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Real Estate Valuation

Are home on the north side of Tamarisk Drive worth more than the homes on the ... Now examine the trend in home values between Walker and Harvey as you ...

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Real Estate Valuation

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    Real Estate Valuation 1 Variation within Neighborhoods In the address box, type “12505 Arrowhead Terrace” In the zip box, type “73120”, and click “GO” Check to see that you are zoomed into the second-closest level and that you have satellite view turned on. You should see the values of approximately 50 homes in the surrounding neighbor hood. Why do you think homes like 12505 Arrowhead Terrace and the homes adjacent to it are worth more than the homes on the other side of the street? Explain your answer. Golf Course, it’s more aesthetically pleasing to back up to a course than another home; golfers can walk out their door and play; etc. Click on the street view. Are home on the north side of Tamarisk Drive worth more than the homes on the south side of the street? Same Reasons Now we will move a little bit to the east. Type in “3625 Chestnut Ridge Rd” in the address box. In the zip box, type “73120”. Be sure you are in satellite view. Notice how the houses at the far west end of this street and the next one south (Meadow Lark Ln.) have lower values than most of the homes on the rest of these streets. Why do you think this is the case? Explain your answer. These homes are adjacent to a major highway (with its noise and pollution). Heading south now, type in “10201 Eastlake Dr.” in the address box, and “73162” in the zip box. Compare the values of the houses on the west side of Eastlake Dr. to the houses on the east side of Eastlake Dr. What could be responsible for such a dramatic difference in home values? The lake. Waterfront property is more desirable. Now type in “326 NW 22nd St” in the address box, and “73103” in the zip box. Switch to street view, and zoom-in to as closely as you can. Drag your map so that the left edge of your screen shows Walker Av. and the right side of your screen shows Harvey Av. Now examine the trend in home values between Walker and Harvey as you move south from 22nd St. to 17th St. What is the trend in home values and how do you explain it (you will need to click on several individual homes to get the details of those homes). The homes become progressively more expensive as you move south. Homes go from 2 bedroom, 2 bath to 4 and 5 bedroom and 4 and five bath homes. Square footage progressively goes up. Real Estate Valuation 2 Home Comparison In the address box, type “417 NW 34th St. and type “73118” in the zip box. Fill in the following data about this home: (You will need to click the address link) Value Range: Will vary ($170,745 - $253,105) Zestimate: Will vary $200,877 Bedrooms: 3 Bathrooms: 1 Square feet: 1,602 Lot size: 7,280 Year Built: 1922 Home $/square foot: $125 In the address box, type “1236 NE 37th St. and type “73111” in the zip box. Fill in the following data about this home: Value Range: $49,938 - $74,025 Zestimate: Will vary $58,750 Bedrooms: 3 Bathrooms: 1 Square feet: 1,811 Lot size: 8,260 Year Built: 1950 Home $/square foot: $32 These homes are only about three miles apart from one another. How can two homes that are relatively similar have such different value ranges? Name at least three factors that could be causes for difference in value. (Good answers to this question are not necessarily evident on this webpage. Think about the “big picture”. Why, in general, would it cost more to live in one part of town instead of another?) Many acceptable answers here 1. Local crime rates 2. Historical significance of the neighborhood 3. Access to amenities (shopping, parks, etc.) and major transportation routes What’s the Best Investment? Return to the Zillow homepage. Click on the “Famous Home” link under the “Bird’s Eye View” images. Click the link for the “Brady Bunch House”. After taking a look at the Bird’s Eye View, click the link that is the address of the home. On the “Value Change” graph, click “5yr” to see a graph of the percent change of market value over the last five years. Scroll down to the “Historical Value Trends” table. Real Estate Valuation 3 What’s the Best Investment? continued Fill in the following chart for the historical value trends: (Be sure to include the up or down arrows) Numbers will vary over time Now go through the same process to find information on the “Osbourne’s MTV House”. Imagine you are a real estate investor. Which home would have been a better investment if you had bought it… answers will vary over time 30 days ago? Brady 1 year ago? Brady 5 years ago? Brady 10 years ago? Osbourne Over the last 10 years has the Osbourne house fared better or worse in value than the average Los Angeles home? Better Over the last 1 year has the Brady Bunch house fared better or worse in value than the average California home? Better Which home do you think is the better investment today? Explain your answer. The Brady house and its surrounding zip code have exhibited continuous, steady growth over the past five years.
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