REAE 3325 Fall 2002

• Syllabus

• TVM November 1st Completions

• Course Outline

• Student Paper: Real Estate Today (due no later than the last day of class)

• Chapters 2-5 Class Notes (.pdf)

• Chapter 19 Insurance Notes (.pdf)

• Chapter 6 Contracts Notes (.pdf)

• Chapter 7 Title Examination and Closing (.pdf)

• Chapters 8 & 9 Real Estate Markets and Economics (.pdf)

• Chapters 10-12 Brokerage, Appraisal, Management (.pdf)

• Appraisal Crossword Puzzle (.pdf)

• Appraisal Crossword Puzzle Solution (.pdf)

• Other Materials for Appraisal (.pdf)

• Sales Comparison Approach Problem Solution (.pdf)

• Cost Approach Problems Solutions (.pdf)

• Sample Review Questions (.pdf)

Announcements:

• The Final Exam is on Wednesday, December 11th at 8:00 to 10:30 AM.  70 to 80 questions.  Although the emphasis is on the material covered after Quiz 3, there is a comprehensive portion (60% to 70% of the questions will be on material covered after Quiz 3).  Please bring pencils, Scan-tron answer sheet, calculator, and student ID.
• Have a good semester break and holiday!
• If anyone is interested, we are offing two upper level real estate courses (real estate finance and real estate development) this spring.  Also, Real Estate Law is offered under the name BLAW 3314.  A real estate law course is required to sit for the Texas real estate sales person licensing exam.  Check the course listings at http://www-ais2.uta.edu/sched/sprgld/REAL-ESTATE.htm
• I am looking for students interested in becoming an officer or committee member in the Student Society of Real Estate.  If interested, contact me at my e-mail address (hansz@uta.edu) and I will notify you when we hold our January officers’ meeting.  Officers typically meet two times per month.
• Our Graduate Teaching Assistant is Mr. Chanwit Phengpis.  His office is located in room 333 Business Building.  Phone number: (817) 272-7455 and e-mail address: pchanwit@yahoo.com.

Downloads:

• Amortization Table

• Fannie Mae Summary (.pdf)

• Fannie Mae: Introduction (.pdf)

• Fannie Mae: Tools (.pdf)

• Investment Problem Spreadsheet

• Contract Case (.pdf)

Relevant Articles:

Arlington Star Telegram (AST):

• AST 11/17/02 Making homes affordable is partnership leader’s goal (.pdf)

• AST 11/2/2002 Residents Say Plan Inadequate (.pdf)

• AST 10/30/2002 Survey Ranks Dallas as 5th Cheapest Meeting Site (.pdf)

• AST 10/27/2002 O.K. Carter on  Sprawl (.pdf)

• AST 10/18/2002 Area Ranks 10th in Urban Sprawl (.pdf)

• AST 10/2002 Plan Would Require Land or Cash for Parks (.pdf)

• AST 9/2002 Bombs not lowering homes’ appraisals (.pdf)

• AST 9/2002 Home Additions: Mortgage Rates may be low, but… (.pdf)

• AST 9/2002 Debt of Gratitude (.pdf)

Dallas Morning News (DMN):

• DMN 1/2002 Designation of new historic district gets criticism (.pdf)

Forbes (FBS):

• FBS 11/22/02 Five Signs Your Home is Overpriced (.pdf)

• FBS 11/15/2002 Profits Behind Bars (.pdf)

• FBS 10/25/2002 Real Estate Tax Break–Or Bite? 1030 exchanges (.pdf)

• FBS 10/2002 Billionaires Bet On Buildings (.pdf)

• FBS 9/2002 The Profit–And Paid–Of Being a Landlord (.pdf)

New York Times (NYT):

• NYT 12/1/02 Recession Strikes Texas, but Not in Oil-Bust Way

• NYT 11/4/2002 Earning More, but Struggling to Own a Home (.pdf)

Shorthorn (SH):

• SH 11/20/2002 Apartment owner says no to offer (.pdf)

• SH 11/8/2002 Campus Condemnation (.pdf)

Relevant Links:

• Anyone interested in a free report on the real estate industry?  Checkout the Lend Lease Real Estate Investment (http://www.lendleaserei.com/)
  Emerging Trends in Real Estate 2003 (http://www.lendleaserei.com/LLREI/freeform.nsf/Content/571774E730BBBEE685256C4C006A7235?OpenDocument).

