Condo Case

After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.

Brownsville, Texas the city located on the border with Mexico also known as on the border by the sea. The poorest city in Texas became a target for a homicide that impacted the family and including the community.

Goodlife Management is the sole provider of apartments available for rent in the city of Atlantis in which the supply and demand simulation provided by UPOX takes place. The simulation provides excellent, real-life examples of how the supply and demand curves may shift based upon various factors that occur within the market in Atlantis. The following details such examples as microeconomics versus macroeconomics, equilibrium pricing, and what drives the elasticity of the market price of the two-bedroom apartments that are available for rent in Atlantis.

Atlantis is a nice neighborhood with services consumers look for. A two-bedroom apartment in Atlantis is presented to show the effects of supply and demand. I am the property manager

The change in expectations of management caused the supply of two-bedroom apartments to decrease. The expectation was that more individuals would prefer to live in a condo vice the two-bedroom apartment. It also eventually occurred and as a result, this factor caused the supply curve to shift to the

IN THE UNIVERSITY OF PHOENIX SIMULATION (2003), APPLYING SUPPLY AND DEMAND CONCEPTS, A SITUATION IS PRESENTED CONCERNING THE SUPPLY AND DEMAND OF TWO-BEDROOM RENTAL APARTMENTS IN ATLANTIS. THROUGHOUT THE SIMULATION SCENARIOS ARE PRESENTED AND CHOICES MUST BE MADE REGARDING "FACTORS THAT AFFECT DEMAND AND SUPPLY, AND THEREFORE, EQUILIBRIUM" (UNIVERSITY OF PHOENIX, 2003, PARA. 5).

In property management a manager’s success and reputation is built around their complex, their vacancy and occupancy rate and their customer service. Realistically, however, the prizes and recognition come to those who have a high occupancy rate and continuously maintain a low vacancy. The prices are determined on what the market is showing at the time.

This case involves an investigation of the factors that affect the sale price of Oceanside condominium units. It represents an extension of an analysis of the same data by Herman Kelting (1979). Although condo sale prices have increased dramatically over the past 20 years, the relationship between these factors and sale price remain about the same. Consequently, the data provide valuable insight into today’s condominium sales market.

Option 2 (Proceed with Mid-Rise Apartment Complex, Selling in Year 10): While replacing the current structure with a more appealing mid-rise apartment complex would increase the market value of the property, it would also require financing and additional investments. Thus far, Sexton has run into several problems, beginning with the planning commission, and now higher cost estimates, financing and timing issues. Even if Sexton were to obtain financing and somehow meet the January 2005 target date, his original estimates of rental income and cash flow analysis are still not guaranteed. Exhibit 2 provides a net present value range between 103,000 and $214,000 for proceeding with the mid-rise apartment complex and selling in year 10 based on a range of cap rates.

For several years, our organization has distinguished itself for providing excellent service at our apartment complex. However, our apartment complex has seen an issue arise in the past year. Currently, we have a seventy percent occupancy rate. Henceforth, we are losing $30,000 dollars and monthly rental revenue. Due to the loss of rental revenue, we have had to lay off one of our part-time employee, thus increasing the workload for our maintenance technician. Additionally, several of the residents that vacate go to our competitor, Regency Apartments. Regency Apartments have proved to have more amenities than our firm. For example, they offer their residents a free membership to the gym down the street. The issue at hand is clear. In order

In order to answer this question we first have to consider whether the value provided to the commercial and residential markets is the same. While it may look like the value is similar, upon closer inspection, we can identify an important distinction between the values provided to the two markets:

Gulf Real Estate Properties, Inc., is a real estate firm located in southwest Florida. The company, which advertises itself as “expert in the real estate market,” monitors condominium sales by collecting data on location, list price, sale price, and number of days it takes to sell each unit. Each condominium is classified as Gulf View if it is located directly on the Gulf of Mexico or No Gulf View if it is located on the bay or a golf course, near but not on the Gulf. Sample data from the Multiple Listing Service in Naples, Florida, provided recent sales data for 40 Gulf View condominiums and 18 No Gulf View condominiums. Prices are in thousands of dollars.

CBPRO is a leading real estate company in Virginia, an independent franchisor of the Coldwell banker brand since 2001. CBPRO’s business focuses on residential real estate services such as selling, buying, and leasing houses; has 299 agents in 13 offices. The residential real estate industry is influenced by the ups and downs of the economy. In good times it fuels consumers confidence and spending, and in bad times consumers are cautious and not willing to invest in a house etc. CBPRO had a breaking sale of 2,848 percent in the first three years of services and during the plummet in the economy, sales flattened down to 2.5 percent, as was the case with the industry in general. (Coldwell Banker – Virginia Beach, Page 279). Due to high competition in the residential real estate industry (especially locally), coupled with fluctuating national economic conditions, and narrowly defined target customers, CBPRO faced several distinctive challenges; residential and clients lists were important to CBPRO business and to its competitors, especially the local competitors.

The data for the second test to be conducted by our group consists of lot sizes of the residential properties that are up for sale in Toronto and Vancouver. The samples are represented in m2 (metres squared; area of the land in which the residential properties are built on). The data taken are based on the properties that are up for

A difficult characteristic to understand about the housing market is how a price is given for a particular house. That price will be designated to that particular house alone. All houses have various pricing, so I can’t always assume that one will cost more or less than any other. The pricing for houses vary based on their characteristics. Each characteristic must be analyzed to determine its contribution or detraction toward the price. I have taken some of these characteristics and modeled the relationship between them and the price of real estate for a specific area.