Buying a HomeSH

NPSD S’11

Choosing ‘THE ONE ’

• How to choose the proper house to start a family?

• What if I improperly choose? What would be the consequence?- Bad Investment- Having to move when the family grows- Neighborhood doesn’t offer the amenities desired

• Where do I start?

Overwhelming

David to the Rescue with theNew Product & Development Funnel

Phase 1: Ideation

• Generate as many options as possible all available 2 family homes in Queens

• Use the following as tools: -Spend more mental time in the future -Mind map different cities in Queens -Take field trips of the different neighborhoods -Entertain radical thoughts about what you would like in a dream house.

Idea Bank

• Parameters for the Idea Bank Selection- Must be < $950,000- 2 Family- In Queens- 2 or more Floors- Have a backyard

• 100 or more homes

Phase 2 :Elimination

1) Ideation Screen- Must be brick- Different modes of public

transportation- Close proximity to food

markets and malls- Must not be near any traffic

Gatekeeper = Real Estate Agent

Phase 2 : Elimination

2) Expansion & Surface Evaluation- Narrow down the area desired- Talk to the neighbors- Walk around area- Drive from house to markets- Trial run the public transportation

Only 7 Homes Remain

New Ideas

Phase 2 : Elimination

3) Surface Evaluation Screen- Enough Space for Present & Future- Good Neighborhood- Less than 1.5 hours commute to work- No remodeling necessary- Must have at least 3 rooms per floor- Parking Space

Gatekeeper = Real Estate Agent

Phase 2 : Elimination

4) Detailed Evaluation - Good School District - Low Home Turnover rate - Must be near family - Washer/Dryer - Sizeable kitchen - Must like floor plan

ONLY 3 Homes Remain in Selection

Phase 2 : Elimination

5) Detailed Evaluation Screen - The Mom Test

Mom & Dad will check if the chosen house meets all criteria and suits my needs

Only 1 House will be selected

Time to Spend $$$$$$

Transition Turn

• The stage in which the CHOSEN

one has been identified• Prior to this stage, everything was just talk, no investments have been made • Going forward, everything requires $$$$

Cross – Functional Development

- Each engaged team will execute their own sub-funnels- Preparation with the following teams:

• Home Inspection• Mortgage Pre-Approval and

available products.• Research comparable offering

prices in area.

Cross Functional Development Gate

- Review the results from each team• Home Inspection• Appraiser• Financial Lender

- Ensure the house is in line with original parameters.

Gate Keeper = Accountant

Testing

- Final Walkthrough of house- Loan Approved- House Inspection Passed- Spoke with attorneys- Appraisal above purchase value

Testing Gate

- Trial commute to work- Explore the neighborhood- Speak with neighbors- Drive to markets- Speak with school principals

Gate Keeper = Family

Deployment

- Entering into earnest money agreement with the seller.

Deployment Gate

- Seller accepts the offer and agrees to contract

- Seller fulfills all pre-closing conditions

- Lawyers prepared closing documents

- Mortgage secured

Launch

House Closing- Sign mortgage- Sign closing documents- Provide seller with check

Post Launch Review