1. You will first need to research the housing market and compare
the values of two similar homes in two different areas. The two
homes must be extremely similar in structure size, land size,
year built, and additions such as swimming pools or barns.
Then, based upon your findings, you will select one of the
homes to purchase, calculate a monthly payment on the
mortgage note, compare this information with what you can
potentially afford, and address additional questions related to
home ownership.
House #1
House #2
1. Go to the following website: http://www.realtor.com/.
2. Enter a ZIP code.
3. Chose Homes for Sale.
4. Enter your price range (the minimum and maximum amount
you want to spend).
5. Enter the specifications (number of bedrooms and number of
baths).
6. Hit Search.
7. Find a home that you like or would consider.
8. Go to the U.S. Census website: http://www.census.gov.
9. Click on the American Factfinder tab on the left of the
screen.
10. Under the Fact Access to Information title, enter the ZIP
code of the house you found.
11. You will get lots of data on demographics like age, gender,
family size, education, income, and crime rates.
12. Find out the price per square foot for the house you found.
The goal now is to find a very similar house (age, lot size,
square footage, number of rooms, and number of bathrooms).
Repeat Steps 1 through 12.
In Step 2, pick another ZIP code 20+ miles away from the first
ZIP code you picked for the first house.

2. In Step 5, pick the same specification and choose a house that
was built in the same year or so as the first house. Also, try
your best to find a house that has the same lot size and square
footage as the first house.
Construct a table showing a comparison of data (including
location, square footage, total price, price per square foot, and
specifications), for both houses and then write a 3–4-page paper
detailing the following:
1. What is the logic for choosing your two ZIP codes? Is the
selection based upon work location, family location, good
schools, and so on?
2. What is the logic behind choosing the size and specifications
of each house?
3. Compare the total price of the two homes.
4. Compare the price per square foot for each house.
5. Compare the demographic data (referring to the location and
ZIP code) of each house. Based upon these data, try to explain
the similarities and differences in pricing for each home.
6. Select the home that you will purchase and explain the
reasoning behind your selection. Assume that at least a 20%
down payment is required. How much money would you need to
have saved? After the down payment, what would be the
purchase price of the home?
7. Assume the following:
· Closing costs (including all potential loan origination, title,
and closing fees) are $3,500.
· You have been approved for a 30-year fixed-rate mortgage
note at a rate of 5.0%. Calculate the monthly payment for this
loan. (It is recommended that you show your calculation.)
8. Using your textbook readings this week as a resource, and
based upon your monthly gross income and current additional
debt payments, perform the calculations below (it is
recommended that you show your calculations).
· Your affordable monthly mortgage payment (assume your
lender uses a guideline of 33% for monthly gross income or

3. 38% if you have other debt payment obligations)
· Your affordable mortgage amount (meaning the amount that
can be financed; assume the loan terms under #7b)
· Your affordable home purchase price (assume a 20% down
payment). Compare these calculations to the previous data
under #6 and #7. What are your conclusions? Discuss your
findings, including any surprises!
When purchasing a home, what additional considerations must
you take into account? Discuss the parties that will be involved,
what type of documentation will be required, home inspection
requirements, any additional financing options that you would
evaluate, and so on
Present a general summary regarding home ownership. What are
the advantages and disadvantages of home ownership, and how
does your personal choice fit into your overall personal
financial plan?
Running head: Real Estate
1
BUSINESS PROJECT
2
Part I
A. My business to establish real estate is a business that
involves itself with buying and selling of property; such as land
and the buildings on the land. The buying and selling also
covers all the natural resources like: minerals, water
catchments, and any permanent property on the land. This
business also includes renting land, buildings or housing.
B. Our mission is to make the buying and selling of property as
cost effective as possible to all clients while maintaining high
level of services, with providing accurate and updated
information. We will achieve this by offering real estate advice

4. to our clients, continually exploring new ideas, as well as
current technology in this field to make the process of selling
and buying of property faster, cost efficient, and easy. We are
very much dedicated to giving quality to all of our clientele.
One of our main goals is to be a home provider to all. We do
understand well that our customers do weigh the standard of our
service, and therefore we must earn their loyalty. We do all we
can to develop our employees professionally as well as
personally. With supported team employees, our business will
prosper and rise to higher levels. We work on the principle that
by encouraging personal and professional development, our
esteemed employees will want to gain more from the company
and hence they will work harder. To our clients and partners our
aim is to maximize our property value. We are very flexible to
individual investors, the available markets, and residents
through our leadership; we are committed to our service. Our
vision is to be the best firm that prepares clients to willingly
and successfully sell and buy real estate properties in the
current and future real estate market.
C. Keeping time and walking the seller and the buyer though the
process of selling, our agent are very keen and they make sure
they have the basic knowledge and the required documents in
the transaction. This ensures that whenever a transaction starts
it cannot be terminated before its completion; they are very
keen on details that can bring troubles. They ensure that the
parties involved both play their roles; the buyer has the money
and they are really interested in buying, the seller has original
title deed and any other relevant document.
Proper record keeping real estate agents are the best, they are
licensed and they have a mandate of keeping full files on all the
transactions conducted over a long period of time. The files are
arranged systematically in such a way they can easily be
retrieved when needed. They make sure that all the parties
involved have copies of the transaction documents. In case of

