www.sciedu.ca/ijba International Journal of Business Administration Vol. 2, No. 1; February 2011 Published by Sciedu Press 71 Factors Affecting the Provision of Quality Service in Real Estate Agency in Lagos Metropolis, Nigeria Funmilayo Moyinola Araloyin (Corresponding author) Department of Estate Management, Obafemi Awolowo University Ile-Ife, Osun State, Nigeria Tel: +23-480-3817-0428 E-mail: funmiolasanmi@yahoo.com OJO Olatoye Department of Estate Managemen, Obafemi Awolowo University Ile-Ife, Osun State, Nigeria Received: January 12, 2011 Accepted: February 5, 2011 doi:10.5430/ijba.v2n1p71 Abstract Real estate firms attempting to increase and retain their customers need to know the factors contributing to customers’ satisfaction and retention. This study investigate into real estate agency market with the purposes of identifying factors that affect quality in service provision and possible factors contributing to customers’ satisfaction and retention in real estate agency. This study uses survey questionnaires to obtain information from real estate consumers. This sample size consisted of two hundred and three (203) real estate consumers in Lagos metropolis. A survey of 203 real estate consumers revealed the important items that affect quality in service delivery in real estate agency in the study area. The study found that the most important thing affecting quality in real estate agent is the agent’s reputation. The study concluded that a reputable real estate agent will have more satisfied clients and attract repeat businesses. Keywords: Real estate consumers, Real estate agents, Consumers’ satisfaction, Consumers’ perception, Service quality, Lagos Metropolis 1. Introduction Real estate agency is a process that helps to build the bridge that exists between estate owners and buyers. Real estate agents are key players in the agency market. They help to market a property to the public as well as other real estate agents, as a result reducing buyers’ search costs and increasing sellers’ expectation. They provide services which are met to be solution to their clients’ problems. Johnson, et al (1988) categorized real estate agency as a service sector industry which is characterized as being prescriptively customized. That is, there is a high degree of consumer customization because the buyer is continuously involved in the production process. One study by McDaniel and Louargand (1994) suggested that all service businesses must respond to consumer expectations. However, little concern has been shown for customer satisfaction and retention issues in real estate agency. The perceptions and expectations of customers and the actual performance of the real estate agents are often at variance. According to Sridhar (2001), quality in service means meeting customers’ expectations. Customers judge quality by comparing their expectations with their perceptions of what they receive. The author noted that quality in service is a customer-oriented phenomenon, that is, it is ultimately defined by customer irrespective of organizations internal quality specifications. Therefore there is need to investigate into factors that affect quality in service in order to satisfy customers and hence retain them. It was reasoned that if real estate agents know these factors and they work towards providing them, complaints against real estate agents will be greatly reduced. It is therefore the aim of this paper to examine the factors which contribute to customer’s satisfaction and retention in real estate agency practice in Lagos Metropolis. This is achieved by investigating into the views of real estate agency consumers and bringing out the importance of the factors identified. In the process, the study attempt to discover if the factors affecting service quality from real estate agency customers’ perspective are congruous with the factors noted in real estate literature. This study will be of interest to real estate firms who provide agency services as it will highlight to them the needs and expectations of their customers in Lagos Metropolis. This study will also add to the body of knowledge in real estate agency by providing factors that will contribute to customers’ satisfaction and retention