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My Honors Thesis is about answering a central question regarding the business of real estate: "What is the return on investment of obtaining a real estate license?" I focused my research on the monetary, time, and other value factors that affect the initial cost of securing a real estate salesperson

My Honors Thesis is about answering a central question regarding the business of real estate: "What is the return on investment of obtaining a real estate license?" I focused my research on the monetary, time, and other value factors that affect the initial cost of securing a real estate salesperson license in the State of Arizona (costs) and the amount of money a licensed salesperson makes as a result of having a salesperson license (income). Licensees make this trade-off: the cost in terms of real dollars to obtain a license, as well as the opportunity costs associated with the time to secure, start using, and begin to earn money by way of a salesperson license. To answer the central question I conducted a survey of active licensees in order to determine the value ascribed to holding a real estate salesperson license. Through my research, I concluded that there is not a single number that can be assigned to a real estate license that indicates its value, but the data collected reveals that the return on investment has the potential to be great. Upfront costs and fees necessary to obtain a license are insignificant when the commission a licensee can then make from a single transaction is enough to cover those expenses. Therefore, based on the survey results and research into the initial costs associated with obtaining a real estate license, there appears to be sufficient data to support a positive return on investment and warrant obtaining a real estate license.
ContributorsSanders, Sarah (Author) / Stapp, Mark (Thesis director) / Koblenz, Blair (Committee member) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description

My Barrett Honors Thesis focuses on answering the question of whether a current owner of a single family home in Tempe, Arizona would receive an adequate return on investment (“ROI”) to justify adding an accessory dwelling unit (“ADU”) on their property for the purpose of generating rental income and capital

My Barrett Honors Thesis focuses on answering the question of whether a current owner of a single family home in Tempe, Arizona would receive an adequate return on investment (“ROI”) to justify adding an accessory dwelling unit (“ADU”) on their property for the purpose of generating rental income and capital appreciation. I focused my research on Tempe’s zoning regulations, ADU general contractor (“GC”) options, possible parcels, proposed construction plans and budget, and lastly, a pro forma to determine ROI. After conducting the research, discussing with several GCs, and modeling returns, I determined that unlevered ADU development constitutes a novelty, not a solid investment choice with today’s market conditions. Factors that would change this recommendation decision would include a decrease in interest rates or a tempering of construction costs.

ContributorsFeffer, Adam (Author) / Koblenz, Blair (Thesis director) / Stapp, Mark (Thesis director) / Barrett, The Honors College (Contributor) / Department of Information Systems (Contributor) / Department of Finance (Contributor)
Created2023-05
ContributorsFeffer, Adam (Author) / Koblenz, Blair (Thesis director) / Stapp, Mark (Thesis director) / Barrett, The Honors College (Contributor) / Department of Information Systems (Contributor) / Department of Finance (Contributor)
Created2023-05
ContributorsFeffer, Adam (Author) / Koblenz, Blair (Thesis director) / Stapp, Mark (Thesis director) / Barrett, The Honors College (Contributor) / Department of Information Systems (Contributor) / Department of Finance (Contributor)
Created2023-05