5. misplacement of these documents you can count on them. The
agents also can answer any questions you may have about the
property.
Conducive negotiations environment, mostly there might be a
disagreement between the seller and the buyer because of some
condition of the house. A real estate agent acts as an
intermediary and does the negations. The agents have
experience on how to handle and overcome such issues as those
of poor conditions in the houses. They convince the buyer and
promise to repair the house or make the price subsidized.
Dealing with paperwork, the whole process involves a lot of
papers and it can be costly because it must be as formal as and
clear as possible. If you do it by yourself it means you need to
have a dedicated are to keep the documents that were involved
in the whole process. These documents include what was
included in the agreement and what was not part of the
agreement. Paper work can be tiresome and tedious.
It is difficult to find a seller or buyer for your property but our
agents can, because they are specialists. The agent gets the
information about the available house and they pass the
information to a buyer.
Requesting repair of a property: the property in question might
not be in good conditions]. The agent relieves the buyer the
burden of asking for repair. Our real estate agent is able to mark
out trouble that you may not see, as well as recommend a good
home inspector who will provide a detailed report on problems
with the house. This problem might be serious but you as a
person might not be able to identify them. The agent will know
what is reasonable to request and what's excessive on the seller.
D. Pricing a property, we have experienced real estate agents
can set a price on a property the moment they view it. They are

6. able to tell when a house is sold more expensive than required
or when it is underpriced. Our agents can provide all the
information on local property sales that you want to see and
also bring assets to the deal that come from years of watching
waves of transactions in the neighborhood.
Getting information about the customer: For best results, a
seller will want to know the background information of the
buyer; a seller’s agent can usually be even more valuable. Most
agents are familiar with their local area and can direct you
accordingly to the best for safety.
Education and training, hence no loss of customer resources;
our agents have the proper knowledge of the specific real estate
laws and procedures in the area that they are working in. Our
estate agents are members of the National Association of
Realtors (NAR); members of the group agree to abide by a code
of ethics. One of the codes states that all realtors deal with all
parties of a transaction honestly; under the code, the realtor is
obligated to put the clients' interests ahead of his own. They are
also required to make full disclosure about the problems with a
property and be truthful in advertising. This makes them to be
fear to both the buyer and the seller.
E. Our business will be an online as well as on ground business.
We want to reach many customers and that can only be done
through online marketing. We will also make it easy for our
customer to buy and sell online through our website.
F.531210
About the business
“Properties Asap” is an exciting new company that meets the
insatiate need of acquiring properties like land and buildings in
different locations worldwide. As discussed before, the business
will be a combination of both online and brick and motor

7. headquartered at USA, New York. Given the competitiveness in
this industry in USA, the company will exploit various
weaknesses of the existing competitors in the industry to win a
good proportion of the regions market. On the global
consideration, facilitating real estate business appears to be one
best profitable option available. Malloy & Smith (2010)
observes that there is an alarming increase in population which
has contributed to the growing demand of properties mostly of
capital nature like land and buildings. There are several
companies which have ventured in this business and therefore,
this business can be considered highly competitive. Most if the
competitors are giant investors and for this company to give
them a run for their money, it will need to build a reputation
founded on providing practical solutions and appropriate
expectations. Some of these competitors are The Madison Real
Estate Group located in Los Angeles, Realtor Real Estate at
Westlake Village and County South Cane Bay Realty
headquartered at South Pointe Blvd , Summerville just to
mention a few (Thomsett & Thomsett (1998). Operating in such
environment, “Properties Asap” can only survive in the industry
by considering other factors as strengths other than financial
base like ensuring there is effective promotion, cheaper prices,
diversified products, professional support, and quality products
Market Growth
The market growth in the foreseeable future is subject to the
economic conditions which will affect how easy or difficult for
“Properties Asap” will be successful at any time. These
economic factors will specifically affect the cost of putting up
the business. The economic condition affects the employment of
the residents. In unfavorable economic condition, the level of
employment will be low. This means a high level of
unemployment will be experienced and the household income
will evidently be low. Therefore, the residents will be forced to
spend only in basic and this means there will be no market for

