ACKNOWLEDGEMENT

In the Name of Allah S.W.T, Most Gracious and Most Merciful. All thanks to the Almighty
who has bestowed His Grace so that I can successfully complete this Research. First and
foremost, I would love to thanks to my RES510 Research Methodology and Computer’s
Lecturer, Dr Mohd Zaki Bin Arif for the valuable guidance and advice. He inspired and
encouraged me and my group mate greatly to work on this research. His willingness to
motivate us and criticism contributed tremendously to our study. I also would love to thank
him for showing me the rope regarding this research. In addition, I would love to thank the
authority of Universiti Teknologi MARA (UiTM) Cawangan Perak, for providing me with a
good environment and facilities to complete this research proposal as well as to obtain
various related information such as library for me to access the information.
Next, I would also love to thank my fellow classmates of AP225 5A for sharing some
valuable information as the guidance of this research. Finally, an honorable mention goes to
my beloved family and siblings for their understandings and supports on me in this research. I
am grateful for the helpful assistance that I had received from everyone. I am truly thankful
as without help from them, I would face many difficulties while doing this Research.

Thank you.
TABLE OF CONTENT

1.1 INTRODUCTION…………………………………………...…..………………...1,2
1.2 PROBLEM STATEMENT…………………………………...……..……………….3
1.3 RESEARCH OBJECTIVE…………………………………….…..…………...…….4
1.4 RESEARCH QUESTION….………………………………………………………...4
1.5 RESEARCH METHODOLOGY………………………………………….....4,5,6,7,8
1.6 SCOPE OF STUDY..........…………………………………………...........................9
1.7 RESEARCH APPROACH…………………………………………………………...9
1.7.1 DATA COLLECTION TECHNIQUES………………………………………....10
1.7.2 DATA ANALYSIS TECHNIQUES………………………………………………...11
1.8 LIMITIATION.................................……………………………………………......11
1.9 SIGNIFICANCE OF STUDY…………………………………..……………..........11
2.0 LITERATURE VIEW…………………………………………..………..................12
2.1 ORGANIZATION CHAPTER…………………………………………...…….......15
2.2 REFERENCES………………………………………………..…………………….17
1.1 INTRODUCTION
BACKGROUND
Buying a house nowadays is very common toward us especially buying the affordable
house that offer the middle prices where it consider people are capable to buy it. National
Property Information Centre (NAPIC) said “Housing will remain as the top priority by the
Government and all related agencies are joining efforts to ensure that houses are made
accessible and more affordable for the households, be it in terms of ownership or renting”
(Mahalingam, 2018). This is a good opportunity toward people in order to own property for
themselves. The diagram below show the increasing of property transacted from a year 2016
to 2017. This fact show that, people now are continuously buying property for their own self.
Increasing in property transaction also may improve the national economic growth and
indirectly can improve the national income. Nowadays, people are getting reliaze how
important in purchasing real estate because they find that by purchasing the property and
keep it as investment may make them gain some capital appreciation or they can also use it as
to gain income by owning the properties.

Property Market Report,2017

In order to buying a property, the buyers either can buy by himself, which from the
direct with developer or they also can buy the property from direct owner. However, in
dealing in property transaction is not easy, It involves legal documents and statutory
requirements that may be unfamiliar to ordinary consumer and difficult for them to
understand (Stamsø, 2015). The adequate of knowledge in real estate are very important
before buyer to decide in buying or selling their house. At least, the buyer know something
about their property that they intent to buy, and not because the eager to have a house and
find its lovely than quickly decide to purchase. It’s important to make the right decision when
house shopping – and know what you’re in for as you aim to get those keys in your hands
(Hoffower, 2018). It’s a good idea to attend property talk or try to communicate with a right
person who have deep knowledge in real estate for example real estate agent, property
consultant, and other people that have adequate knowledge to guide buyer.

Real estate agent is a selas person that have to attach to Real Estate Agency Company.
Only those who are registered under the Board can act as estate agents and real estate
negotiator. They provide a service in buying, selling, leasing properties for clients so that,
optimum returns can be achieved (Valuers, Appraisal Estate Agents and Property Managers
Act 1981, 1981). Real estate agent act as an intermediary between buyer and seller to
matchup their client to buy or seller property.

This research aims in investigating and determine what are the knowledges needed
before buying a property and to identify the most important knowledges needed before
buying a property. This study will be identified by carrying out a comprehensive literature
review as stated in the following section.
1.2 PROBLEM STATMENT

Nowadays, trend of buying house especially at the young age is very popular among
people. Instead of buying property for their own stay, the aim of buying property is for
investment purposes, like what Cardoso (2015) said “Home buyers were encouraged by the
potential investment returns”. Plus, there are a lot of housing scheme that offer people to own
property. A lot of strategy and initiative created by all the seller in order to ensure people are
attracted to their offer and willing to buy unit that there are offer. Sometimes the offer that
been offered to the buyer doesn’t make any sense but in reality, it can be happen. For
example, some developer offers zero deposit and down payment, and if you lucky they will
also offer some cash rebate. This method usually being used by property developer, property
agent even sometime the direct owner also used same technique in order to find buyer for
their unit for sale.
But, in the eager of people to buying property, there must be some people will take
advantages toward them in property dealing. The chairman of The Malaysian Institute of
Estate Agents (MIEA) Johor Branch said, there have been many cases of property buyers
getting swindled, in addition he said Board of Valuers, Appraisers and Estate Agents
Malaysia (BOVAEA) have received about 50 to 60 such complaints each month (Sen, 2017).
Mateja Kos Koklic and Vida (2009) quotes that, it is believed that in the early stage of the
buying process, decision makers usually do not have sufficient information.
Some people will look at this issue as easy thing but what if the things is come up to
you, there will be one of your horror parts of your life. Mateja Kos Koklic and Vida (2009)
said that empirical research suggests that consumers have a very limited knowledge about
houses and the buying process and emphasize that gaining additional knowledge is critical
importance. Many people don’t have enough knowledge regarding the buying and selling of
property where this transaction is not just like buying nasi lemak at road side stall but it
involves many complicated legal process and many documents in order to make the deal
success. This scammer which are the illegal real estate agent are encouraged by the continues
demand of property from people today where in the challenging market. Board of Valuers,
Appraisers and Estate Agents Malaysia (BOVAEA) encourages the public to seek the
representation of registered practitioners and negotiators when selling, purchasing, letting or
renting property (NST, 2016).
 This issue happens when this illegal estate agent usually charged the fees are more
than percentage that been stated on standard prepared by BOVAEA. Moreover, compare to
other register real estate agent/negotiator where they have been trained and attend courses as
guideline to practice this dealing.
Other than that, instead of having eligibility to own property, buyer also must have
adequate knowledge in the real estate before doing some dealing. A home buyer has to
prioritize the various factors that must be considered before buying a house (Levy, 2004).
Many Americans lack basic knowledge of mortgages and the home-buying process (Lerner,
2017). The absent of preparation and lack of knowledge in real estate may cause disputes if
any issues while dealing is ongoing. Many people, especially first-time buyers, make the
mistake of buying a house immediately after walking into a sales gallery and listening to the
sales person talk (NST, 2016). The knowledge is needed because if anything happens while
in dealing at least the buyer can detect and counter it at the right time. Dominic Heaton-
Watson Senior Manager Knight Frank said do a bit of research first before signing the sale-
and-purchase agreement (Begum, 2017). But in the present of legal real estate agent in
helping buyer and seller to buy and sell their property will less their pressure to ensure the
dealing are going well. This preparation of knowledge is needed to ensure the buyer will not
be cheated and play by those who was not responsible and even they can’t have a chance to
trick buyer to deal with them.

