We are incredibly grateful to have a panel of experienced Realtors participating in this project, bringing valuable insights and expertise directly into the classroom. Their involvement provides students with an invaluable learning experience, connecting classroom theory with real-world industry knowledge.
As part of their Personal Finance curriculum, JMU students will complete a homebuying simulation that immerses them in the decision-making process of purchasing a home. This hands-on project helps students develop financial literacy skills by navigating the complexities of selecting and evaluating potential home purchases. After completing the simulation, students will present their project findings, showcasing their analysis and final property choice. Following their presentations, the Realtor panel will provide professional suggestions, offering feedback that enhances students’ understanding of the home buying process.
About the author: Jeff Hulett leads Personal Finance Reimagined, a decision-making and financial education platform. He teaches personal finance at James Madison University and provides personal finance seminars. Check out his book -- Making Choices, Making Money: Your Guide to Making Confident Financial Decisions.
Jeff is a career banker, data scientist, behavioral economist, and choice architect. Jeff has held banking and consulting leadership roles at Wells Fargo, Citibank, KPMG, and IBM.
Project Overview
In this simulation, student teams, known as “decision teams,” are assigned a hypothetical budget of $550,000 for a home purchase. Each team will identify and evaluate properties in their chosen market area, such as Arlington, VA, using real estate tools like Zillow. The process includes individually defining and weighing buying criteria before collaboratively deciding on a single home purchase.
Each student will independently research properties, select two options to bring to the team, and then evaluate all selected properties using predetermined criteria. Teams will reconcile differing opinions and scores to create a unified evaluation of each option. Ultimately, the decision lead—the student with the last name later in alphabetical order—will report the cost-benefit analysis for each option, reflecting the group’s consensus or average evaluations.
Process and Tools
The project involves several key steps:
Setting Criteria: Students first individually determine their homebuying criteria, then compare and reconcile these criteria as a team.
Property Research and Selection: Using Zillow or Redfin, each student will identify two homes within the budget, allowing each team to have at least four options.
Evaluation Using Definitive Choice App: Teams will use the "New Home (Fulcrum)" template in the Definitive Choice app to document their decision process, entering their findings and scores for each criterion.
Final Decision: The team works together to reach a consensus, either reconciling differences in scoring or averaging scores if they cannot agree. They’ll use GenAI (Oliver) to assist in defining criteria and analyzing options.
Student Presentations and Panelist Feedback
Students present their findings in a PowerPoint or similar format, showcasing their final property choice and the rationale behind their decision. They reference all sources used and discuss the criteria and evaluations they developed during the project.
Following the presentations, panelists—who are expert Realtors—will have the opportunity to provide feedback and share insights based on their industry experience. Here are some suggested discussion points for panelists to consider:
Criteria Differences: Ask students how they balanced their criteria. Did they encounter any challenges in aligning their individual preferences with their partner’s?
Market Evaluation: Ask how the students decided between “work from anywhere” considerations to purchase in a lower cost market and “work in the office” benefits associated with higher cost markets.
Property Evaluation: Inquire about how they scored each property. Were there certain factors, such as neighborhood amenities or future resale value, that they found challenging to assess?
Market Insights: Share your experience on what makes a good investment in today’s market. How can students balance personal preferences with long-term investment considerations?
Information Sources: Discuss the role of information sources like Zillow in real estate decisions. Are there additional sources they could have used, and what kind of information might be missing from online listings? How does a good realtor help buyers gather information NOT easily available.
Panelist feedback is instrumental in helping students refine their understanding of real estate and personal finance. We look forward to an engaging discussion that bridges classroom theory with practical, real-world insights.
Great simulation. Good you have realtors involved.