There is plenty of software to estimate the current value of real estate property, but there is almost none for future projections. I had realized this was a gap in the market when a friend told me that he had recently bought a new house. The process, however, was incredibly intensive because he had looked through many communities to find the one that best suited him and his family, regarding the crime rates, average income, and schools in the area. But in the end, it was worth it. His house, at the present moment, increased $15,000 in value since he bought it earlier this year.
Most typical homeowners wouldn’t usually buy any software to do this research, nor would they invest as much time into this, so I looked for another group that could
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The Zestimates (future home valuations on Zillow) for houses are horribly inaccurate, and realtors have a hard time convincing people not to believe those highly optimistic estimations. They need something with cold, hard definite proof of how much the house will be valued at, and the data to back that up.
This projection method is based off an algorithm that crawls websites to find up-to-date public records in communities and tracks 7 key metrics: Demographics, Schools, Employment, Local Businesses (and land acquisition), Income, Previous Valuations, and Crime Rates. The algorithm would then produce a projection of what the land would be valued at in 5, 10, or 15 years. As for where the algorithm would search for information, it would scrape it from sites like the Houston Planning and Development Department for business land acquisition, CityData for crime rates, HAR for previous valuations,
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My total addressable market are the 86,000 firms across the nation. My serviceable addressable market are the 15,000 firms in Texas. My total market are the 2000 firms in Houston. I want to start in Houston because the city digitizes its’ data, thereby making it easy to scrape information for the algorithm.
There are no direct competitors in this market. There are many “FV of real estate calculators”, but they only use 1 or 2 metrics and are generally unreliable. As mentioned above, Zillow does have a future valuation calculator, but its estimates are varies widely with the other calculators and looked down upon by the professionals of the industry.
Assuming we attain success with the real estate investment firms across the nation, we would then reach out to realtors so that they would have this information when selling property to clients. Lastly, the homeowners themselves. This last market would have a “dumbed-down” software that wouldn’t contain the technical info that would come with the previous 2
Richard Romano is one of the three principals at Cruickshank, Gath, & Romano. With eight years of experience and recognized by industry insiders as one of Canada's leading real estate experts, Richard wants to complete the appraisal according to his best estimate of the pro...
The next portion of the chapter talks about how real-estate agents use information to gain power and wealth. Most real-estate agents have a better sense of knowing the condition that a home or apartment is in, and this gives them an upper-hand against the buyer or seller. Like the Ku Klux Klan, real-estate agents use secret words and information to
The chart above paints a solid picture of the five-number summary, mean, mode, range, and standard deviation for the 40-gulf view condominiums sampled for our analysis. When looking at our analysis of golf view condominiums we can see that a large price range exists with one unit selling for $189,000 on the low end and another selling for $935,100 on the high end with an average selling price of $606,590. Gulf view condominiums have a range of 276 days on the market with units selling in as little as 22 days and others taking as long 298 days. According to the Interquartile Range Rule for...
The housing market is very unique as unlike other goods and services, houses have permanence, it is a fixed location good causing the rules of supply and demand to be taken to new extremes. In the case of the Toronto housing market we can view in almost real time the role supply and demand play on he ever increasing house prices, additionally the fundamental economic issue of scarcity is made extremely apparent by the limited size of the city of Toronto.
Detroit Office of Foreclosure Prevention and Response, Data Driven Detroit (D3), Community Legal Resources, University of Michigan — Edward Ginsberg Center and Living Cities, eds. Detroit Residential Parcel Survey. Detroit, MI: 2009. (p. 19). Print.
Some of the realtors are pushing the home owners to sell the house; therefore,
Along with the incredible opportunities the Internet has created, this global connectivity also has exposed businesses to an excess of regional issues that can dramatically alter a business' potential for profit or loss and also change the risks and threats to the business.
"Real Estate Agents and Brokers." Encyclopedia of Careers and Vocational Guidance. 15th ed. Vol. 5. Chicago: Ferguson's, 2010. 235-44. Print. Ferguson's.
Buying or selling a house or an apartment is one of the biggest decisions of a person’s life. And when selling or establishing a price for real estate, people seek out real estate agents to do the dirty work. A real estate agent has to convince a prospective homeowner that he or she is trustworthy and knowledgeable. In many ways, the agent acts as a counselor to individuals and families about to embark on a huge commitment. Real estate agents have a thorough knowledge or real estate market in their community. They
In valuing the developable land at Canary Wharf, there are several factors to take into account. Namely, it is crucial to decide on an appropriate rate at which to discount the projected cash flows for the property. The developable properties of Canary Wharf come with considerable risk. For example, the London office market downturn, as well as significant market hits for the large financial services tenants of Canary Wharf, presents serious tenant lease up and lease covenant negotiation risks. How long will it take to attract quality tenants to the buildings, especially as financial services tenants are currently stressed? Additionally, the requirement for further planning consent on the buildings indicates that construction on three of the sites can not commence for a number of years. How can one accurately predict the market in the future? Will the London Office market significantly improve or continue to decline? What will interest rates look like? Songbird must consider the risk of valuing such sites several years into the future. Further, Songbird must consider the weighty transportation risk. If the Crossrail project does not come to fruition in a timely manner with necessary approvals, development will not proceed as planned, causing cost overruns and heavy construction delays. Assuming that Canary Wharf is able to get the necessary transportation approvals, Canary Wharf's projected cash flows should be discounted at 12.5% in order to mitigate risks to be faced. Given this discount rate, as well as considering all taxes, debt obligations, rents and rent-free periods, and all construction costs, an appropriate bid on the developable sites at Canary Wharf is ₤809,000 (the Net Present Value of the cash flows, discounted at 12.5%). Please see Exhibit 1 for a detailed pro forma of all projected cash flows.
The task of this assignment is to complete a competitive analysis of two of the largest competitors in the industry of chosen study. This researcher’s chosen field is the Car Wash industry. Unlike many industries, the Car Wash industry does not have dominant players or franchise names that rule across the country. Unlike other automobile related industries such as oil change (Rapid Oil Change), tires and batteries (Goodyear), and auto parts retailers (NAPA), where these types of name players may have thousands of locations throughout the country, there are no big name players in the Car Wash industry. Although there are companies that own and operate multiple car wash facilities, most of these multi-location owners operate multiple locations throughout a metropolitan or regional area and their overall location totals are nominal. Since there is a lack of dominant competitors to analyze, this researcher will focus on an analysis between the two main categories of car wash ownership: full service vs. unattended operations.
...onsider the market characteristics as not important. Hoel, unlike others mentions that a good location is also an important factor for success as it helps in hiring good professionals.
Most people, today, are looking forward to buying their first property. When individuals decide to buy a house those individuals would have to look at all their options and all the advantages and disadvantages that come from purchasing a house. The economy plays a huge role in the decision whether people will purchase a house, purchase a condominiums, or rent property.
Valuation of real estates or properties basically, refers to appraising a property or a real estate to form an opinion about the value of the property. This value is normally the properties’ market value. Properties are heterogeneous in nature; meaning they are not all identical or alike and thus, they have different values. However, it is possible to get a range for the values. There are some obvious factors like physical location of a property that automatically makes the market value of different properties differ. The materials used on a property and other features also contribute to making property differ in their value. Other factors such as the physical size of a property still determine a property’s market value (Histon Fine Homes, 2008
Entry into the real estate industry is almost free (Goolsbee, 2005, Online) and there are many agencies that operate within the industry. The products sold by real estate agencies are not homogenous products (Coiacetto, 2006, Online). Each product is as unique as the next, in terms of its location, features, building and financing.