8/5/2021

Francis P. Santana
Daily Report

BASIC MARKET ANALYSIS

This course is all about knowing the basic information and overview about Market
Analysis. This includes the topic like the Market area, Market Analysis introduction,
creating market map, process of analyzing neighborhood and generating neighborhood.
I will be providing my insights, takeaways and my challenges to the topics I have
taken which summarizes the course as well. It will serve as my notes or reference and
will give me an easy understanding throughout the entire course.

*Market Area
As far as research is concern, it is very necessary to know first about the target area or
basically what we termed as Market area. Being able to have a thorough grasp to the
Market area would help you in terms of scrutiny on the specific location, population,
amenities and subdivisions. This will be your basis on your data in analyzing it to create
a certain subject. In this section, I have learnt about the physical geography of the
Market area, which is in Orland, Florida. Orlando City, is in the center of the Map, which
is somehow safer when there are natural phenomena and can easily restore services.
Based on the video, it explains the different places inside and outside Orland’s vicinity.
One of its places is the College Park which is an expensive are to live. Another
neighboring area is the Winter Park that has a wide area and is an exclusive area in the
town. In the West part of Orlando, drugs are sold on this are, making it to be the highest
crime rate place. Tourist haven attractions like Sea world, Universal Studio,
International drive can be found on the west part of the city. One of those are the
Golden Oak which is the middle of Disney and Championsgate. These places have
expensive homes and properties in which people have instant access to the attractions.
My biggest takeaway on this topic is that, the farther you get on the city of Orlando, the
least expensive dirt is and the closer you live the more expensive the dirt is or has
expensive real state.
On the other hand, there is this plan that is called Planned unit development which
embraces of creating the city. With this, people will have access to all things or
essentials and not going outside their community. Avalon Park and The Villages are
part of the said plan wherein they built their own community and be dependent as they
have access of many things and to amenities. However, Bithlo which is like an isolated
area has less amenities and resources.
*Market Analysis
This is an overview about Market analysis where it requires analyzing of subject's
information on how many comparable listing and sales in the subject neighborhood/
market. We need to get accounts how many are there on the subject market to analyze
and summarize data and put it on a report.
What I learned on this topic is the process in collating details and knowing specific data
to the subject neighborhood. With the use of MLS tools, it helps sort out the details by
entering the data which gives you the number of subdivisions on the specific distance of
the market you provided. And that’s where you analyze the result.
As for the process itself, you need to search for the specific location and put the legal
subdivision name to look for the properties on it. We need to analyze sold data
properties from a year or 365 days as our bias. On the other hand, active contract or
pending properties are not sold properties.
In a certain subdivision, it typically has 3 bedrooms and 2 bathrooms so that’s the
quantity that we input. For the subject sq ft, we are looking for a comparable sold
properties so we go up and down for 20-25% for the subject.
Next is for the age, we need to consider the era of the homes and that’s where I learned
the history of the properties in the US as follows:
1940s - World War 2 started
1950 - Soldiers making a lot babies resulting a demand for housing - surge housing
inventory up till 1970s
1970 - problems with the economy occur - spikes up taxflation -housing inventory went
down till 1980.
1980 - went down – demand goes up for prices - properties being built again due to
increase of citrus population
1990 -2000 lot of homes built.
2000 – There is this called 9/11 which causes to pop up the real estate market and
lowers intrastate -
2001-2002- house prices rise dramatically. Baby boomers - born 1940-20s they are in
the retirement ages - get their money in investments - going up in value-.
New houses built in 2000s ended up in stopping in 2007-2008 - money is unsustainable
and saturable
Houses failed dramatically in 2009 and up
2010-2011 economy is peaking up till 2015 - resurgences in home building
There was an era in real estate market between 1940 and 1970 - certain type of house
built or model or style - houses look different surge in 1980s
Year built ex 1975- 1999 (Age)
Pricing is somehow the same pricing on the spectrum of the map.
The History helps us in which era should we need to consider in getting our subject
neighborhood/ Market.

*Creating the Market Map

In this section, I learned about creating the Market Map retained in the work file. The
market map will help identify the most appropriate area to choose comparables and
perform market analysis.
In creating the Market Map, you need to define or consider where the property lies.
Once you already have the area of the Map, draw line in the major streets and create
like a polygon from the side of the streets to create a boundary of your neighborhood.
Define the market by clicking Develop a map and Print to the work file and save as pdf.

*Process of analyzing the Neighborhood.

In this section, I learned about how to get the numbers in Appraisal report. First is to set
the subject to a certain age or year, say for example 1979-1999. Select all active
contracts and pending contracts and get the results. Click all of the date found and click
CMA. It will give the minimum and maximum numbers of neighborhood and saved it as
neighborhood comps. Export the date or comps to a text file (default data).
In the appraisal report under One unit housing, get the high and low on the area by
sorting out the list price in the results. Under built, subtract the current year to the
highest year and that is the high on the appraisal report. For the low, subtract the
current year to the highest year and check the completed sections once done.

*Generating the Neighborhood Comparables

In generating neighborhood comparables, we will be using the Data Master as this the
tool that will help analyze the Marker. On this tool, go to get Comparables option and
import neighborhood comps, the file we saved earlier then select send to the main port.
The best way of way of analyzing data is to view the graph to have a more conclusive
analysis of the market. Go to work file, paste the graph to the Microsoft word and save
it. After that, answer the questions by referring to the graphs. Look the trend line and
see it it’s decreasing, increasing or stable. Prevalent is 26% and above. If the
foreclosure is down, the price goes up. Predominant is the median.

Challenges
We cannot deny the fact, that in every course we take, we came up with confusions and
questions in our mind. However, that is normal as that is part of learning. I honestly
have many challenges while I’m taking the training video though. I would consider the
tools as my main challenge in this course. Aside from the fact that I am not familiar with
the tools yet like MLS, Data Master and etc., it so hard to imagine things without the
actual tools and not knowing its parts’ usage. I believe that the best way of learning is
by doing practical activities and I think navigation of tools is one of that. Another thing is
I’m also not familiar with the Jargons words used which I believe are very important to
know. But I do think as I go along the process or on the next course, I would be able to
know more about it. Nonetheless, I had fun and learned many things about Market
analysis which would help me understand as well as I move forward.