to determine the relationship between all the rooms a house has and the final sale. All these stated objectives will
only be met if the research questions are answered. The first question then becomes; “Which is the best city to invest in among the five sampled cities?”Cost labeled against every product is one of the determinants of the value the product hold. Depending on the persuasive and the bargaining power of the involved parties in the buying and selling process, the listed cost can at sometimes be higher than the final sale. In the case where the listed cost is lower than the final sale, then it is either the product has been sold at a discount or the buyer had higher bargaining power than the seller. And if the real estate product had higher final sale than the listed cost, then it is either that the value of the real estate product had appreciated due to some added values to the product or the seller had higher bargaining power than the buyer. As a result to that therefore, we are interest to have a question that “Is there relationship between listed cost and the final sale?” Responding to this question will help the owner of the business know how to treat the two or consider them at any time they are making any transaction. It is in the minds of the many without proof that a house with the highest number of rooms will have the highest listed cost as compared to others that were having less number of rooms. To ascertain the change and the effect, this report is therefore bound to answering the question “Is there a relationship between (All rooms) and the listed cost of the houses in the cities?” Any sort of relationship that is found existing between these two variables will mean that any change in the number of rooms will definitely have effect on the listed cost.Lastly, we have also sparked interest in determining the relationship that exist between all rooms a house has and the final sale of the house. As a result therefore, we pose a question: “Is there relationship between all rooms a house has and the final sale of the house?” response to this question will also be viable to the decision makers of the business in that they will be required to
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