FRL 3062: Fundamentals of Real Estate

March 21, 2022
Please answer the questions below and submit them on Canvas to the Turnitin assignment
created for this midterm exam. Remember to show your calculations for each answer so you
can get partial credit.
Manage your time carefully: You have 75 minutes to complete this exam. There are 4 questions.
That’s 18 ¾ minutes per question. If you don’t know the answer to a question, make your best
guess and move on. You want to attempt to answer every question in the time allotted.
You are a broker for high-end residential real estate. You meet a potential new client, 40-yearold tech billionaire Jay Smedley. To win his business, you have to find the right house for him
and walk him through all the important decisions he needs to make.
1. Mr. Smedley has narrowed the search down to his three favorite properties:
a. 15000 Corona Del Mar, Pacific Palisades, CA 90272
b. 23622 Malibu Colony Rd, Malibu, CA 90265
c. 64 Laurel Dr, Rancho Palos Verdes, CA 90275
He wants your help to pick the perfect house for him. Here are his preferences:
• He likes new construction. He doesn’t want to maintain a very old house.
• He has an expensive, growing art collection. He wants high ceilings and big, open
walls to display his paintings.
• He values a good view. He wants to be able to see the water from as many rooms in
the house as possible.
• He is recently married, and he plans to have several kids. He will hire a live-in nanny
to take care of the kids. He wants to be able to have peace-and-quiet on his side of
the house, while the kids have their own wing to play in.
• He works from home. He needs a good home office. He doesn’t care about being close
to the CBD. He’ll make people come to him, and he wants to impress them.
Which house do you pick, and why?
For the rest of the exam, please use the house that you chose in your answer to Question #1.
You can ignore the other two.