Introduction
This exercise involved analyzing real estate and attempting to sell a house while determining a fair price for the property. The 3rd ward was used to find homes for sale and we choose to analyze the property at 1524 Frederic Street. Many factors were taken into account when determining the price for the home including unique features, surrounding property value, tapestry segment data from business analyst, and target consumers.
Methods
Nathan Schaffer and I worked together in this exercise. The first step was to walk around the 3rd ward and find a property for sale to analyze and attempt to sell. We arrived at 1524 Frederic Street and immediately took interest in the separate garage with a loft above it, cedar shake siding, and a beautiful porch on the house. We chose this property because of its unique features and location in the 3rd ward. It seemed to be a very nice part of the 3rd ward and family friendly. The next step in the process of analyzing this real estate was to study the entire surrounding 3rd ward neighborhood. To do this we had search for data on the third ward and our most valuable source by far was the Eau Claire Comprehensive Plan 2015. We used a variety of different data to analyze the property including housing stock comparison, average number of defects, the value of the surrounding occupied housing, pattern of the land use, and age distribution. We used the compiled data to analyze the third ward and find a fair price for our house based on the data we analyzed. After lots of discussion and factoring, we arrived at an agreement on the price of the house.
Results
$258,900 was the price we arrived at. There was a lot data and variables involved in the analyzing process, but in the end the main factors were unique features of the house, surrounding property usage, surrounding land value, target consumers, and average number of defects to the house. The unique features of our house were a 16 x 23 ft. loft over a detached garage, cedar-shake siding, an exceptional porch, a master bath, and extensive renovations. The renovations were electrical, plumbing, HVAC, and a the roof. The average number of defects on the house were 0-2 for the given area in the third ward. The surrounding property was mainly single family residential, which means one of the criteria of our consumers was being a single family. The surrounding land value in the 3rd ward has more than 70% of properties costing $150,000 or more. Our target consumers were families with children with an income of $75,000+, graduate/professional/doctorate degrees (specifically people working with those degrees), and progressive, community oriented people. Finally we took into account what this house has sold for in the past and some other houses recently sold in the area. The house has sold for $200,000 in the past. Recent houses in the area were selling for $279,000, $289,000, and $299,000. We thought that we wanted to grab the market with a lower price than the surrounding market but to be careful to not go too low. We arrived at the price of $258,900. After lots of discussion and comparison of the surrounding area, we agreed that that was the most fair price.
Conclusion
I really enjoyed this assignment. It was very open-ended in a way that let us choose how to sell a house based on a long list of variables that could apply to the price of the house. The process of analyzing and agreeing upon a price felt like a real-world exercise and I enjoyed researching data on such a local area close to campus. The presentation format fit nicely with the final results of the project and it was fun to reveal the final price we arrived at after a lot of analyzing and discussion. My final thoughts are that this felt like excellent experience for the future and it sparked my interest in urban geography and economics.
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