1.3 RESEARCH OBJECTIVES

The research is designed to determine what are the knowledge needed before buying a
property. According to the problem statements mentioned, the objectives are specified as
below:
 To determine the knowledges needed by buyer before buying house
 To identify the most important knowledges needed by buyer before buying house
1.4 RESEARCH QUESTIONS

Therefore, a few research questions have been brought out from the issues stated above
which are as follows:
 What are the knowledges needed by buyer before buying house
 What are the most important knowledges needed by buyer before buying house

1.5 RESEARCH METHODOLOGY

Research Methodology is a method in collecting data for the study. Other than that, it
is a method to gather all the information and find a brief conclusion of the research. The
collection data of this research come in various methods that can divided into various steps of
research. Each step will be conduct to complete the research.

This research will be conducts using qualitative methods. The steps start from a
comprehensive literature review is on the knowledge needed by buyer before buying house.
Some questions will be ask in the interview session to the respondents which are register real
estate agent or real estate negotiator. All the result will be analysis by using content analysis
method and the result will be made through the analysis software which are Nvivo software
which is the software that can analysis for content analysis of this research. The result receive
will be made up as conclusion when the research being finalized.

Based on the comprehensive literature review, the researcher will figure out more
information about what are the knowledge needed by buyer before buying house and what are
the most important knowledge needed by buyer before buying. A lot of data will be analysis
and citation in the literature review for the reference toward the researcher
 FLOW CHART OF RESEARCH METHODOLOGY

PROBLEM IDENTIFICATION

DEVELOPMENT OF OBJECTIVE, AIM

AND SCOPE OF STUDY
PRIMARY DATA
QUESTIONNAIRE
INTERVIEW SESSION

LITERATURE REVIEW/DATA
COLLECTION
SECONDARY DATA
WEB PAGES
RESEARCH PAPERS
ARTICLE /JOURNALS
ANALYSIS OF DATA

FINDING AND RESULTS

CONCLUSION AND RECOMMENDATION

1.5.1 PROBLEM IDENTIFICATION

The first stage in research process is by defining the problem statement that
leads to the objectives of this research. A problem statement will outline the negative point or
issue that need to be investigate. A problem statement also could indicate an interest in an
issue where finding the right answers that might help in order to improve the existing solution.
The statement of the problem is important in this research process where it is why a research
is carry out.

For this research, the problem statement are the lack of knowledge of buyer
before buying house where may lead to many undesirable cases which make the buyer
unsatisfied after doing transaction, such as fraud are recorded while dealing a transaction, the
house received after the transaction not in the good condition and others that may lead buyer
unhappy toward the house

1.5.2 DEVELOPMENT OF OBJECTIVE, AIM ANF SCOPE OF STUDY

The research objective will be act as guideline of this study in order to achieve the objective.
This study will be considered success and finish when the researcher already fulfils the
objective of this research. Objective also will lead the works of researcher and also become
their target as they will not study more than the objective or out of their target. As for this
research the objective that the researcher want to achieve are:

 In determining knowledges needed by buyer before buying house

 In identifying the most important knowledges needed by buyer before buying house
1.5.3 LITERATURE REVIEW

This literature review will be the grouped of information gain and further explanation
regarding the title of the research. It ensure that the readers are completely knows the content
of the research. Moreover, the readers will know about the direction and purpose of it. The
explanation will be conducted by breaking down some important keywords based on the
previous research made and other reliable sources.

With literature review, it will help the researcher to improve the knowledge and also
give an idea to the researcher in order to develop a good problem statement. The instrument
that can be used in order to find for the literature review are include books, journals,
newspapers, magazines, conference proceedings, dissertations and thesis, government
publication and also financial report. The purposes of literature review are including:
1. To find problem
2. To find topic and get the information from the previous research
3. To find the methodology for the purpose of data collection
4. To find variable
As for this research, the literature review will cover on the element of the knowledge need by
buyer before buying house

1.5.4 COLLECTION OF DATA

This research will adopt a qualitative technique by using primary and secondary data in
collecting the information.

1.5.4.1 PRIMARY DATA

The definition of primary data is the data that being collect at the first sources. It is known as
the data which are collected from researcher that has been done under researcher control and
supervision. All the information and data is obtained from the respondents which are real
estate agent or real estate negotiator. Interview will be carried out to obtain the related
information about this study. The sources from interview sessions will be used as primary
data for this research
1.5.4.2 SECONDARY DATA

Secondary data is the data that has been collected from another sources. This data involves
less cost, time and effort. It consists the published data which be taken from books, journals,
articles, newspaper and previous study as it can be referred from internet and UiTM Perak
library OPAC.

1.5.5 DATA ANALYSIS

This part will be analysing the results after the interview been done. The data will be
analysed based on the interview session that will be conduct. The data will be analysis by
using content analysis by using Nvivo software in order to get result.

1.5.6 CONCLUSION AND RECOMMENDATION

In this part the result of data analysis to conclude the findings in the research are. This
chapter will conclude whole chapter of this study. The reflective opinion and suggestions for
improvement also will be supplied and mention in this chapter.

1.6 SCOPE OF STUDY

The scope of this study is focusing on determine what are the knowledge neede by buyer
before buying house and what are the most important knowledge need by buyer before
buying house. The scope of study is limited to real estate agent or real estate negotiator who
base at Cheras.
1.7 RESEARCH APPROACH
This research conducted by a method which is qualitative analysis. Qualitative
analysis will be done in this research and which the data collect by using the interview
session with the respondents. The respondents will answer all the question given and
researcher will analysis the data by using the content analysis in order to get the result and the
outcome for this study

INSTRUMENT DEVELOPMENT
The research instrument that will be used in this study is open-ended question. In
order to ensure the research objective is achieved, the entire item in the instrument must be
carefully constructed. This question consist of a type of technique which are, open ended
question. They have a chance to answers all the questions and the answer can be longer and
sentence in order for them to answer the questions.

1.7.1 DATA COLLECTION TECHNIQUES

Data collection is the steps that taken by the researcher to collect either the data from
the respondent which is the primary data or from any reading of the secondary data. In order
to collect the data for this study, the researcher use the qualitative method which is open
ended question where respondents will be interview by the researcher. Interviewing session
with the respondents will be held in order to gain the information need. Other than that, the
researcher also use the secondary data such as journal, books, article and newspaper for the
collection of data.