• Anyone interested in receiving weekly e-mail updates on the Texas real estate market?  To subscribe go to http://recenter.tamu.edu

• Home-Buyers Guide: (http://recenter.tamu.edu/pdf/1044.pdf)

• Homeowner’s Guide: (http://recenter.tamu.edu/pdf/1415.pdf)

• Landlords and Tenants Guide: (http://recenter.tamu.edu/pdf/866.pdf)

• Texas Real Estate Sales and Broker Information: http://www.trec.state.tx.us/

• Example (not a recommendation) of an on-line mortgage lender: http//www.mortgagebot.com/

General Quiz Instructions:

• Please answer the following questions by selecting the best answer on your Scan-tron answer sheet.  Be very careful of erasure marks.  Your mark on the Scan-tron answer sheet is your final answer.  I suggest circling all answers in your test booklet and filling in the answer sheet at the end.  For the True/False questions, ‘A’ equals ‘True’ and ‘B’ equals ‘False.’  Please note: 
  • Keep your quiz booklet closed until the quiz is officially started.
  • You will need a basic calculator (no manuals), pencils, and a Scan-tron answer sheet.  Place your photo ID on the desk, photo-side up.  Put all other materials away.
  • Do not share calculators during the exam.
  • Remove baseball caps and turn-off/put away all pagers/cell phones.
  • Write your name, last 4 digits of your student ID number, and ‘REAE 3325 Quiz’ on the Scan-tron answer sheet.
  • You may mark (write-on) the exam booklets.
  • Do not look around the room or make any noise.  If you have a question, raise your hand and I will come to you.
  • Keep your Scan-tron answer sheet and test booklet in front of you.  (Don’t let the person behind you look off your papers.)
  • Answer the questions that you know and return to the question you don’t know toward the end.  Do not spend too much time on any one question.
  • Please watch your time as we must finish by 9:50 AM.
  • Do not remove test booklets from classroom.
  • Concentrate and do your best.  Good luck!

Time Value of Money Formulas:

• Future value of a lump sum: FV = PV(1+i)ⁿ

• Present Value of a Lump Sum: PV = FV [1/(1+i)ⁿ ]

• Present Value of an Annuity: PVA = A[(1-(1/(1+i)ⁿ ))/ i]

• Future Value of an Annuity: FVA = A[((1+i)ⁿ -1))/ i]

• Sinking Funds: SFP = FVA [ i / ((1+i)ⁿ -1))]

• Mortgage Payments: PMT = PVA [ i / ((1 – (1/(1+i)ⁿ )))]

Answers to Class Problems:

TVM Problem Set 1:

1.    $24,464,43

2.    $25,093.31

3.    $1,738.91

4.    $4,755.19

5.    $675,764.89

6.    $14,381.74

Qualifying the Buyer Problem 1:

PI=$614.30 (n=260, i%=.10/12, PV=70,000, FV=0, solve for PMT)

MHE = $614.230+ $84+$21+$24=$743.30

TMD=$743.30+$380+$65=$1,188.30

SMI=$3,200+$240=$3,440

MDR= MHE/SMI = $743.30/$3,440=.2161 –> Make the loan

TDR=TMD/SMI=$1,188.30/$3,440=.3454 —> Make the loan

Qualifying the Buyer Problem 2: (note: remember salary is $26,000 per year and delete the $4,000 in expenses.)

PI=$479.29

MHE=$479.29+$83+$36+$17=$615.29

TMD=$615.29+$200=$815.29

SMI=$26,000/12=$2,166.67

MDR=MHE/SMI=$615.29/$2,166.67=.284 –> Reject

TDR=TMD/SMI=$815.29/$2,166,67=.376–> Reject

Old Announcements (Fall 2002):

• Quiz 3 on Wednesday, November 6th and will cover chapters 19, 6, 7, and 8.  Also, be prepared for a couple questions from the two guest speaker presentations (Mr. Jeremy Normand and Dr. Paul Kennedy).  Quiz 3 will have approximately 30 questions.  See “quiz instructions” below.  Please bring pencils, photo ID, Scan-tron answer sheet, and a calculator.
• Deadline for all TVM Tutorials is December 6th (last day of class).  Get this out of the way before finals!
• You can turn in the Real Estate Today papers anytime.  The paper is worth 5% of your final grade.  Final deadline is December 6th (last day of class).  No need to procrastinate on this either.  Get it done so you can concentrate on final exams!
• The last class is reserved for review and no new material will be presented on December 6th.
• Need Time Value of Money Tutorial Help?  Visit the TVM Tutorial Lab in Room 336 Business Building Wednesday 1 to 5 PM and 7 to 11 PM and Thursday 8 to 10 AM. (phone number (817) 272-5422).