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    Housing Market Worksheet

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    api-408733519
    Katelyn Hartley completed a housing market simulation where she sold her current home for $135,000 and used the $30,000 equity to purchase a new home for $145,000. She was able to live within her means and pay for the home without taking out a loan. Her new home has 4 bedrooms and 2 baths with a large kitchen and living room with hardwood floors and big windows. Through the simulation, she learned important details about the home buying process like loan types, negotiation of prices and closing costs. Completing the project gave her valuable insights that she hopes to apply when purchasing her first real home.

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    Housing Market Worksheet

    Uploaded by

    api-408733519
    180 views6 pages
    Katelyn Hartley completed a housing market simulation where she sold her current home for $135,000 and used the $30,000 equity to purchase a new home for $145,000. She was able to live within her means and pay for the home without taking out a loan. Her new home has 4 bedrooms and 2 baths with a large kitchen and living room with hardwood floors and big windows. Through the simulation, she learned important details about the home buying process like loan types, negotiation of prices and closing costs. Completing the project gave her valuable insights that she hopes to apply when purchasing her first real home.

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    Katelyn Hartley completed a housing market simulation where she sold her current home for $135,000 and used the $30,000 equity to purchase a new home for $145,000. She was able to live within her means and pay for the home without taking out a loan. Her new home has 4 bedrooms and 2 baths with a large kitchen and living room with hardwood floors and big windows. Through the simulation, she learned important details about the home buying process like loan types, negotiation of prices and closing costs. Completing the project gave her valuable insights that she hopes to apply when purchasing her first real home.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    180 views6 pages

    Housing Market Worksheet

    Uploaded by

    api-408733519
    Katelyn Hartley completed a housing market simulation where she sold her current home for $135,000 and used the $30,000 equity to purchase a new home for $145,000. She was able to live within her means and pay for the home without taking out a loan. Her new home has 4 bedrooms and 2 baths with a large kitchen and living room with hardwood floors and big windows. Through the simulation, she learned important details about the home buying process like loan types, negotiation of prices and closing costs. Completing the project gave her valuable insights that she hopes to apply when purchasing her first real home.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Housing Market Worksheet

    Name _______Katelyn Hartley _______________________

    Selling Your Home


    1. Post your current home for sell in the HFED Housing Market on Facebook. Take a
    screenshot of your post and place it here on the worksheet.
    **If using a “real estate agent”, write the amount of your fee here:
    _________________________ (6% of the price of your home)

    DEADLINE: Friday, March 11th

    Buying Your Home


    1. Career _____________Family Consumer Science Teacher
    __________________________
    2. Monthly Take-home pay __Gross: $2666, Net
    $1786_________________________________
    3. What information do you see on your credit report? Are there any errors?
    a. I filled out the application on freecreditreport.com and it said, “unable to
    confirm request at this time” I am a Canadian citizen and have not had credit in
    the United States so I believe this is why. To obtain a credit score in Canada you
    have to fill out an application and then they send it to you in the mail.

    4. 25% of take home pay ___________$666/month__________________________


    33% of take home pay _____________________$880/month________________
    5. How much money do you have left on your budget for housing costs?
    ______________$1396__________
    6. Prequalified loan amount? ___________$185,401_____________________
    7. Interest Rate Comparison. List the name of the financial institution you looked at and
    the interest rate they were offering.
    a. Bankrate.com ________3.923 %________________
    b. 2nd Financial Institution _______3.78%_____________________
    c. 3rd Financial Institution ____________3.839%_________________
    8. 15 year Mortgage or 30 year mortgage
    a. Why?
    i. Lower interest rate, able to pay it off faster.
    9. Post 3 questions about the home you want to buy on the house posting. Add a
    screenshot of your questions to this worksheet.

    10. Purchase price of house you want to buy


    ______________$145,000___________________
    a. Equity amount drawn in class ________$30
    000____________________________
    (Realtors – Add 6% of purchase price for home you listed on behalf of classmate.
    Those paying for a realtor – Subtract 6% (See number1 above from your equity
    amount in 10a)
    b. Purchase Price – Equity amount = _____________$115,000_______(Mortgage
    Amount)
    11. Estimated Monthly Insurance _______________$42.00________________
    12. Estimated Monthly Property Taxes __________________________________
    13. Estimated Monthly Maintenance Fees ________________$20______________
    14. Estimated Monthly Utilities ___________________$100__________________
    15. Water and Sewer Cost _________________$60/month______________________
    16. Attach the completed budget to this document.
    17. HUD Statement- List prices for each item listed below in the column for the person
    responsible for paying the fee at closing.
    Buyer Seller
    Purchase Price $145,000
    Down Payment $30,000
    (Amount of equity - your
    part of closing costs)
    Earnest Money $1450
    Points $1320
    Real estate Transfer Taxes $1450
    Realtor Fees $335
    Closing Costs $2640
    Attorney Fees $200
    Title Insurance $290
    Title Search $200
    Home inspection $350
    GRAND TOTALS $148,810 $4425

    18. Write a purchase contract for the sale of your home. Sign it and obtain signatures
    from your buyer. Attach it to this document.
    a. Purchase Contract
    Purchase Price: $135 000
    b. Earnest Money: $2700 (buyer will pay)
    c. Real Estate Transfer Taxes: $2700 (seller will pay)
    d. Realtor Fees: $8100 (seller will pay $5100, buyer will $3000)
    e. Closing Costs: $4050 (buyer will pay)
    f. Attorney Fee: $6750 (seller will pay $3000, buyer will pay $3750)
    g. Home Inspection: buyer will pay
    h. * All prices are subject to negotiation.
    i.
    19. Post your house as sold on the HFED Housing Market
    20. Write a 1 page summary paper and attach it to this document.
    Housing Project Summary

    FCS 340

    Katelyn Hartley

    I really enjoyed doing this project! At first I was a little apprehensive, but once I read the

    instructions it all started making sense. It was a great stimulation to what it really will be like

    when I buy my first home. My goal was to live within my means and not obtain a loan, I am

    happy to report that I did it! I sold my home for $135,000 and had $30,000 equity. This meant

    I had $165,000. The house I purchased was $145,000. The remaining $20,000 went to closing

    costs/fees and what was left over went to savings (for home renovations one day!)

    The home I purchased is 4 bedrooms and 2 baths. My favorite part is the kitchen. It is

    HUGE. It is a L-shaped kitchen floor plan. I love all the cupboard and counter space, and the

    dining room is perfect for having people over. It is hard to tell from the pictures, but it looks to

    me that the cupboards need to be redone. The money I put into savings will be a good start to

    saving for renovations for it.

    Another part I love about the house is the hardwood floor in the living room, as well as

    the big windows. A lot of light will fill the room, and light, mixed with the warm sun will bring

    happiness and cheeriness into the room.

    The biggest thing I learned from this assignment is the importance of understanding the

    details of home buying. Examples of this include the difference between at 15yr loan versus a

    30yr loan, negotiation of price, and how to negotiate closing costs. During this project I was

    able to learn the importance of all these details. I hope I can use the information I learned

    from this assignment into my future home purchasing career.

    21. Co mpile all parts of this assignment into one document and submit in iLearn.
    DEADLINE: Wednesday, March 16th, 11:59 p.m.

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