REAE 5334 Real Estate Appraisal

Final Exam Grades and Quiz Grades Posted

2008-12-13T18:47:00.002-06:00

Final exam grades and quiz grades (the average of your three highest quiz scores) have been posted to WebCT.

No Office Hours this Thursday

2008-12-01T15:02:00.001-06:00

Just fyi. I will be off-campus this Thursday and will not be able to hold office hours from 2 to 4 PM. As always, I will be checking e-mail.

Final Exam Announcement

2008-11-23T15:49:00.003-06:00

The final exam will cover chapters 12 through 27, with emphasis on the three approaches to value (but please don't forget about reconciliation, appraisal reporting, etc.). The exam is in three parts: part 1 - 50 objective style questions, part 2 - short answer and problems, part 3 - one essay question. Also, don't forget that appraisal project are due the day of the final exam.

Calculator missing?

2008-11-23T13:26:00.002-06:00

Did anyone leave a calculator in the classroom yesterday. If so, please contact me.

Southlake Town Square Trip: November 15th

2008-11-05T15:17:00.001-06:00

We have a special event coming up. We will discuss in class but please see the blog post at:

http://realestateprogram.blogspot.com/2008/11/soutlake-town-square-november-15th.html

Office hours today...

2008-11-04T13:10:00.001-06:00

Today is one of the Undergraduate Assembly meeting days (2-3:30 PM+/-). Please note if you were planning to stop in during office hours 2 to 4 PM. Sorry for any inconvenience.

Project people, bring a section to class

2008-10-31T18:46:00.004-05:00

This is not a requirement but a good opportunity for some feedback. If you are pursuing the valuation project option, bring a section of your appraisal report to class. Good sections to bring in include: neighborhood and area analysis, highest and best use analysis, any one of the three approaches to value, or the final reconciliation. We should have some time to review and critique your work.

Dprofiler files to get you started...

2008-10-27T11:00:00.003-05:00

Thanks again to Doug Maiden for spending Saturday with us and getting us up to speed on Dprofiler! Dprofiler is a very interesting piece of technology and I am betting it might create some job opportunities for students who can master the program. I was telling Doug during the break that I landed my first job due specialized knowledge with a program called Lotus 1-2-3 (for you younger folks, this was one of the first commercial spreadsheet or an old school version of Excel).

Doug left us with some files that you can download from our project web page:

http://www.uta.edu/faculty/hansz/5334/retailproject.htm

These files include (1) Bardin Center sim file (you need to put in the cladding for a full cost estimate), (2) Doug's PowerPoint presentation notes, and (3) the Dprofiler User Manual in pdf.

Remember, when you use Dprofiler in the REAE@UTA computer lab, you will likely need to refresh the network licenses (go to 'help' then select 'license'...).

Missing Keys to Mid-term (keys numbered "3")

2008-10-25T14:08:00.000-05:00

I am missing a set of the exam keys (both sections) for the mid-term exam. The missing keys are numbered "3." If you have this key, please contact me immediately at ahansz@gmail.com.

Also, if you can remember who was approximately the third person to come to the front to pick up the key please let me know. If you used keys 1, 2, or 4, 5, you might be able to recall who else was up front at the time.

I thought the instructions were straight forward...

Mid-term Grades Posted to WebCT

2008-10-19T16:47:00.003-05:00

Mid-term grades have been posted on WebCT. WebCT provides detailed statistics on the mid-term, but the mean/median was about 85%. Overall, pretty good job considering the amount of material that we have covered.

We will review the exam on Saturday. Your grade was calculated by summing up your points from both sections and dividing by 113.

New Urbanism Event on Campus (free to students)

2008-10-18T16:05:00.000-05:00

The Congress on New Urbanism

New Directions: A traditional green future for north Texas
a one day symposium and discussion

Friday October 24

School of Architecture
The University of Texas at Arlington

8:30am -- 5:30 pm

Free and open to students, faculty and staff

No prior registration required

Speakers include:

Jon Hockenyos
expert in economics and public policy

Peter Swift
dynamic leader in the area of walk-able communities

John Norquist
former mayor of Milwaukee, author, and expert in urban issues

Steve Mouzon
author, architect, and President of the New Urban Guild and Original Green.

Mid-term Exam

2008-10-13T12:07:00.003-05:00

The mid-term is this Saturday. Please bring a Scan-tron, pencils, and your basic financial calculator.

The mid-term will consist of a multiple choice section (100 questions), a problem (with several steps), and a writing section. The exam covers chapters 1 through 22 in a our text and student workbook.

No Office Hours this Afternoon

2008-10-09T11:01:00.001-05:00

I will be attending the Financial Management Association (FMA) conference today and will not make my office hours from 2 to 4 PM today. I will be checking e-mail and my phone.

