Real Estate Project

1. Real Estate Project AOBT Seniors End-of-Semester Project

2. House Hunters Episode

3. Project Objective • Buying a home = great future investment for financial stability or even as profitable business, • Complicated and difficult process • Decisions now affect home-buying later • Get a head start by simulating the process of buying in SD • Understand: credit, mortgage process, equity, property value, realtor’s role, and more • Dream big! • Prepare now for future home

4. Project Overview Cross-curricular simulation: Bus & Fin. Mkts, Comm., Econ 4 Weeks, End of Semester Final All major assignments count for 3 classes About one of life’s most important decisions: buying a home! hear from experts in the field such as realtors, loan officers, and real estate brokers. take a fieldtrip and experience Model Homes - several homes that are currently on the market in our local neighborhood.

5. Project Intro & Scenario • Students become “real-estate agents” who are finding single-family residence for family in San Diego. • Work in pairs • Assigned “homebuyer clients”(business volunteers) • Mission: find client’s dream home in San Diego home, following real home-buying process • Meet with and email “clients periodically to find the best home possible, research the surrounding area, and finance the home given the variables.

6. The Basic Home Buying Process

7. Project Calendar • Dec. 10 – Jan. 25 • All deadlines “code red” (must turn in work on due date, no exceptions, or receive a 0. ) • All major assessments will count as points for all three AOBT senior classes • Attendance for project is mandatory and worth participation points

8. Client Consultations • 1st Consultation: Client Introductions - Tues. Dec. 11, 12:12 - 1:15 pm First face-to-face meeting at CHS. Realtors (students) will meet clients (business volunteers) to obtain: contact info, personal & financial info & home preferences. • 2nd Consultation: LoanPre-Qualification - Mon. Dec. 17 E-mail clients a Pre-Qualification Home Loan Approval Letter, indicating max price they can spend on home. Clients reply & confirm how much they are willing to spend. • 3rd Consultation: 10 Potential Properties - Thur. Dec. 20 E-mail clients spreadsheet analysis of options to consider. Clients will pick top five properties form this list. • 4th Consultation: Top 5 Property Choices – Mon. Jan. 7 Check in with clients via e-mail: pinpoint top five property choices from original ten • 5th Consultation: Virtual Home Tour - Fri. Jan. 11 Face-to-face meeting at CHS. Student give clients a prepared Virtual Home Tour (online) of top five home options. • Final Consultation: Making the Offer/ Final Presentations - Thur., Jan. 24, 12:00 - 2:15 pm Formal presentation in CHS Library. Present to clients (Prezi) about process: home search, loan approval, budget, and final home selection. Discuss home & surrounding neighborhood; recommend top three properties. Clients will watch (and assess) and decidewhichthey want to "make the offer on."

9. Graded Assessments • Dream Home Digital Collage • Client Consultation Forms • Emails • Pre-Qualification Letter & Calculations • Ten Properties Spreadsheet • Digital Home Tour • Various reflections & classwork notes • Debt/Income Ratio Excel Spreadsheet • Informational Video Seminar on a topic relating to the real estate industry • Final Presentation (Prezi + Movie) to clients • Final Midterm Test

10. Real Estate Project Rules • Students must attend every school day for the duration of the real estate project. • Partners must work on all assignmentstogether; dividing the assignments will lessen the learning experience for each participant. • During class project time on the computers or laptops, students must be working on their project at all times. Looking at other websites unrelated to the project, surfing the net, and/or playing games on the Internet will cost you participation points and may cause you to lose your privilege of using the computer that day. • Both partners must have copies and access to all electronic assignments, every day. If your partner is absent, you must still be able to do the work! If you can’t, you will lose points. See below. • All major assignment deadlines are code red, no exceptions. • All assignments must be saved in two places each time you work on them: the hard drive or login of the computer, Google Docs, flash drive and/or e-mail.

