
Tamara's New House (A)
Eades, Kenneth M.,...
Tamara's New House (A)
Eades, Kenneth M.; Fairchild, Gregory B.; Sinclair, Safiya
F-1886 | Published January 16, 2020 | 10 pages Case
Collection: Darden School of Business
Product Details
This case and its follow-up B and C cases simulate a quintessential part of the “American dream”: buying and financing a first house. For most people, buying a house is the largest purchase they will experience in their lifetime. The process has both legal and economic components, and often requires that the buyer rely heavily upon a Realtor to navigate all the technicalities. Along the way, the buyer may experience an emotional roller coaster with both the excitement of becoming a homeowner and the worry that comes with making a large financial commitment. Much of the worry comes from a lack of understanding, particularly when we buy that first house without any experience with such a transaction. The primary objective of these cases is to provide the key information needed to understand what is involved with the purchase and financing of a house, and to simulate the process as the students experience the cases in sequence over several class periods. This case is designed to teach students how to choose an affordable home, and how to evaluate the financing alternatives for purchasing the home. It should motivate a discussion about want versus need and allow students to explore their own personal excitement about the prospect of living on their own in their first house.
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