1.7.2 DATA ANALYSIS TECHNIQUES

After stage of data collection, the researcher need to interpret all the data in order to
get the report on the data collection. For data analysis, the method that wil be used is content
analysis method and intreprating the responden data where this method is suitable to be used
in analysis the data.
1.8 LIMITATIONS

The problems face by buyer will be determined in this research beacause they know more
about property then buyer because they have practise in their profession. The respondents are
the real estate agent or real estate negotiator that base at Cheras. The limitations of this Study
listed as follows:

 This research will study on what are the knowledge needed by buyer before buying
house only.
 This research will interview real estate agent and real estate negotiator around Cheras
only.
 The several number of respondents will be select. The information and data from
respondents will be acquired in the interviewing session

1.9 RESEARCH SIGNIFICANCE

This research is expected to benefit for the following parties:

a) Homebuyer

Homebuyer can be defined as a persons who not own any house or property to stay and
have they intention to buy a house. All people have intention in buying property, usually
it would be the young generation who wanted to start their new journey of life. Usually
the homebuyer will be the person who have fixed or maintain salary in every month in
order to pay monthly instalment toward the financial institution, but it in certain cases
also the homebuyer will be the one who have ability to acquire it by his own without need
the fixed monthly salary or income. Base on Cambridge Dictionary, homebuyer can be
define as a person who is buying a house or an apartment. Teng (2011) defined purchase
intention as customer prospective in planning to purchase a particular product or services
in the future.
 b) Investor

Investor is a person or corporation carry out capital and invest it in order for financial return.
The investor doing investment is to grow their money and income and enjoy for their
retirement where money are work for them. Real estate investment is one of the selected in
investment medium in order for them to achieve financial return.

Real estate agent who act as a middleman between buyer and seller in order to match their
need. The competitive among the real estate agent make them hard to find client. They have
to find alternative to make sure their business stay long last and will be demanded this service
to all people in Malaysia
2.0 ORGANIZATION CHAPTER

In this part, brief descriptions of all chapters were written. All of the five (5) chapters in
this report are organize as the followings:

a) Chapter 1 is the introduction explains to the reader of research field which

describes the problem statement and provides components of research background.
This chapter also explained the research aim, research questions and objectives and
then followed by foreseen significance of the research. Here, this chapter provides
briefly outline of research methodology and scope of research that is adopted.

b) Chapter 2 reviews relevant literature in knowledge need by buyer before buying

house that explores the matter related to the house particular for example physical
characteristic, financial capability, location of the house. Topics covered include:
explanation about what is knowledge, how it related to real estate knowledge, who is
home buyer, knowledge for house physical characteristic, knowledge in selection of
house location for buyer and others. The literature review identifies the research
gaps which justify the need for this research.

c) Chapter 3 explains about research methodology that adopted in the research.

Besides, this section will give explanation on how the data are collected.

d) Chapter 4 explains the findings of Chapter 3. The explanations are based on the
research objectives and development of theoretical framework.

e) Chapter 5 is the final chapter summarizes key findings of the research, outlines the
contribution of this research to the industry and academic. Also, this chapter
highlight some limitations of the research and explains some recommendation for
possible future research.
 LITERATURE REVIEW

I. Introduction
II. Knowledge in General
(a) Theory of Knowledge
(b) Type of Knowledge
III. Important Knowledge in Real Estate
IV. Knowledge to consider before buying house
(a) Physical Characteristic of House
(i) Property Condition
(ii) Numbers of rooms
(iii) Size
(b) Location of House
(i) Neighbourhood
(ii) Workplace
(iii) Public Transport
(iv) School
(v) Facilities and amenities
(c) Financial capability
(i) Price
(ii) Interest Rate
(iii)Debt Service Ratio (DSR)
V. Procedure in buying house at Malaysia
INTRODUCTION

This study was conduct on various information and the second sources such as articles,
reports, books and newspaper in order to achieve the objective in this study. All information
provided more understanding and support to carry out this study. The literature review will
consider pertinent literature within knowledge need by buyer before buying house. The
foundation of the research defining the meaning of knowledge in buying house. All these key
term will be discuss for view and understanding for researcher.

DEFINITION OF KNOWLEDGE IN GENERAL

Knowledge is difficult concept to discuss, past literatures have identified the distinctions
between data, information, and knowledge. Based on Faizuniah Pangil and Nasurddin (2013)
data is commonly described as a set of discrete, objective facts about events, while
information is a collection of data and associated explanations, interpretations, and other
textual material concerning a particular object, event, or process. According to Bergeron
(2003) knowledge is as information that is organized, synthesized or summarized to enhance
comprehension, awareness, or understanding. Similarly, Karlsen and Gottschalk (2004)
defined knowledge as information combined with experience, context, interpretation,
reflection, intuition and creativity.

Davenport and Prusak (1998) sees knowledge as:

“A fluid mix of framed experience, values, contextual information, and expert insight that
provides framework for evaluating and incorporating new experiences and information. It
originates and is applied in the minds of knowers. In organizations, it often becomes
embedded not only in documents or repositories but also in organizational routines, processes,
practices, and norms.”

Knowledge can be categorize into 2 categories which are declarative and procedural
knowledge. Declarative knowledge is basically the ‘knowing that’ type of knowledge which
relates to factual information, while procedural knowledge is the ‘knowing how’ type of
knowledge which concerns the process underlying actions (Leach, Wall, & Jackson, 2003)
THEORY OF KNOWLEDGE

Knowledge mention by (Dr. Alex Bennet, Dr. David Bennet, & Avedisian, 2015) can be
consider containing of two parts:

1) Knowledge (Informing)
2) Knowledge (Proceeding)

Knowledge (Informing) is the information (or content) part of knowledge. While this
information part of knowledge is still generically information (organized patterns), it is
special because of its structure and relationships with other information. Knowledge
(Informing) consists of information that may represent understanding, meaning, insights,
expectations, intuition, theories and principles that support or lead to effective action. When
viewed separately this is information even though it may lead to effective action. It is
considered knowledge when used as part of the knowledge process. In this context, the same
thought may be information in one situation and knowledge in another situation.

Knowledge (Proceeding), represents the process and action part of knowledge. It is the
process of selecting and associating or applying the relevant information, or Knowledge
(Informing), from which specific actions can be identified and implemented, that is, actions
that result in some level of anticipated outcome. There is considerable precedent for
considering knowledge as a process versus an outcome of some action. "The actuality of
knowledge is a living process that is taking place right now" and that we are taking part in
this process (Dr. Alex Bennet et al., 2015). Note that the process our minds use to find, create
and semantically mix the information needed to take effective action (i.e., knowledge) is
often unconscious and difficult to communicate to someone else.
 Knowledge (Informing) and Knowledge (Proceeding)

Justified true belief represents an individual's truth, it may whether judging personal
experience or judging the experience of others, the beliefs and values that make up the
personal theories, all developed and reinforced by personal life experiences, impact that
judgment. Therefore, it is acknowledged that an individual's justified true belief may be based
on a falsehood (Dr. Alex Bennet et al., 2015) However, if it is used to take effective action in
terms of the user's expectations of outcomes, then it would be considered knowledge from
that individual's viewpoint. Note that this is only one part of Knowledge (Informing), and that
our beliefs and theories are part of the living process described above (Dr. Alex Bennet et al.,
2015). The term "memory" is used as a singular collective and implies all the patterns and
connections accessible by the mind occurring before the instant at hand.

