Valuing residential real estate

Assignment Help Finance Basics
Reference no: EM13842505

Problem: Valuing Residential Real Estate

Sarah Fluggel is considering the purchase of a home located at 2121 Tarter Circle in Frisco, Texas. The home has 3,000 square feet of heated and cooled living area, and the current owners are asking a price of $375,000 for it.

a. Use the information provided in the following table to determine an initial estimate of the value of the home Sarah is considering:

 

Comp #1

Comp #2

Sale Price

#240,000

$265,000

Square footage

2,240

2,145

Selling price/sq. ft.

$107.14

$123.54

Time on the market

61 days

32 days

b. After making her initial estimate of the value of the home, Sarah decided to investigate whether the owner's asking price of $375,000 might be justified based on unique attributes of the home. What types of details might you recommend Sarah look for in trying to justify the price of the home?

c. What if the house Sarah is considering had an asking price of $315,000? What would you recommend Sarah do then?

Reference no: EM13842505

Questions Cloud

Particular feature is value added or non-value added : We all use smartphones but the point to think about is that from a customer perspective do you think that all the features provided are “value added” and which are not. In a smartphone of your choice (Pick either Android or iPhone), state the feature..
About whether complexity is waste or not : Share your thoughts about whether “complexity” is a waste or not? Explain your logic for your answer. Also explain how can you deal with complexity within and outside your organization and what would be the outcome of dealing with it the way you are ..
Explain performance and categorize test subjects : Modern psychological testing relies heavily on norming. Even domain-referenced tests provide statistical norms to explain performance and categorize test subjects
What are major geographic features of indian subcontinent : What are the major geographic features of the Indian subcontinent?
Valuing residential real estate : Sarah Fluggel is considering the purchase of a home located at 2121 Tarter Circle in Frisco, Texas. The home has 3,000 square feet of heated and cooled living area, and the current owners are asking a price of $375,000 for it.
Discuss an experience of dynamic complexity : Discuss an experience of dynamic complexity that you've experienced at work. Describe the situation and the solution that was implemented. Discuss the interrelationships between the major parts of this system. Describe the unintended consequences pro..
Complete the operational and departmental goals : Develop individual goals, KPIs and tasks for your worker and document these in the worker's performance management plan - Complete the operational and departmental goals of the operational plan.
Why is it important for firms to have a logistics strategy : Why is it important for firms to have a logistics strategy? What could happen if a firm did not logically link it's logistics decisions to the needs of the customers?
Anticipated value of customers associated with performance : Refers to the notion of who becomes a leader rather than how well people do in a leadership role. The anticipated value of the customers associated with performance is known as.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Assume that you observe the investment performance of 200

suppose you observe the investment performance of 200 fund managers and rank them by investment returns during the

  A financial consultant to defense electronics

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant over..

  Economic relationships among account balances

1. What analysis best considers the economic relationships among account balances?

  The firm is considering adding a mid-class spa and expects

cool comfort currently sells 300 class a spas 450 class c spas and 200 deluxe model spas each year. the firm is

  What was the arithmetic average annual return

Consider the following information on large-company stocks for a period of years.

  Why might prices not be strong form effcient

Why might prices not be strong form effcient? List two reasons and briefly describe.

  Construct the current balance sheet reflecting the changes

The company generated $9 million in net income and paid $2 million in dividends. Construct the current balance sheet reflecting the changes that occurred at Information Control Corp. during the year.

  Calculate average beta of the new stocks

A mutual fund manager has a 20 million dollar portfolio with a beta of 1.50. The risk-free rate is 4.50 percent, and the market risk premium is 5.50%. The manager expects to receive an additional $5 million which she plans to invest in a number of st..

  Arnold tofu owns and operates a chain of 12 vegetable

arnold tofu owns and operates a chain of 12 vegetable protein hamburger restaurants in northern louisiana. sales

  Estimate the average annual inflation rate

A new Grady White fishing boat cost $5000 in 1979. Today, the very same boat costs around $40,000. Estimate the average annual inflation rate, using the Rule of 72.

  Determine the discounted payback period

Determine the discounted payback period (in years) for a project that costs $1,000 and would yield after-tax cash flows of $525 the first year, $485 the second year, $445 the third year, and $405 for the fourth year. The firm's cost of capital is ..

  How do you define that measure

In situations where expected rate on invested differ substantially, standard deviation may not provide a good picture of one investment's stand-alone risk relative to another. In this situation what other measure of risk would you use? How do yo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd