Real Estate Specifics

ACTIVITY: Property Specifics (Term Paper Part 2)

For this assignment, you will write 3 paragraphs as shown below. Simply type your information into the text box here. However, please SAVE a copy of your assignment to a Microsoft Word document or google doc. You will need a copy of it later for your final paper, “Appraisal Report of Single Family House”. You will also research market demographics and collect data on “comps”.

Research

Before you begin the appraisal, you will need to do conduct research to find a subject property you can use for this assignment, as well as your final paper. It MUST be a freestanding single-family house. It cannot be a condo, PUD, duplex, or manufactured home.

• Step 1. Start by selecting the category for single family homes (residential property) on which to report. Find a property that offers complete data on www.Realtor.comLinks to an external site. or Realtor® Property Resource (RPR) www.narrpr.comLinks to an external site. (if you’re a Realtor® member), or your local MLS (if you’re a member). It can be ANYWHERE in the U.S. (does not need to be in the high desert). Do not select a house in a rural area as it will be difficult to locate comps nearby. You may select your own house, BUT remember it can be difficult to distance yourself emotionally from your family’s home. DOWNLOAD ALL THE DETAILS AND SAVE TO YOUR COMPUTER in case the listing disappears from the website later.
• Step 2. The listing data must include: street address, list price, square feet of house, number of bedrooms, number of bathrooms, lot size, year built, and tax ID number. Also, it must list any amenities such as a swimming pool, and the HOA/community name (if any). Download a property photo and save to your computer as well. Download and study the data. If you selected a listing that does not have this information available, go back and choose a different property. If you have a REALTOR® friend or family member who can assist you with researching the data, that is fine. Also, you will need to look at a map and outline the streets that border the subject property’s neighborhood.
• Step 3. Research 5 similar houses (comps) in the same neighborhood that have sold recently. They should have approximately the same number of bedrooms, bathrooms, square feet, and building age (year built). You won’t find an exact matches — which is fine — but pull those properties that are most similar. Save this data as you will need 3 of these comps for the appraisal form in Part 3. If you cannot find “sold” comps, you can use actively listed comps instead.
• Step 4. Research market demographics for that city, town, or community. Specifically focus on the local housing market, family (household) income, employment, and housing affordability. Scroll down to find sources of demographics. DO NOT INCLUDE RACIAL DEMOGRAPHICS, as that should not have any influence on the property’s appraisal.

NOTE: If you have a friend who is a member of the MLS or Realtor® Association, you can ask your Realtor® friend to help you find sample properties on the MLS (optional).

Instructions & Examples

Begin with your name, date, and class number at the top of the paper. Write 2 paragraphs about your selected property and the local market demographics. Each paragraph must be 5 sentences long. Also, you will include a list of comps at the end of the 2 paragraphs. Always cite your data sources! Do not use the terms “you” and “yours” as the paper should not be written in second-person voice.

• In the first paragraph, respond to the following in complete sentences: Explain the selected property thoroughly, beginning with the property address. Identify: property type, geographic location, square feet, lot size, zoning, and list price. From a map, name the boundary streets of the subject property’s neighborhood. CITE YOUR SOURCE OF DATA by including the website info.

EXAMPLE: 123 S. River Road is located in Ventura, California. It is 1,400 square feet, 3 bedrooms/2 bathrooms, and built in 1988. It is listed for sale at $345,000 and the lot size is 4,500 square feet. It is zoned R-1 and located in a residential housing tract with other similar homes built by KB builders. Tax records show this property was updated in 1995 with a new den added to the back of the house. It was last modernized in 2001 with upgraded counters, cabinets, and appliances. The assessor tax number (APN) is 123-456-7890. The subject property’s boundaries are: Bear Valley Road to the south, Nisquali Road to the north, I-15 Freeway to the west, and 11th Street to the east. The property does not have an HOA and there are no HOA dues. Source: www.Realtor.com/123RiverRoad

• In the second paragraph, respond to the following in complete sentences: Research and share the current and future uses of the property. Mention the area demographics. List any other pertinent data about the property location, or the property itself (interior or exterior). CITE YOUR SOURCE OF DATA.