How important to have knowledge and must always seek for knowledge while we still alive
such well as our beloved Prophet Muhammad (SAW) said about it in these words: “Seeking
knowledge is an obligation upon every Muslim” (Majah).
TYPES OF KNOWLEDGE

These areas or types of knowledge can be grouped or organized according to similarities and
differences, what could be called a knowledge taxonomy. As a framework for recognizing
and working with knowledge, the following taxonomy offers a useful grouping for
understanding different types of knowledge from the viewpoint of what knowledge is needed
to do a particular type of work or take a particular action.

The categories in this taxonomy include

1) Kmeta
2) Kresearch
3) Kpraxis
4) Kaction
5) Kdescription
6) Kstrategic
7) Klearning
Based on (Dr. Alex Bennet et al., 2015),

a) Meta-Knowledge

Meta-Knowledge represents the capacity to understand, create, assimilate, leverage, sculpt

and apply various types of information and knowledge. Since most complex situations
contain several disciplines and categories of knowledge use of metaknowledge (knowledge
about knowledge) also includes the ability to bring different types of knowledges together.
Base on previous study by (Paquette, 1999) meta-knowledge is at the heart of the learning
process, which consists in transforming information into knowledge which are:

1) Attribute value to knowledge: Truth, Beneficial, Usefulness, Importance, Competence

toward knowledge
2) Intellectual action, process facilitate knowledge process: Memorisation,
understanding, Application, Analysis, Evaluation
3) To acquire, process and use the knowledge: Memorisation technique, problem solving,
project management strategies

b) Kresearch (Research- Knowledge)

Evidence base knowledge which includes theoretical as well as empirical knowledge and
represents the fundamental concepts that explain why things happen. Base on Cambridge
dictionary, research define a detailed study of a subject, especially in order to discover (new)
information or reach a (new) understanding. Such knowledge serves as a guide for setting
expectations and possibilities and provides the user a level of confidence

Such as: evidence based, theories, laws, principles, relationship, attributes and guidance
comprehending phenomena

c) Kpraxis (Practice-Knowledge)

Practice knowledge represents the practical understanding of situations and how they change
or can be changed. It’s related to rules, how the system apply, change and adaption. It will be
gain by the time it practice.
 d) Kaction (Action-Knowledge)

Action-knowledge is represents the ability to take specific actions that achieve the desired
result. It includes understanding the local context and situation within which the action is
taken. Action base on Dick (1993) action is to bring about change in some community or
organisation or program. For example, the implementation of the action, guides for the action

e) Kdescription (Description-Knowledge)

Description such descriptive information is information that informs the what, who, when and
where of a situation. Stonier (1992) said all knowledge is composed of information, but all
information is not knowledge. Knowledge is information that, when combined in the mind
(associated or complexed), creates understanding, meaning and, where action is involved, the
anticipation of its outcome.

f) Kstrategic (Strategic-Knowledge)

Base on Business Dictionary, strategic can be define as decisions or plan design to ensure that
the actions taken are in consideration of their long-term impact and are consistent with the
strategy, identity, and values of the organization. While this is a high-level type of knowledge
(and thinking), note that this refers to the information, processes and patterns used to apply
other information, processes and patterns in a strategic way. This means that many different
types of knowledge can be used as strategically

g) Klearning (Learning Knowledge)

Learning knowledge includes individual, group and organizational learning. This focus is to
ensure that as a situation or process unfolds, individuals learn from each other and, when
appropriate, build organizational learning into a task outcome to ensure that the organization
is capable of adapting to future changes in the environment

Related in buying property, this situation can be related with this element of
knowledge which are Kresearch (Research Knowledge) and Kdescription (Description
Knowledge). This is because the research knowledge which need to be proof by the evidence.
It can be like evidence based, principle, relationship which if we related toward the buying
house it must be the true and valid cases, relationship or any principle that related to property
which can make the buyer to understand the true situation on buying property.
IMPORTANT KNOWLEDGE IN REAL ESTATE

Related in buying a property, in buying a property the buyer must ensure that himself have
ready and have adequate knowledge toward the property. Daly, Gronow, Jenkins, and
Plimmer (2003) stated that greater knowledge of the factors which influence buyer behaviour
will lead to better understanding and prediction of decision making in real estate markets. It is
believed that in the early stage of the buying process, decision makers usually do not have
sufficient (Mateja Kos Koklic & Vida, 2009). Plus, consumers have a very limited knowledge
about houses and the buying process Mateja Kos Koklic and Vida (2009). Previous research
emphasize that gaining additional knowledge is of critical importance A home buyer has to
prioritize the various factors that must be considered before buying a house (Deb,2005).

DEFINITION OF REAL ESTATE

Residential property such as house, apartment, townhouse and any building attach to the land
are part of real estate. Base on Oxford Dictionary, real estate can be define as property
consisting of land or buildings. Analogous to book Real Estate Principle 6th Edition(1993)
where real estate or real property is define as land and the improvement made to land and the
right to use them, where the improvement is anything affixed to land with the intent of being
permanent is consider to be part of the land and real estate. However all the real estate can be
identify where it attach to the land including it located at the water or above the land.

Definition of land by Sec 5 of ("National Land Code," 1965):-

a) The surface of the earth and all substances forming that surface
b) The earth below the surface and all substance therein
c) All the vegetation and other natural products, whether or not requiring the periodical
application of labour to their production, and whether on or below the surface
d) All things attached to the earth or permanently fastened to any thing attached to the
earth, whether on or below the surface
e) Land covered by water

However according to Uchenna Cyrill Eze and Lim (2013), real estate is one of the most
significant asset classes, contributing significantly to the national economy, involving
building, machinery, the acquisition of various property rights and others. However, the most
common related terms of real estate in this study is building, which is typically classified in
two categories: residential property and commercial property (Christudason, 2004)
WHO IS HOMEBUYER

Homebuyer can be defined as a persons who not own any house or property to stay and have
they intention to buy a house. All people have intention in buying property, usually it would
be the young generation who wanted to start their new journey of life. But in owning a
house/property, it must be depend on their capability to buy it whether now or in future.
Because in buying a house, it will involve a lot of procedure and financial commitment, a lot
of things need to be taken into consideration to make this important decision. Usually the
homebuyer will be the person who have fixed or maintain salary in every month in order to
pay monthly instalment toward the financial institution, but it in certain cases also the
homebuyer will be the who have ability to acquire it by his own without need the fixed
monthly salary or income. Base on Cambridge Dictionary, homebuyer can be define as a
person who is buying a house or an apartment. Teng (2011) defined purchase intention as
customer prospective in planning to purchase a particular product or services in the future.