11. Real Estate Project Rules • All students will earn individual daily participation points throughout the duration of this project. These points will be given out by each teacher, 10 points per period, per day. BY the end of the project, you should have earned somewhere around a total of 200 participation points PER CLASS! These add up! Teachers will automatically take away participation points at their discretion for any of the following: • Being absent (Even if it’s excused, you will lose points that day! Come to school!) • Using computer for anything other than project-related work (no e-mail, games, surfing net) • Being too loud or disruptive during project class time • One partner not working while other one is. Be responsible for your partner, you can lose points if your partner is not on task! • Not being prepared to work because your partner “has your stuff.” • Being out of seat without teacher approval/wandering or disrupting other groups

12. Dream Home Assignment

13. Mrs. Rush’s Dream Home

14. Welcome Guest Speakers! Realtor & Clients talk about the home buying process

15. Gaby Preston Realtor, Co-Founder Schoolhouse Realty

16. New Home Wish List Finding out what your client wants….

17. Meet Gaby’s Clients DanicaHartshorn • Go to Residential Client Full • Questions for Danica: 1.Tell me about kind of home you are looking for. Who’ll live there? 2.What neighborhoods are your focus?  Why? 3. What characteristics are you looking for in a neighborhood? -personality, vibe -neighborhood amenities -commute time -other characteristics?

18. Meet Gaby’s Clients DanicaHartshorn • Go to Residential Client Full • Questions for Danica: 4. Inside the home, what features and/or floor plan elements are important to you? 5. What is your budget for a home? Down payment? How long to save & prepare to buy first home? 6. What are your expectations of a Realtor? 7. How did you decide whether to make an offer? And how did you figure out how much to offer? 8. Did you and Fletcher have any significant differences of opinion on any homes? 9. What advice would you give someone buying a home based on your experience?

19. Meet Gaby’s Clients Will Evans & Cindy Nyguen • Go to Residential Client Full • 1. As we've looked, you have moved toward larger homes What is your preferred home size now . . . bedroom/bath count? min square footage? yard size? • 2. You've also considered several locations that would be convenient to Cindy's work in La Jolla and Will's work in Carlsbad.  What location is your preference now--do you agree on that or have individual preferences? • 3. Has anything else on your wish list changed? Are there any criteria that you disagree about or that are more important to one of you? • 4. What is your price range for a home now? Your down payment? How many years of work did it take you to save up? • 5.  Since you guys have a nice condo to live in, you have not had to hurry to buy a home. Now that the market is changing and prices are gradually rising, does that affect your timeframe for buying a home?  What is your optimal timing for a home purchase now?

20. Meet Gaby’s Clients Will Evans & Cindy Nyguen • Go to Residential Client Full • 6. What are your expectations of a Realtor? • 7. How are you feeling about your experience so far, the availability of homes, prices, current market conditions? • 8. In your "mind's eye", what does your next home realistically look like?  How would you describe it? • 9. What can I do as your Realtor to help you find the right home? (any suggestions welcome.  For example, I will ask you if you are happy with the pace of showings--i.e. looking at search alerts & letting me know when you want to see things or if you prefer I look more aggressively for you) • 10. What advice would you give someone buying a home based on your experience?

21. Questions & Answer What questions do you have for Gaby and/or her clients?

22. Welcome Guest Speaker,Mr. Phil Heshmaty! Branch Manager at California Coast Credit Union

23. Due Dates • Client Consultation Form 1 Due: Tuesday, 12/6» Client Consultation 2: E-mail Loan-Pre-qualification Due: Monday, 12/12 • » Client Consultation 3: Email Home Options Sheet and conference» Real Estate Field Homework (over the break) Due: Tues. 1/3Field HW Assignment as pdf (to view or print hard copy)    or    Field HW Assignment as doc (to type in answers in MS Word)» Final Neighborhood Brochure due: Fri. 1/6 end of Period 5» Final Spreadsheet Budget due: Fri., 1/6 end of Period 6» Field trip to visit Open Model Homes in Del Sur: Tues. 1/10» First Draft MLA Research Paper & Works Cited Page due: Fri 1/13 Period 5» MovieMaker Video due: Friday 1/13 Period 6» Final MLA Research Paper & Works Cited Page due: Tues. 1/17» Presentation Rehearsals in class: Thur. 1/19» Final Presentations to Panel of Real Estate Industry Volunteers: 1/20