EXAMPLE: However, there are local amenities nearby: the London City Park, a community swimming pool at the YMCA, and an outdoor tennis court. The City of Ventura has a population of 123,000 that consists of 15% college students, 5% active military, 20% senior citizens over age 65, and 15% “baby boomers” who will be retiring soon. The average per capita (per person) income is $37,000 and the average household income is $67,000 with 15% working in farm industries, 20% in the service sector, 15% in government, 25% in professional businesses, 15% retired, 5% unemployed, and 5% receiving government assistance. The local Ventura airport will be expanding within the next two years, which is estimated to bring 13,000 new jobs to the area (both part-time and full-time), creating a strong demand for housing. Source: U.S. Census Bureau QuickFacts https://www.census.gov/quickfacts/fact/table/US/PS…

• Comparable properties. Lastly, submit a list of the addresses for each of the 5 comps including recent sales price (or market value). Each property must have a value or recent sales price! CITE YOUR SOURCE OF DATA.

EXAMPLE: Recently Sold Comps: (1) 456 S. River Road, Ventura CA 93456, 3 beds/2 baths, 1,200 sq. ft., built 1989 – sold for $330,000 on 2/1/2021 (2) 789 Beach Street, Ventura CA 93456, 3 beds/2 baths, 1,500 sq. ft., built 1987 – sold for $355,000 on 3/1/2021 (3) 654 N. Pacific Ave., Ventura CA 93456, 3 beds/2 baths, 1,350 sq. ft., built 1992 – sold for $327,000 on 1/31/2021 (4) 321 Beach Street, Ventura CA 93456, 3 beds/2.5 baths, 1,520 sq. ft., built 1988 – sold for $344,000 on 3/15/2021 (5) 987 S. River Road, Ventura CA 93456, 4 beds/2 baths, 1,400 sq. ft., built 1989 – sold for $352,000 on 3/30/2021 Source: www.Realtor.com/Ventura

Your Realtor.com source, and any other research sources, must be cited and referenced in APA format. If you use any sources (other than your own original work), you MUST cite them in your paragraph, and reference them at the end.

SAVE the comps you researched above in Step 3. That will be used in Part 4 of your final paper project.

Property Research Guides

Below are videos showing how to navigate the site www.Realtor.comLinks to an external site.

The first video begins at 2:19.

Example of Property File

1504 Church St, Ventura, CA 93001

https://www.realtor.com/realestateandhomes-detail/1504-Church-St_Ventura_CA_93001_M11778-00006Links to an external site.

Economics & Demographic Research

Following are some scholarly sources for demographic research. Please note that third-party consumer sites such as zillow are not scholarly and cannot be used.

What are Demographics?

• Demographics Defined: https://www.entrepreneur.com/encyclopedia/demographicsLinks to an external site.
• Examples of Demographics: https://smallbusiness.chron.com/examples-demographics-65678.htmlLinks to an external site.
• 7 Real Estate Demographic Factors That Determine a Successful Investment by CoreLogic: https://locationinc.com/blog/2017/03/07/real-estate-demographicsLinks to an external site.
• How to use demographic data to help you sell property (note: this is an Australian company, but the article facts are still relevant): https://homesales.com.au/news/latest/how-to-use-demographic-data-to-help-you-sell-propertyLinks to an external site.

Local Demographics

Apple Valley:

• https://www.applevalley.org/services/economic-development/commercial/demographicsLinks to an external site.

Hesperia:

• https://www.neighborhoodscout.com/ca/hesperiaLinks to an external site.

U.S. Census Bureau QuickFacts

• Enter the city in the top left field
• Check out these sections: Housing, Family, and Income
• https://www.census.gov/quickfacts/fact/table/US/PST045219Links to an external site.

NAR Research & Statistics

• Housing Stats:https://www.nar.realtor/research-and-statistics/housing-statisticsLinks to an external site.
• Median Home Prices Monthly Mortgage Payment by County (interactive map): https://www.nar.realtor/research-and-statistics/housing-statistics/county-median-home-prices-and-monthly-mortgage-paymentLinks to an external site.
• Median Home Prices Monthly Mortgage Payment by State (pdf document): https://cdn.nar.realtor/sites/default/files/documents/2019-q4-county-median-home-prices-monthly-mortgage-payment-by-state-and-name-03-19-2020.pdfLinks to an external site.

U.S. Bureau of Labor Statistics

• Economy at a Glance
• Scroll down to select state & metro area
• https://www.bls.gov/eagLinks to an external site.

More Appraisal-Related Sites!

• https://www.city-data.com/zips/92337.html
• Page 152 in the Huber Textbook lists 14 data research sites