KNOWLEDGE TO CONSIDER BEFORE BUYING HOUSE

Nowadays Malaysia market has shown a sign of maturity, with more educated and
sophisticated house buyers tending to become selective and demand (Thaker, 2015). People
who buy homes not only for a shelter but they are also seeking to express their values and
aspirations (Abdullah, Nor, Jumadi, & Arshad, 2012). A lot of things to be consider before
you going to buy house. It is a must you as buyer to do some of checklist toward the
particular property before they consider and decide to buy it (Khan, Azmi, Juhari, Khair, &
Daud, 2017) said the most important in buying a house is the satisfaction of owning a house.

Variables beyond your control may also arise, so take the time beforehand to arm yourself
with as much knowledge as possible (Ryan, 2016). Things to be consider before considering
buying house stated by previous literature for example the location as mention as Jansen,
Coolen, and Goetgeluk (2011), he said the location is the main factors that lead to quality
housing and welfare homes. In other hand, other researcher also have stated for others things
to be consider like price by (Kueh & Chiew, 2005). Besides that, previous literature also
highlighted some of importance things need to look at also such as location, physical
characteristic, financing, particular of property, and others which will be discuss on this study.

Ratchatakulpat, Miller, and Marchant (2009) has sorted list some of the most important factor
that consider by the prospective buyer base on their previous study. Base on the diagram we
can see that the top 5 of the most things to be consider by the buyer are
 KNOWLEDGES

Maintenance and Good Phychological of the

Affordability Size and congiration
Design area/Neighbourhood property

Important factor consider by buyer by (Ratchatakulpat et al., 2009)

1) Maintenance and design

2) Affordability
3) Good area/neighbourhood
4) Size and configuration
5) Psychological of the property

However, other previous study conducted by Khan et al. (2017) resulted show that there are
several factor that the first home buyer to be consider before buying house. All these things
have be recognise by him as buyer consider in order for them to not be misled while they get
into deal in buying those house in future.

Item
Economic
Financial
Structure
Location
Demographic

Finding by Khan et al. (2017) for knowledge to be consider

Hence, this study is prepared to explicitly prioritise the knowledge need to be consider by
buyer before buying house. This research is important in highlighting the knowledges which
would provide useful source of information. The present study is expected to produce
significant findings to all people that involve in buying house especially the first home buyer
in Malaysia.
PHYSICAL CHARACTERISTIC OF HOUSE

Refer to Cambridge Dictionary, physical can be related to things you can see or touch or
relating to the law of nature, while characteristic is a typical or noticeable feature of someone
or something. The combination of both words define the physical feature and structure of
things which if related to property is physical characteristic of the house where we can see
and touch of that things.

Related to property, physical characteristic of property such as their wall, roof, ceiling, paint,
kitchen, rooms, size and others (Chia, Harun, Kassim, Martin, & Kepal, 2016) said house
features as house internal attributes such as quality of building, the design, as well as interior
and exterior design; which are important for a consumer when they select and purchase a
house. Also mention by Sean and Hong (2014), where structural attributes consider all
physical conditions and the quality of the property, common structural attributes consist of
size of living hall and dining hall, built-up size and number of bedrooms and bathrooms.
Those are important things as buyer to alert of the physical characteristic of the house. Mateja
Kos Koklic and Vida (2009) say buyer believes that the characteristics of a certain product
should fulfil his/her goals and needs, the choice of a product will also reflect a person’s self-
concept and his/her lifestyle. According to (Rahman, 1994) a person is deemed in (buying
unit) to have examined the house and purchased it in his / her state at the time of the purchase.
So, it very important to identify and know what the buyer are really is buying from the
purchaser.

Previous study stated that, physical characteristic can be divide into several factors, which
are:-

Physical Characteristics by (Adair, Berry, & McGreal, 1996)

Physical characteristic of the house to be buy must be aware by buyer. For the sake of their
future if necessary to hire some professional to do some inspection toward the property it is
worth compare when you get the wrong step and find out the property that you acquired got
problems. But once if the condition of the property is satisfied then the buyer will very happy
to deliver the property with them.

Property Condition

By checking the condition of the property in term of the quality or the type material use also
must be consider for the property buyer. Choguill (2008) say the age of the house also will be
taken into consideration in the decision making process of buying house. s. Two significant
choice criteria with respect to a house as a product were quality of the product and its price
(Mateja Kos Koklic & Vida, 2009). Buyer have to be particular in buying house because this
will be burn by them for many of years.

Number of rooms

Number of rooms must be counting and consider for the buyer in order to pack all the family
members in the house. Refer to (Cambridge), room define as a part of the inside of a building
that is separated from others parts by walls, floor and ceiling. (Green, Malpezzi, & Mayo,
2005) mentioned that the floor area, the number of rooms and bathrooms is obviously an
aspect that is taken into consideration. Similar to Suaid, (2012), found out that household size
also determines the needs of family members that living in a size and number of rooms.. Plus,
Hurtubia, Gallay, and Bierlaire (2010) observed that household size can be measured by the
number of people living in a house

Property Size

All property have their own size and design. Most of the property that develop by developer
have similar in term of size because they built simultaneously but for the house that built in
the own land, the design and the size of land will be different. Built-up is a main factors in
the household decision-making process for upgrading, the built-up is usually determined by
its size (Tan, 2012). Property size will be include the land size of the property. According to
Hurtubia et al. (2010) family with kids would prefer a simple design and with extra space for
move around
LOCATION OF THE HOUSE

Generally, based on Oxford dictionary location is particular place or position. In choosing

property, location will be the one of the important things for the buyer to consider. Miron
(2004) stated that the factors that people should consider before buying a house are location,
location and location. Similar to Jansen et al. (2011), he said the location is the main factors
that lead to quality housing and welfare homes. Survey conducted by (Sundrani, 2018), 92
per cent of respondents believed that location is everything while purchasing a house . Daly
et al. (2003) confirmed that location has a major impact on the buyer’s preference in
purchasing residential properties in Australia, UK and Ireland. Distance is also an important
factor that affects buyer’s preference in the decision-making of property buyers.

Location is of utmost importance in real estate (Ratchatakulpat et al., 2009). It is a must

knowledge to consider before buying a house is the location of the house. This is because, the
property will be stay by the owner. Imagine if the owner not satisfied with their new acquired
house which they will bare it at very long term of period. Many factors to be consider in
selection of location for property

Previous researcher has mention that a desirable location is determined by (Steven C.

