To a prospective home buyer the numerous considerations and steps involved in making a real estate purchasing decision and the interaction with the different market players to conclude a transaction, can be confusing and bewildering. Real Estate Decisions, written from a real estate consumer (buyer, seller, or real estate agent) viewpoint, is specially structured to respond to questions that consumers would face at various stages of their decision‐making process. Though the targeted audience for this book are students reading a one‐semester or a one‐quarter course in the principles of real estate, first‐time homebuyers should find this book to be a useful reference too.
The book is organized along a “need to know” basis that provides readers with an intuitive framework of the type of information needed to answer the questions asked at various stages of the consumer’s real estate decision‐making process. Each chapter starts with a list of learning objectives and important terminologies and ends with a list of review questions that tests readers’ comprehension of the material covered. The lists are useful teaching aids to lecturers and readers as they consolidate the main learning objectives of each chapter.
Diagrams, worked examples and exhibits are well used throughout the book to facilitate readers’ understanding of the theoretical concepts presented. The inclusion of Internet applications is a useful feature; referring readers to the relevant resource Web sites enhances the materials covered in the book. The Internet applications also serve as avenues to provide the latest information and supplementary materials to the readers.
The information is thoughtfully presented in an easy‐to‐read manner, with a good balance of theoretical concepts and applied material. The materials are organized into eight parts, each part responding to a decision in a typical decision‐making process. These decisions are:
to acquire knowledge about real estate;
to estimate market value;
to finance the transaction;
to buy or sell the property;
to manage the property and seek information about the lease;
to acquire or transfer the property; and
to develop the property.
The clustering of information in response to these eight decisions creates the continuity between chapters, yet each part could be read by itself without loss of continuity with other parts. With this structure, legal terminologies can be integrated into the various chapters rather than discussed as a separate topic.
Another good feature of this book is the use of realistic scenarios and examples to illustrate how theoretical concepts are applied in the decision‐making process. These examples are used in chapters on market value estimation, real estate market analysis and investment analysis. In addition, the coverage on procedures for loan applications, agency contracts and legal contracts for acquiring or transferring the property provides readers with a general idea of the hands‐on requirements in a property transaction.
Since the emphasis of the book is to provide consumers with information they need to know to make decisions in a real estate transaction, important concepts, terms, market players and institutions involved in the real estate decision‐making process are discussed in a concise but broad manner. The materials covered touch only the surface of the various subject matters, and there are no further directions in the book that point interested readers to more in‐depth resources. One recommendation is to provide a short paragraph in the relevant chapters that gives directions to more in‐depth resources. Alternatively, the existing Internet applications could include on‐line links to these resources. These resources would not only help readers relate to more advance subjects but also help homebuyers who are faced with more complicated situations not found in a typical real estate transaction to search for solutions.
The consumer perspective orientation focused the discussions and the materials to questions faced by homeowners or small‐scale investors in the residential markets. Although this perspective provides a good flow to the book, it results in limited discussions on questions that more commercial or business‐consumer audiences face in their decision‐making process. In addition, the examples presented and the institutions, market players, regulations and procedures discussed are confined to the American context. This constraint might limit the application of the book outside the USA.
Overall, this book is a useful text for novice students and first‐time homebuyers and a useful reference text for real estate agents or sales associates. By structuring the materials to match with the stages in a consumer’s decision‐making process, the authors of Real Estate Decisions provide readers with a good overall framework to understand the various types of information needed to make decisions in a typical real estate transaction, and lecturers a good teaching guide to introducing real estate fundamentals. Although the book may have limited application outside the USA, students in other countries would find the structure of the book and its explanation of theoretical concepts beneficial.
