Introduction
The real estate agents are directly involved in the buying and selling of property through the performance of the core tasks in this occupation on behalf of the clients as noted by Smits (2012). The activities include showing the property as well as negotiating their prices with the prospective buyers. More importantly, the real agent is obligated to make full disclosure of any material fact to both parties. However, the agent should not disclose the client’s confidentiality, more so in a situation where the information gives one party upper hand during the transaction process (Geltner et al., 2013). Most of the time the agent’s income is entirely commission, that is, they have to make actual sales make a living. Consequently, most put more emphasis on closing a deal to earn commission by using dubious means rather than satisfying the needs of their clients.
Thus, the real estate company has to anticipate some of the challenges that may jeopardize their reputation and come up with the right methodologies to curb the rogue agents. More particularly, conducting research to collect relevant information would aid in coming up with the right mechanisms. Therefore, the research paper will use the research question hierarchy to collect the required data. After that, analysis and recommendation will ensue.
Research question hierarchy
The question hierarchy takes six steps to cover the current problem in the multimillion-dollar real estate company in entirety. This method is quite important in ensuring investigation of all the relevant areas in solving the dilemma. Additionally, the stepwise approach enables us to diagnose the problem at each component of the company as explained by Adèr, Mellenbergh, and Bannan (2011). The procedure below shows the hierarchy question research model.
Management dilemma
The management has received an array of complaints related from the buyers related to the real estate agents. The rate of complaints has increased, and their nature seems predetermined by agents who pursue their interests rather those of the principal (Geltner et al., 2013). For instance, the buyers have filed cases stipulating that the properties purchased did not meet the standards they gave their agents. Indeed, the agents concentrated more on closing the sales to earn the commission rather than satisfying the clients’ demands.
Management question
The management sought to collect the data from both the agents and the buyers to solve the problem. This approach will present the management with alternatives that can b to reduce cases of complaints that threaten the corporate image of the company. Furthermore, the management has expanded ways to solve their dilemma by collecting both the quantitative and qualitative data. Essentially, it will give robust answers to the management question on the alternatives available to solve the problem.
Research question
The research question will target the buyers and the clients. In the case of the buyers, the questions will provide the two types of data. The questionnaire will seek to know whether the agents overprice the property by use of ratings; strongly agree, neutral, agree, disagree and strongly disagree. Further, it will seek to determine the estimated figure for the value of those properties from the complaining buyers. Other questions will cover the standards using similar rating questions. On the other hand, the research will seek to understand whether the commissions offered are fair using the Likert scale to understand the cause of the agents' behavior as postulated by Ghuman and Aswathappa (2010).
Investigative process
Consequently, the company will evaluate the available alternatives after analyzing the collected data to apply in solving the problem. For instance, it will use the estimated properties’ value to determine other valuation methodologies when selling the property. Additionally, it will investigate the best method to meet clients’ demands as well as solve the ethical and commission issues related to the agents. Finally, it will review disciplinary actions for minimization of the complaints.
Measurement question
Here, the researcher will look at the margins between the actual commission and the averages of those suggested by the agents in the research questionnaires. Secondly, it will look at the variances between the actual sales prices and the approximated values by the buyers. After that, the management will find the causes of the differences and dissatisfactions. For instance, the high competition in the real estate industry, low-quality property as well as inexperienced and unqualified agents could explain the change of behavior.
Management decision
The findings from the research led management to make three main decisions. Firstly, there will be an increase in expenditure on the advertisement and other forms of marketing to complement the efforts of the agents, which will help them increase their potential customers. Secondly, the management will be more vigilant in ensuring quality properties are constructed. Finally, it will provide the agents with facilities and training them, twice a year to build the capacity of the agents and increase their competitiveness as postulated by Chaffey and Ellis-Chadwick (2012).
Recommendations
The investigation of the entire process to understand the cause of the changed relationship between the agents and the buyers has brought out several issues that are of importance to heed in the real estate company. Firstly, the companies should come up with clear ethical and corporate values as well as the disciplinary actions in case they of violations. Moreover, it is the duty of the company to ensure agents’ welfare protection by paying fair commissions and retraining them to remain competitive in the industry. Finally, real estate companies should regularly conduct field analysis to overcome the challenges and limitations as well as build their strengths and grab the available opportunities.
References
Adèr, H. J., Mellenbergh, G. J., & Bannan, D. A. (2011). Advising on research methods: Selected Topics 2011. Huizen: Johannes van Kessel Publishing.
Chaffey, D., & Ellis-Chadwick, F. (2012). Digital Marketing: Strategy, Implementation, and practice. Harlow: Pearson Education.
Geltner, D., Miller, N., Clayton, J., & Eichholtz, P. M. A. (2013). Commercial real estate analysis and investments.
Smits, M. (2012). Everything You Need to Know (But Forget to Ask) When Buying or Selling Property. Hoboken: John Wiley & Sons.