Bourassa, Martin Hoesli, & Sun, 2005) which are:-

 Place of work (Grønhaug, Kleppe, & Haukedal, 1987),(Lindberg, Gärling, &

Montgomery, 1989), (Kochera, 1999).
 Friends and relatives (Grønhaug et al., 1987), (Lindberg et al., 1989) (Kochera, 1999),
(Rahadi, Wiryono, Koesrindartoto, & Syamwil, 2015)
 Facilities (Sirgy & Cornwell, 2002)
 Public transportation (Steven C. Bourassa et al., 2005), (LeSage & Charles, 2008)
 Distance to a bus stop (Saaty, 1990), (Levy, 2004)
 Good schools (Grønhaug et al., 1987), (Lindberg et al., 1989), (Kochera, 1999),
(Levy, 2004),(Steven C. Bourassa et al., 2005), (Flurry & Burns, 2005), (Zahirovic-
Herbert & Turnbull, 2008), (LeSage & Charles, 2008).
Neighbourhood

Some previous researcher highlighted that surrounding neighbourhood also must be consider
where as mention that households were prepared to pay a premium price for a property in a
good neighbourhood (Tan, 2012). According to Choguill (2008), neighbourhood is a space in
which residents live together for a common interest. Location must be safe for buyer, the
location also must be far way from any hazard that potentially to be happen and might be
cheaper than the others. Hazard such as record of crime, any natural disaster which recorded
often occur in that area. MacDonald, Murdoch, and White (1987) recorded that places that
are located in areas with enhanced hazards, such as flooding (or proximity to a chemical
factory), are arguably low-priced

Place of Work

Considering on the place of work within the how to be acquire also is a must in order to easy
the owner to go to their work. In term of times and cost for travelling must be consider in
selecting the location of the house. Accessibility accounts for travelling costs and benefits
associated with the different activities that the household members will perform at different
locations in the city (Hassanudin Mohd & Thaker, 2015). San (2016) mention that proximity
to work place has an impact to me when buying a house in Setia Alam.

Public Transport

Public transport is parallel with economic growth and somehow will helps in disseminating
information such as business opportunities, reduce sprawl and create a scenario where it is
good to live. Government initiative to easy people daily work and it may reduce the cost of
living by built them a lot of public transport for people to use for their facilities. Almatarneh
(2013) stated that standard amenities such as transportation, educational area and utilities like
electricity and water supply areas also an important role for property buyers to decide which
property will give them the appreciations
Facilities and Amenities

Base on Cambridge Dictionary, amenities can be defines as something’s that is intended to

make life more pleasant or comfortable for the people in town, surrounding facilities and
amenities within that area for example school, clinic, universities, supermarket and others
which give benefits toward people. Almatarneh (2013), stated that standard amenities such as
transportation, educational area and utilities like electricity and water supply areas also an
important role for property buyers to decide which property will give them the appreciations.
He also stated that a compound that has an efficient and effective facilities, good amenities
supply within area will make the home owner feels more safely and enjoys residing there.
Moreover, it also supported by Yakob, Yusof, and Hamdan (2012), a well-planned zone for
the use of land residential, provision of open space and recreational areas and community
facilities are among the aspects that can generate impact on people's living environment.

School Area

In considering toward buyer children also play some important role in selecting the property.
In term of far away toward their places for the facilities or congestion even the distance to
send their children also must be consider. According to for families with school-aged children,
“a good school” is the single most important determinant as compared with empty nesters

Location can be categorise in one of the most factor to be consider in buying property,
either for own stay or for investment. In order to select the location, the buyer must have
knowledge upon the decision. In consideration of all the places of neighbourhood or location
such as place of work, school area, facilities and amenities which may impact the buyer in the
journey on he going and go back from his house. If the location is not bring the satisfaction
toward the buyer for example he feeling the house is too far which incurring much time to
arrive then it will make the buyer unhappy toward the house. Sometimes with all this
facilities by time to time may increase in its value because of the demand and the strategic
location of the house toward the public transport. All these location must be consider by the
buyer before they making any decision in buying property, is not must to have all the factor
in a location but if the more the factor within that area the higher the potential to be choose
in term of location to own that particular property.
FINANCIAL CAPABILITY

Everybody have a dream in having a house at least once in their life. But price is probably the
most important aspect in the decision-making process of buying a property (Rönnqvist &
Mattiasson, 2009). By owning a house it is presenting one of your ultimate dream have been
achieve. Phillips (2016) said before you agree to buy what you think might be your dream
house, consider your long-term plans. Most people who buy a home will purchase it through
a bank loan or facility or their employer's loan. And as a buyer after borrowing from those
lender of course will be charge on interest.

Buying property is the one of the biggest financial commitment that you will burden it in
your life. Usually it will be given in certain period of time as stated in agreement. But, in
burden of length of 30 to 35 years of loan repayment toward financial institution is not that
easy, its mean that you have chain yourself by financial institution for a very long of time.
Financial attribute is also an important factor when considering a house purchase, (Thanakon
Ratchatakulpat , Peter Miller , & Marchant, 2009). Grønhaug et al. (1987) have warned that
households may have serious problems in making wise strategic purchase decisions, buying a
house is a long-term decision from at least two aspects: it is financially binding, and it is the
sort of product ‘consumed’ in the long run. If a customer’s willing to spend money to buy a
properties, he or she more likely to have higher intention to purchase it (San, 2016). Similar
to Lutfi (2011), he said those below 30 years old are less likely to commit to buying real
estate because many will not reach their financial stability. All those previous researchers told
us that if the current financial capability of buyer is not stable, it not suitable for him to buy
property that higher than what he can afford. Diagram below highlighted by Adair et al.
(1996) some of things to be consider before buying house and buyers have to make the right
decision for their future pleasure .

(Adair et al., 1996)

Price

Most of the buyer will find the most affordable property price for them. Capability to owning
house is base on the capability buyer’s to commits instalment toward the financial institution.
(Chiu & Ho, 2006) suggest that the income level will change and can be classified into
several groups such as low income, high, medium and. He also suggests that, the selection of
a house will vary based on the level of income related to their ability. The price also can be
considered as a key factor for the property buyer in making any decision to buy a house (San,
2016), buyers will look into factors such are design, accessibility, facilities, community
concept and security. In addition, external factors also influence the housing prices which are
the speculator itself (Bajari & Kahn, 2005). Kueh and Chiew (2005)reported that house
buyers in Kuching consider price as the most important factor for consideration

Debt Serving Ratio (DSR)

Debt serving ratio is an indicator for buyer and for bank to see how much you can borrow and
eligibility for buyer to service the monthly instalment for the loan. Base on Investopedia, debt
service ratio or DSR is a debt service measure that financial lenders use as a rule of thumb
when determining the proportion of gross income that is already spent on housing-related and
other similar payments. Buyer have to check the capability and percentage that given by
financial institution base on their salary or income. With this indicator buyer will find how
much he can borrow from the bank. Below are the list of the percentage of Debt Service
Ration for each bank in Malaysia:-

