Market Potential Study Planfor a Real Estate Sales Branch Office in the Southmost Area of Brownsville, Texas

C. Frank Wood

Problem Statement:

• Is there a market in the Southmost area to sustain a real estate sales branch office?

The Research Question:

• Are there enough people in the Southmost area willing to take advantage of real estate services?

Survey Size, Style, and Response:• Necessary calculated sample size:

52

• Style: Door-to-door, personal survey

• Actual completed surveys:54

Determination of Sample Size:

• Based on a break-even analysis for a real estate service branch office of one salesman, only 5% of the Southmost area needs to utilize the office’s services

• p = .05 • Z = 1.645 (level of significance = .05), E =

.05• n = 51.41

1. How long have you lived in your home?

11 20.4 20.4 20.4

12 22.2 22.2 42.6

10 18.5 18.5 61.1

8 14.8 14.8 75.9

13 24.1 24.1 100.0

54 100.0 100.0

54 100.0

1 TO 5YEARS

6 TO 10YEARS

11 TO 15YEARS

16 TO 20YEARS

20 +YEARS

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

YEARS IN HOME

1. How long have you lived in your home?

YEARS IN HOME

20 + YEARS16 TO 20 YEARS

11 TO 15 YEARS6 TO 10 YEARS

1 TO 5 YEARS

Coun

t

14

13

12

11

10

9

8

7

2. How many homes have you lived in since moving to the area?

4 7.4 7.4 7.4

9 16.7 16.7 24.1

10 18.5 18.5 42.6

10 18.5 18.5 61.1

6 11.1 11.1 72.2

3 5.6 5.6 77.8

6 11.1 11.1 88.9

4 7.4 7.4 96.3

1 1.9 1.9 98.1

1 1.9 1.9 100.0

54 100.0 100.0

54 100.0

1

2

3

4

5

6

7

8

9

10

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

NUMBER OF HOMES LIVED IN

2. How many homes have you lived in since moving to the area?

NUMBER OF HOMES LIVED IN

10987654321

Cou

nt

12

10

8

6

4

2

0

3. Did you locate your home on your own, or did you use a real estate service firm?

41 75.9 75.9 75.9

13 24.1 24.1 100.0

54 100.0 100.0

54 100.0

ON OWN

REALESTATEFIRM

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

HOW HOME WAS LOCATED

3. Did you locate your home on your own, or did you use a real estate service firm?

HOW HOME WAS LOCATED

REAL ESTATE FIRMON OWN

Cou

nt

50

40

30

20

10

0

4. Do you rent or own the house you are living in?

17 31.5 31.5 31.5

37 68.5 68.5 100.0

54 100.0 100.0

54 100.0

RENT

OWN

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

RENT OR OWN

4. Do you rent or own the house you are living in?

RENT OR OWN

OWNRENT

Cou

nt

40

30

20

10

5. Would you consider using a real estate service firm in the sale of your home?

17 31.5 31.5 31.5

21 38.9 38.9 70.4

16 29.6 29.6 100.0

54 100.0 100.0

54 100.0

N/A

YES

NO

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

R. E. FIRM TO SELL HOME

5. Would you consider using a real estate service firm in the sale of your home?

R. E. FIRM TO SELL HOME

NOYESN/A

Cou

nt

22

21

20

19

18

17

16

15

6. Would you consider using a real estate service firm in the search for another home?

33 61.1 61.1 61.1

21 38.9 38.9 100.0

54 100.0 100.0

54 100.0

YES

NO

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

R. E. FIRM TO BUY

6. Would you consider using a real estate service firm in the search for another home?

R. E. FIRM TO BUY

NOYES

Cou

nt

34

32

30

28

26

24

22

20

18

7. Are you planning on moving in the next...

8 14.8 14.8 14.8

8 14.8 14.8 29.6

6 11.1 11.1 40.7

32 59.3 59.3 100.0

54 100.0 100.0

54 100.0

NEXT 1TO 6MONTHS

NEXT 7TO 12MONTHS

NEXT 13TO 24MONTHS

NOTKNOWN

Total

Valid

Total

Frequency PercentValid

PercentCumulative

Percent

PLANS TO MOVE

7. Are you planning on moving in the next...

PLANS TO MOVE

NOT KNOWNNEXT 13 TO 24 MONTHS

NEXT 7 TO 12 MONTHSNEXT 1 TO 6 MONTHS

Cou

nt

40

30

20

10

0

Results Needed for Further Research:• at least 5% of all

home owners must be willing to take advantage of a real estate service firm when they sell their home

• at least 5% of all respondents, owners and renters, must be willing to take advantage of a real estate service firm in the search for a new home

Survey Results:

• 38.9% of all owners responded that they are willing to take advantage of a real estate service firm when they sell their home

• 61.1% of all respondents, owners and renters, stated that they are willing to take advantage of a real estate service firm when they search for a new home

Test of Hypothesis for Selling:

• Ho: p < .05

• Ha: p > .05

• Level of Significance = .05

• n = 54

• pbar = .389

• p = .05

• Zcrit = 1.645

Test of Hypothesis for Selling:

• Zobs = 11.43

11.43 > 1.645Reject the null

hypothesis

Test of Hypothesis for Buying:

• Ho: p < .05

• Ha: p > .05

• Level of Significance = .05

• n = 54

• pbar = .611

• p = .05

• Zcrit = 1.645

Test of Hypothesis for Buying:

• Zobs = 18.92

18.92 > 1.645Reject the null

hypothesis

Interpretation of Results:

• The success of a real estate sales branch office is probable

• Test of hypotheses prove that there is need for further research