8. expensive properties like land. The country’s population has
embraced technology in almost all spheres of life. Computer
knowledge and skills have become common. Many people have
internet knowledge and frequently use it for placing orders,
searching for solutions to everyday life challenges, and social
networking. “Properties Asap” hopes to tap internet awareness
in the country to market its services and sell to customers. The
most compelling trend in USA, which “Properties Asap” hopes
to capitalize on greatly, is working culture. According to
Malloy & Smith (2010), citizens have less time for leisure as
they work longer hours. Nonetheless, the demand for recreation
is still high pushing many people to acquire properties at
different locations
Market Segment
With the recent growth of online shopping, consumers today
want to use their time as efficiently as possible. Service
organizations in this industry have been growing rapidly and
achieving great success due to the ever-increasing demand for
hustle-free shopping. The industry as a whole allows customers
to access information about properties conveniently at the click
of a button at a relatively cheaper price. Been partly web based
organization, it will be affect by political factors also in a
number of ways. In USA, the ministers are preparing to institute
a legislation that will see the internet activity of every citizen is
monitored upon demand. This infringes the privacy of the
citizens and they might as well choose to ignore online
shopping due to privacy reasons. This will have a direct impact
on web based organizations as it is likely to lower the demand.
Still on the political factors, the US government intends to come
up with a cyber-information sharing partnership with web based
organization. This partnership will play a significant role in
reducing cyber-attacks therefore supporting the growth of web
based organizations. Still on the same, the government intends
to set aside some funds to help the web based organizations
which have suffered from cyber-attacks.
Competition

9. The organization will establish success factors which will see it
through the tough competitive forces. According to, Gitman et
al (2000) critical success factor is the term used to describe an
element that is essential for a business to attain its mission. It is
a vital factor needed to ensure the success of a business.
Therefore, they represent the managerial aspects which priority
to facilitate superior performance. To begin with, it is
significant to note that that most of the success factors are
dependent on each other and it is practically impossible to find
a business where most of these factors are not integrative. For
example, to meet the dynamic customer needs, this business will
require being creative and innovative to come up with attractive
and effectual service plan to serve more customers. To achieve
this, the business requires a committed workforce to facilitate
the mission and commitment at a fair price. All these factors
integrated, the business will be in a position to attain financial
performance.
Critical success factors
· Skilled Consultants-This new company must have experienced
bench to offer consultancy services to its customers.
· Broad Portfolio-It should have a broad portfolio of products
and services
· Dedicated practices- it should have practices committed to
providing customers with best services. It will be a waste of
time, energy and resources for Solar Energy World to compete
in Vancouver market without a dedicated spirit.
· Actively marketing its sustainability track record- this is to
win the trust of the customers hence earning the company
competitive advantage over its competitors.
To achieve financial performance, this business needs not only

10. a fair profit but good enough profit, relative to its initial outlay.
Gitman et al (2000) claim that one of the most important factors
concerning financial performance is the timing of cash flows.
Proper timing of the cash flows means that the revenue is
collected at an appropriate time to meet the financial
obligations of the business. Poor timing can put an otherwise
performing business in an extremely precarious situation
(Gitman et al, 2000). Secondly, the business should meet and
exceed the needs of its customers. A successful business is not
the one that waits its customers to complain so that it realizes
the changes in their needs. This situation describes a reactive
business and such a situation exposes the business to the risk of
losing its customers. Therefore, “Properties Asap” must be
sensitive to its customers need and also anticipate dynamism in
those needs. Thirdly, “Properties Asap” must provide value to
their customers. This implies that it must persistently struggle
to improve the quality of its services and do so at a fair cost.
“Properties Asap” will be engaged in making choices of target
markets through market segmentation and market analysis as
well as analyzing scientifically the consumer behavior. By
adopting various concepts the company will choose a good
marketing strategy that ensures successful marketing
management which shapes the market offerings, create a long-
term growth and deliver a communication value. Online sales
will be boosted by advertising and telemarketing. In addition to
that, “Properties Asap” will also use personal selling which
employs the personal efforts of a salesperson to find and
develop good business relationship with a particular customer.
The method aims at getting to know the customer well, evaluate
their needs, tastes and preferences and then customize the sales
process so as to accommodate the specific needs of the customer
identified. The face-to-face interaction with the customer helps
to build trust, which is essential to boost sales (McDonald &
Keegan). The “Properties Asap” sales force should be trained to
acquire the skills needed to sharpen their interaction skills to

11. boost sales. These skills aimed at promoting sales through their
face-to -face interaction and also through other electronic media
promotional mix.