List of Debt Service Ratio (DSR) by each of bank Malaysia

Bank Net Income DSR Max % Net Income DSR Max %

Maybank <RM 3499 40% >RM 3500 70%
CIMB <RM 2999 60% >RM 3000 75%
RHB <RM 2204 55% >RM 2205 60%
BSN <RM 2999 60% >RM 3000 75%
HSBC <RM 2999 60% >RM 3000 70%
Hong Leong <RM 2999 60% >RM 3000 80%
Bank Gross Income DSR Max % Gross Income DSR Max %
Affin <RM 4999 60% >RM 5000 80%
Bank Islam <RM 2999 50% >RM 3000 70%
Updated: November 2018

Interest rate

Adair et al. (1996) and Daly et al. (2003) grouped interest rate, maximum mortgage,
maximum monthly payment and length of time payment have to consider into financial factor.
All financial institution have their own interest rate for mortgage matter. This rate will be
base on the base lending rate by their own institution. Interest rates, such as the BLR, are
directly correlated with the housing market, as the sensitivity of change in interest rates may
affect the demand for properties (Tan, 2012). This interest will be charge for the lending of
the money on buyer buying house. Meaning that, the buyer will have to pay the price of the
house to buyer and also have to pay interest for the loan in reply that have borrow the money
for the buyer base on the period that agreed by both parties.

Bank Intrest Rate (%)

Citibank 4.65
MBSB 5.05
AIA 4.99
Maybank 4.55
Public Bank 4.62
Standard Charted 4.72
HSBC 4.60
RHB 4.70
Bank Islam 5.40
Hong Leong 4.65
Affin Bank 4.70
AmBank 4.75
CIMB 4.90
Bank Rakyat 5.55
Updated: November 2018
PROCESS BUYING HOUSE IN GENERAL

Buying property is not like buying Nasi lemak at the stall. It will take a lot of paper work and
document in order to ensure your purchasing period don’t face any problem in the future.
Commitment is very important for the buyer including follow up, tracking agent work, update
latest process and others, this may ensure the process will be run easier. You'll feel more
confident about your home buying journey when you understand what is required of you and
every other person who is involved in the transaction (Wickell, 2018). This timeline is a
process of buying house, it will help people with a simplified but important step-by-step
guide towards your property purchase (Iproperty, 2018)

Select Property to
Purchase

Finish ! You are Sign

property owner offer/acceptence

Vacant possesion of Pay 3% as earnest

the property deposit

Register transfer at Owner sign letter of

the land registry offer

Get SPA Stamp &

Hire lawyer/solicitor
pay stamp duty

Pay remaining 7% to
Sign Sale&Purchase
makeup 10% of
Agreement
deposit

Property Transaction process by (Iproperty, 2018)

Steps:

1) Select property to purchase

2) Sign letter of offer/Acceptance
3) Pay a 3% earnest deposit of the purchase price
4) Owner and seller sign letter of offer/acceptance
5) Sign the sales and purchase agreement (SPA)
6) Hire solicitor/lawyer
7) Pay remaining 7% to make up 10% of down payment/deposit
8) Get SPA stamp & pay stamp duty
9) Register transfer at the land office registry
10) Vacant possession of the property
11) You are property owner

In buying property, you have to select the best what do you think that the best for you.
After considering the property condition, location and the capability you to commitment with
bank then you can sign the agreement to purchase of the particular unit. For the seriousness
of buying property usually owner will ask for 3% as the earnest deposit. This is a fair
situation toward the owner and the buyer if the buyer run away and not continue the process
then the deposit will be burn. After paying the earnest deposit and submitted loan, if the loan
has approve then they have to find the solicitor as their stakeholder in this transaction. The
solicitor will call both buyer and seller in order to sign sales and purchase agreement. Within
this period, buyer have to complete the balance of deposit at 7% in order to makeup 10% of
deposit. Lawyer/solicitor appointed will stamp the Sale & Purchase agreement and make it
stamp for further process. All the registration, consent from the state government will be
handle and settle by the appointed lawyer until the hand over the key for the new owner of
the property.
CONCEPTUAL FRAMEWORK
 Matric Table of previous research on the knowledge needed before buying house

No. Knowledge Authors Year

1. Physical Characteristic Chia 2016
Rahadietal 2015
Saw and Tan 2014
Kohler 2013
Suaid 2012
Cheah 2012
Jansen et al. 2011
Hurtubia 2010
Ratchatakulpat, T., Miller 2009
Koklic, M. K., & Vida, I 2009
Choguill 2008
Green et al 2005
Miron 2004
Adair, A., Berry, J., & 1996
McGreal, S.
Panduan Membeli Kediaman 1994
2. Location Mohd Thas Thaker, H., & 2016
Chandra Sakaran, K
Chin, K. S 2016
Rahadietal 2015
Almatarneh, 2013
Yakob et al 2012
Jansen et al., 2011
Tan’s 2011
Ratchatakulpat, T., Miller 2009

Choguill 2008
LeSageandCharles 2008
Morris 2005
Bourassaetal 2005
Miron 2004
SirgyandCornwell 2002
Saaty 1990
MacDonaldetal 1987
Gronhaug et al 1987
3. Financial Capability Kelly Phillips 2016
Mohd Thas Thaker, H., & 2016
Chandra Sakaran, K
Chin, K. S. 2016
Bajari 2015
Lutfi 2010
 Tan 2010
Mattiasson & Rönnqvist 2009
Karsten 2007
Chiu & Ho 2006
Daly e t a l. 2003
Adair, A., Berry, J., & 1996
McGreal, S.
Gronhaug, Kleppe, and 1987
Haukedal

Summary

In summary this chapter defines all the knowledge needed before buying a house. It also
clarified why all those factor need to be consider in along way before buying house. The
literature reviews also discuss the type of knowledge and how to consider whether the house
is good for the buyer. Diagram below show the conceptual framework between the buyer and
knowledge needed before they make decision to buying house.
CHAPTER 3

RESEARCH METHODOLOGY

Introduction

The methodology of the research will be explained the chapter of research methodology
where every components of the methodology were provided with detailed description. All of
the methods that being used in the collection of data involving primary and secondary data
are being explained in full detail. The crucial role of this chapter is to describe the research
method in that will be use clearly, determine its type, the method used in collecting data and
process of data analyse.

These study will collect the data which are the knowledge needed by buyer before buying
house and will focusing to real estate agent or real estate negotiator that base at Cheras,
Selangor Malaysia.

In this chapter, question will be design and it will be tested through pilot study where it will
be conducted in this research. The respondents will be the real estate agent or real estate
negotiator where the respondents will be interviewed based on the question constructed and
the all the responses of the respondents will be evaluated. The data obtained will be analysed
using content analysis.
RESEARCH DESIGN

Identify the issue and problem from journal, articles, news paper and past
research

Addressing the objective of the research and develop research questions

 To identify knowledge needed before buying house

 Identify the most important knowledge needed by buyer before buying
house

Process of gathering data and information

SECONDARY DATA

 References from Books

PRIMARY DATA  References from journal,
 Interview previous study, Newspaper
 References from valid
property website
 Statistic Data from
Government website

Analysing data and information

Addressing finding, conclusion and recommendation for research

VARIABLE AND MEAASUREMENT

There are two types of variables, which is dependent variables and independent variables.
Variable that entirely depend on the other variables in order to support itself is called as
dependent variables.