OFFICE & INDUSTRIAL - SOLUTION

2008-09-27T11:01:00.000-05:00

Solutions:
1. Total employment growth = 20,000 / 1.75 = 11,429
2. Total occupying office = 11,429 x 20% = 2,286 persons
3. Office demand = 2,286 persons x 225 sf per person = 514,350 sf
4. Capture in subject market = 514,350 x 25% = 128,588 sf
5. Total demand for Class B in market = 128,588 sf x 50% / (1-5%) = 67,678 sf
6. Less: Existing, UC, proposed = (50,000 sf x 20% vacant) + 25,000 sf = 35,000 sf
7. Residual demand = 67,678 – 35,000 = 32,678 sf needed

Variations:
1. There may not be a frictional vacancy given. Compute demand without making up a vacancy.

SUBDIVISION LOTS - SOLUTION

2008-09-27T11:00:00.002-05:00

Solution:

Housing units demanded:

35,000 ¸2.75 x 60% = 7,636 single family units

Housing units per year:

7,636 ¸ 5 years = 1,527 per year

City wide supply:

500 + 100 + 750 = 1,350 lots & houses

Duration of supply:

1,350 / 1,527 = .88 years, or 10.6 months

Home prices in subject:

20,000 / .22 to 35,000 / .22 = $90,900 to $159,000

Incomes to qualify:

[90,900 x 90% x .0881* + (90,900 x .0275**)] / .28 = $34,700 (R)

[159,000 x 90% x .0881* + (159,000 x .0275**)] / .28 = $60,600 (R)

* Rm = 360 N, 8 ¸ 12 I, -1 PV, solve PMT x 12 (.0881)

** Taxes are 2% & insurance .75% of value = 2.75%

% who qualify:

The median income is $35,000 and 75% of the population is

within $25,000 of the median income, or $10,000 to $60,000.

Therefore, ½ of 75% is from $10,000 to $35,000 & ½ is from $35,000 to $60,000. This is translates to 75% divided by 2, or 37.5% of the population is in the range of the subject home value.

Lots/homes demanded:

1,527 per year x .375 = 572 units per year

Capture rate:

20%

Absorption:

572 x 20% = 114 lots per year

Sellout:

400 lots ¸ 114 = 3.5 years

Variations:

If the market study is for apartments, etc. (rental units), then instead of mortgage payments, look at affordability and rental payments that will be made.

Also look for % owner vs. renter, & possibly further segmentation based upon type of subject property (e.g. high amenity apartments, extended care facilities, etc.

The problem above gives the capture rate (20%) for the subject. You may be asked to make a judgment call on the test based upon competitive supply.

RETAIL - SOLUTION

2008-09-27T10:58:00.001-05:00

Solution:
1. Total income = 11,000 x $35,000 = $385,000,000
2. Retail sales potential = $385,000,000 x (1 - 25% - 45%) = $115,500,000
3. Retail sales by subject type = $115,500,000 x 20% = $23,100,000
4. Sales retention = $23,100,000 x 80% = $18,480,000
5. Primary sales sf required = $18,480,000 / $250 psf = 73,920 sf
6. Plus: Secondary sales = 73,920 x 1.15 = 85,008 sf
7. Plus: Frictional vacancy = 85,008 / (1 – 5%) = 89,482 sf
8. Less: Existing, U.C., propose = 250,000x20% + 50,000x25% + 40,000x15% = 68,500 sf
9. Shortage of space (next 5 years) = 89,482 sf – 68,500 = 20,982 sf

Office Hours Today

2008-09-23T11:47:00.001-05:00

I have an Undergraduate Assembly meeting today at 2 PM. Typically, I am back at the office around 3 PM, but these meetings vary in length. Please note this if you are planning to stop-in during office hours (2 to 4 PM) today. Sorry for any inconvenience.

South Arlington Shopping Center Article

2008-09-22T15:22:00.003-05:00

Last year the subject of the appraisal reports was a Shopping Center in South Arlington owned by Steve Isbell. Steve is quoted in the newspaper talking about this center at http://www.star-telegram.com/100/story/891129.html. This property is right around the corner from the Bardin Plaza property.

WebCT update

2008-09-20T16:16:00.000-05:00

Ooops, my bad. I didn't release the name columns in WebCT. Now your name and quiz grades should be viewable in WebCT. Sorry!

A good start with project data

2008-09-16T11:08:00.002-05:00

Once again, Jay Redford has helped us out tremendously with the projects. I just posted three pdfs with some good information on land sales, improved property sales, and rentals for the projects.

Just a reminder this is by no means all the data that you will need, but it is a good start. Check it out at http://www.uta.edu/faculty/hansz/5334/retailproject.htm.

Quiz 1 and 2 statistics

2008-09-15T16:06:00.003-05:00

For your reference, here are some summary stats on Quiz 1 and Quiz 2.

Quiz 1 (25 total points)
High score 25
Low score 19
Average 21.76
Median 22.0

Quiz 2 (25 total points)
High score 24
Low score 11
Average 18.78
Median 19.0

Please check WebCT

2008-09-14T20:59:00.000-05:00

The class roster and Quiz 1 and Quiz 2 grades have been loaded into WebCT. Please log on at www.uta.edu/webct using your UTA user name and ID to make sure that you are on the roster.

Please never contact me through the WebCT e-mail function. Since I only use WebCT for posting grades, I do not check the WebCT e-mail on a regular basis. Thank you.