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After a number of years of planning,

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After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based on demographics, and also to analyze a number of additional factors related to the home-buying process and ongoing possession.;Your Assignment;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.;KEY PLAYERS;Back to Top;You Decide;Scenario;Outsourcing Strategies;Your Role;What is Your Role in this scenario?;Key Players;Learn more about what the Key Players have to do with this scenario?;Assignment;What would you do to resolve this scenario?;Scenario;After a number of years of planning, you have made the decision to evaluate the potential purchase of a home. The goal of the assignment is to compare two homes based upon on demographics, and to also analyze a number of additional factors related to the home buying process and ongoing possession.;Your Role;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 like a swimming pool or a barn. 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.;Key Players;Photo of Michael Joseph;Michael Joseph;Real Estate Agent;Photo of Bethany Smith;Bethany Smith;Mortgage Lender;Photo of Timothy Baxter;Timothy Baxter;Current Homeowner/Seller;Photo of Mary Thompson;Mary Thompson;Condominium Association, President;Assignment;Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision.;If you are finished reviewing this scenario, close this window and return to this week's You Decide item, in your course window, to complete the activity for this scenario.;You can return and review this scenario again at any time.;YOU DECIDE;Activity or Assignment;Assignment;House #1 House #2;Go to the following website: http://www.realtor.com/.;Enter a ZIP code.;Chose Homes for Sale.;Enter your price range (the minimum and maximum amount you want to spend).;Enter the specifications (number of bedrooms and number of baths).;Hit Search.;Find a home that you like or would consider.;Go to the U.S. Census website: http://www.census.gov.;Click on the American Factfinder tab on the left of the screen.;Under the Fact Access to Information title, enter the ZIP code of the house you found.;You will get lots of data on demographics like age, gender, family size, education, income, and crime rates.;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.;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;What is the logic for choosing your two ZIP codes? Is the selection based upon work location, family location, good schools, and so on?;What is the logic behind choosing the size and specifications of each house?;Compare the total price of the two homes.;Compare the price per square foot for each house.;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.;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?;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.);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 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?;Grading Rubric;Category Points Description;Home Research and Comparisons 20 A comparison of the two homes identified is presented in detail through the completion of the table and a discussion (#1?5);Home Selection and Mortgage Payment Calculation 20 Home selection decision, calculation of the mortgage payment (# 6 and #7);Home Affordability 15 Calculate, discuss, and compare home affordability (#8).;Home Purchasing Considerations 15 Discuss home purchasing considerations (#9).;Home Ownership Summary 20 Present a general summary related to home ownership (#10).;Formatting and Grammar 10 Points will be deducted for poor grammar, spelling, or writing style. Any external sources must be cited. References must be cited in two places: within the body of your paper and on a separate reference list. Please follow required APA guidelines, as well as guidelines regarding plagiarism.;Total 100 A quality paper will meet or exceed all of the above requirements.;Additional Requirements;Other Requirements: please finish before deadline

 

Paper#22367 | Written in 18-Jul-2015

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