24. Project Givens • Assumptions: • • all students will use 28% of the clients’s income toward their loan• all students will get a mortgage at a fixed rate, 30 yr. loan • Givens: • Students will meet with their “clients” to get the following information, which was given to them for this simulation: • • annual family income• down payment• # of bedrooms and bathrooms your family desires• Minimum square footage desired• Credit score (FICO)• Area of San Diego primary earner of family works in• Car Loan Credit Card Debt

25. » Rules for the Real Estate ProjectView this online handout to see a list of guidelines regarding how students will be graded on attendance, participation, and assignments throughout the duration of the project. • » Client Consultation Form 1: Client Info & Home Wish ListStudents use this fill-in the blank form to record their given information and create a detailed identity for their fictitous “clients.” • » Credit Score Reference SheetWhen students receive their given information, they must also “roll” for their credit score. This sheet shows how their roll corresponds to a FICO score and how that score corresponds to a higher or lower potential interest rate on their client’s home loan. • » Real Estate Webpage Search QuizStudents use this introductorysearch quiz as a guide to becoming familiar with the information about the real estate project given on this webpage. • » San Diego Home Prices Internet Search ActivityStudents use this activity sheet to research home prices in San Diego and other parts of the country in order to compare and formulate an analysis. • » Webinar: “The Home Buying Process”This link is to a webinar, or educational video, on YouTube. The seminar is given by Shannon King, a realtor from SchoolHouse Realty and business partner of the AOBT. Note: Due to district restrictions, students will not be able to view this video while using a computer on campus. They will be able to view it on any online computer off campus. Staff may login and authenticate to view and show the video while on the district server. • » “Why Buy a Home” ArticlesStudents read these articles in order to complete a short essay that responds to the question “Why should one consider buying a home instead of renting one?” • » Real Estate Project Glossary of TermsStudents may view this handout to get a list of comprehensive terms and definitions that will be used throughout the real estate project.

26. Internet Research:  • Qualifying For the Mortgage: • » Loan Application • » HomeFair Mortgage Affordability Calculator • » Mortgage Affordability Calcualator Guide Sheet • Searching For Homes: • » Search Areas Reference SheetStudents should reference this sheet when choosing a community for their clients. For the purpose of the project, San Diego County was divided into five primary areas: Area 1: North County Coastal; Area 2: North County Inland; Area 3: Central Coastal; Area 4: Central Inland; Area 5: East County. Click on the link to view a list of neighborhoods for each area. • » Home Search Options SheetStudents use this form to list out five possible homes that fit their client’s requests and budget. Later, stduents will pick off this list to choose the home they feel is the best fit for their family. • » Realtor.com – San Diego • » Redfin.com • » Sign-On San Diego – Real Estate

27. Spreadsheet Budget • Assignment Description: Students will create a budget for their “clients” using a Microsoft Excel Spreadsheet.  The spreadsheet will calculate and graphically represent the family’s budget. It will use formulas to calculate the maximum home loan amount and maximum purchase price of the home. It will also demonstrate the family’s monthly expenses pertinent to buying a home  including: monthly income, monthly mortgage payment, monthly liabilities (auto & credit card debt), real estate taxes, and hazard insurance. • » Spreadsheet Budget Assignment RequirementsView this link to see a detailed page outlining the requirements of the spreadsheet family budget. • » Spreadsheet Budget Grading RubricView this link to see the grading rubric that teachers will use to asses the final spreadsheet budget. • » Sample Spreadsheet BudgetView this link to see an example of a completed spreadsheet budget.