The dependent variable use in this research is preparation for buyer before buying house.
These dependent variable are depend on the independent variable which it may effect the
result and outcome

In other hand, the independent variable in this study are knowledge needed by buyer before
buying house.
DATA COLLECTION

Primary Data

Primary data represent ‘first-hand’ raw data structures that have not had any type of
meaningful interpretation (J. Hair, Bush, & Ortinau, 2006). Several techniques in collecting
data conducted in this research for example the interview technique. To gain information
from a respondent, a two-way conversation initiated by the interviewer which is interview or
personal interview will be used. The interviewer commonly controls the topics and patterns
of discussions. The respondents must be an real estate agent or real estate negotiator that have
licence to do property transaction, not the illegal estate agent that doing property transaction

Another way to obtain information is by interviewing the public people that have been
through buying or selling process in their life. This often be collected through various
techniques such as interviewing, observation and survey questionnaire (J. F. Hair, 2007). The
researcher can interview some of public people at places where researcher think can find
many people that come to that area.

In this study, the interview method toward the respondent is the most suitable to be used to
collect the primary data that are relevant.

Secondary Data

This type of data required very little time to obtain, easy to find and less expensive than
acquiring primary data. Many books, journals, articles, newspapers, previous study and other
type of publications that are available in the internet or hard copy are secondary data that are
giving information and able researcher to retrieved. The data that obtained from these sources
can be used as the reference for the researchers in conducting the research, where the data
that obtained are based on the previous research and findings.

For this study, most of the secondary data was obtain using internet and book. Fasilities
provided by UiTM Perak as to access library OPAC that contain a lot of e-journal and online
database. All those journal and thesis sources do help for better understanding on this study.
SAMPLING DESIGN

Sample size is the the number of respondents for this research (Malhotra, 2006). In this
research the interviewer will use saturation technique where interviewer will interview each
of respondents until the respondent don’t provide any additional info. The research will stop
interview the respondent until there are no new major factor been mention during the
interview.

Previous study said that the required number of participants should depend on when
saturation is reached. Based on Guest, Bunce, and Johnson (2006), they propose that
saturation often occurs around 12 participants in homogeneous groups

Target Population

In this research, the target population will focus on the real estate agent or real estate
negotiator that base on Cheras, Selangor. The reason choose of the respondents is because
they are really know what are the knowledge needed by the buyer before buying house
because they work as agent that handle many cases for property transaction

Sampling Frame and sampling location

In this study the sample frame will be the real estate agent or real estate negotiator where
basically they have experience in conducting property transaction with their buyer. For the
sampling location, this study will be conduct at Cheras, Selangor

Instrument Design

The questions will be design based on the literature review that conduct by the researcher.
The question developed needs to fulfil the objectives of the research where to identify the
knowledge needed by buyer before buying house and the most important knowledge needed
before buying house. The question will be used as the guidance for the researcher during
interview process. For every questions, the researcher will ask the reason for the answer in
order to understand the answers of the respondents.
Pilot Study

To make data obtained more comprehensive and accurate before the real interview can be
conduct, pilot study will be conducted in order to know the correct question will be given to
the respondents. Before the researcher carry out the interview session for the main study, the
researcher have to do pretesting of the question toward small group of people which
researcher find that he has more knowledge toward the issues in order to know the accuracy
of the question that will be given to respondent

The purpose of adopting the method of pilot study is enables the researcher to make
corrective action and improvement on the questionnaire. By doing this pilot study, researcher
may add some new elements in questionnaire and deleted any unnecessary elements based on
the feedback from the pilot study conducted.

The pilot study in this research was conducted in the same area of research which is in Cheras.
The pilot study was conducted based on the question addressed to the every prospective
respondent which are real estate agent or real estate negotiator that base in Cheras..
Furthermore, the researcher can interpret the results from the pilot study conducted and
transform it into better questions and interview for the next process.

DATA ANALYSIS

The researcher will conduct the data analysis to gain result after the collection of data through
the previous interview with the respondents

Content Analysis

The data will be analysed by the researcher using content analysis. Content analysis is a
technique providing numerical description through written, visual communication or face to
face interviews. Content analysis were used by the researcher to analyse the record from the
interviews, and to classify open-ended responses towards survey questions

Ranking Analysis

The rank of the variables will be arranged from highest response to the lowest response and
the responses of the respondent will be analysed. This will be arrange by the researcher on
which will be the most important knowledge need consider by respondents
Interview Question:

DEPARTMENT OF ESTATE MANAGEMENT

FACULTY OF ARCHITECTURE, PLANNING AND SURVEY
UNIVERSITY TECHNOLOGY MARA PERAK.

AGE :
GENDER : MALE / FEMALE
STARTED AS PROPOERTY AGENT : _______ YEARS AGO

1. Do you agree, home buyer must have an adequate knowledge before they get in to
transaction? Why?

2. Can you briefly explain the preparation need prepare by buyer before buying house?

_____________________________________________________________________

3. What are the most obstacles face by the buyer in buying house?

4. What are the impact for the buyer if they are not prepare themselves with an adequate
knowledge?
 PHYSICAL CHARACTERISTIC

5. Do you agree that physical characteristic of a property must be consider before doing
decision in buying a house? Why?

_____________________________________________________________________

i) Considering relate to condition of the house?

ii) Considering relate to the number of room in the particular house?

_____________________________________________________________________

iii) Considering relate to the size of the particular house?

_____________________________________________________________________

6. What are the other factors to be consider in term of physical characteristic that must
be consider by buyer before buying house? Why?

_____________________________________________________________________
 LOCATION

7. Do you agree that location of a property must be consider before doing decision in
buying a house? Why

i) Considering relate to surrounding neighbourhood?

_____________________________________________________________________

ii) Considering relate to distance to workplace?

_____________________________________________________________________

iii) Considering relate to distance to children school?

_____________________________________________________________________

iv) Considering relate to distance to public transport?

_____________________________________________________________________

v) Considering relate to distance to facilities and amenities?

_____________________________________________________________________

8. What are the other factors to be consider in term of location that must be consider by
buyer before buying house? Why?

_____________________________________________________________________
 FINANCIAL CAPABILITY

9. Do you agree that location of a property must be consider before doing decision in
buying a house? Why?

i) Considering relate to price of the house?

_______________________________________________________________
ii) Considering relate to interest rate of financial institution?

_______________________________________________________________
iii) Considering relate to Debt Service Ratio (DSR) by financial institution?

_______________________________________________________________

10. What are the other factors to be consider in term of financial capability that must be
consider by buyer before buying house? Why?

________________________________________________________________________
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