Executive Summary

This report has been designed in order to present the main elements of the sale of the house project.  With regard to the rising complexities thereof, the opinion of the scholars and the contemporary state of the reals estate transactions practice have been equally addressed in this report.   The aim of this executive summary is to outline the main elements of the project implementation, to highlight the peculiarities of the project, to identify the potential feeble points of the implementation thereof and to elucidate the general strategy of the project goals accomplishment. 

The   first chapter of the report has been compiled to present a network schedule for the project and the advocacy of the arrow diagram method and the diagram, elucidating the sequence of the necessary actions itself.  The accent is made on the typical characteristics of the real estate transaction projects and the choice of the network schedule type has been duly substantiated.  The second part of the paper presents a forward path analytical process and the identification of the critical path point and total float value. The next section of the report analyzed the obtained total float values with use of the Program Evaluation Review technique, one of the most universally recognized performance monitoring tools.

The fourth element of the report briefly discusses the RACI matrix and justifies the reasoning made here .  This part of the paper is followed by the analysis of the Project Management Body of Knowledge currently available empirical data which can be deemed relevant for the needs of this project.  Finally, with regard to the PMBOK analysis, the timeframes of the project are identified.

Network Schedule of the Project

With regard to the consequential nature of this project (in other words, it shall be highlighted that the stages can’t be done separately, one stage can be executed on condition that the preceding one has been carried out successfully). The sections involving the successful realization of this project involve the house choice stage, repair-mending or other relevant pre-sale preparatory operations. The next action is the appraisement of the subject matter of the future transaction. The price of the house offered for sale is independently determined and adjusted to the current market situation. The next step of the project involves extensive market survey operations and other relevant activities designed to identify the prospective customers of the traded house.

Overall, the following stages are to be followed in network schedule of the present project:

  1. The Identification of the Object of the Sale

Assuming the fact that that a vast majority of the lucrative propositions in the real estate sector are currently available on the market, proper choices shall be made to meet the particularities of this project.  Analytical approach clearly suggests that the most demanded house opportunities can be identified in the big, developing cities. New York or San Francisco is deemed to be one of the most lucrative research points for the realization of this project.

This operation is expected to take no longer than 1 week ( 6 working days), since these timeframes really seem to be sufficient to achieve the required goal.

  1. The Purchase of the Object of the Sale on the Agreeable Conditions

Since the ultimate objective of the project is to accrue revenues, one of the most essential elements is the identification of the proper price. Therefore, the identified available propositions shall fully match the price which is majorly dictated by the profitability aspect of the transaction. The strategies which can be used to urge the potential customer to enter into the transaction shall be carefully analyzed and put into implementation. This stage is estimated to fully completed within one working day

  1. Pre-Sale Preparation and Design of the Object of the Sale

Provided that the house is purchased, specific actions are to be done by the firm managers in order to make the house as lucrative as possible for the ultimate purchasers.  This stage is predominantly dependent on the successful implementation of the first stage of the project. The activity may involve the architecture, engineering, reconstruction and designing operations. The timeframes for this stage can only be assumed with considerable uncertainty, due to the fact that before the house is purchased, the proper evaluation operations can’t be carried out.

Approximately, the stage is expected to be fully completed within 20 working days.

  1. Appraisement of the House

With the completion of the previous stage, the evaluation stage comes. This stage involves the appraisement of the house by the group of independent analysts to remove any bias or other external influence.  The estimation of the price includes the careful analysis of the microeconomic constituents including the fees paid to the staff implicated in the implementation of the project and the costs spent to the pre-sale preparation and marketing campaign. With regard to the marking campaign costs, it shall be stressed that these costs can be included, only after the campaign is conducted, therefore this operation will be done subsequently.  

  1. The Marketing Research and Choice of the Customer

The identification of the most profitable sale opportunity is impossible without extensive and profound research of the market. Provided that this analysis is effectively conducted, the proper customer can be identified. Provided that the house for sale can be sought for by the potential occupants from other areas of America, not only the zones of house location are to be monitored,  but the rest of the areas in where the prospective buyers can dwell or reside shall be  monitored meticulously.

This stage is estimated to be conducted within no more than five working days, since this period is ubiquitously considered as the most appropriate one both by the scholarly community and  by the practicing real estate agents as well.

  1. The Conclusion of the Agreement and Money Transfer

Indisputably one of the most complicated projects is ultimately finalized   with the transaction stage. Under this stage the ownership rights are given to the buyer and the purchaser receives the consideration for the subject matter of the contract. The operation is estimated to be conducted within one working day, unless unforeseen circumstances of great importance do not arise.

Forward Path, Critical Path and Total Float Identification

Forward path is the technique which is utilized in the project management sphere and which enables the project manager to identify the overall duration of the activity. While this task is executed several important assumptions shall be taken into consideration with regard to the peculiarities of the present case.

First and foremost, the project is strictly consecutive in its nature. The subsequent stage can´t be carried out unless the precursory one has been completed successfully.

Secondly, the stages of the project are mutually interconnected. In other words, successful implementation of the next stage is in direct causation with the preceding one. Or to be more exact, if the first stage is not completed successfully and with 100% accuracy, the efficacy of the next stage is greatly imperiled. Therefore, the delivery of the entire project can be on the verge of collapse as well.

Provided that the time periods of the separately conducted cannot overlap each other, as they are conducted successively, the forward path strategy indicates that the implementation of the entire project necessitate 34 days of the available time resources. If one stage is prolonged for a definite number of time units, the delivery of the entire project is shifted as well (Burke, 1999).

Total Float of the Project

Total float is considered by the scholarly and the practitioners’ communities as one of the most important project management variables (Maylor, 1996). This figure indicates the delay which is allowable under the existing circumstances of the project and which does not cause a delay of the project delivery in the long run.

The delivery date of the overall project is 40 days, so each stage can be shifted on no more than 2 days to ensure that the entire project is completed within the designated timeframes. Alternatively, one stage may be shifted on more than two days but on the expense of another stage, which in this situation cannot be delayed, since the resource of delays will have been totally exhausted.

Critical Path

The critical path procedure indicates the list of activities that are to be completed, the time for their implementation and the interrelation between them ( Hobbs, 2009).

With the regard of the method of identification of the critical path, the most pertinent seems to be the one proposed by the United States Navy General Staff. The method is known as a Program Evaluation and Review Technique.  The main postulates of this program is that all stages are constantly independently reviewed and monitored by the authorized supervisory staff of the company,  or of the organization.

The following table provides the list of activities and their approximate duration. As stated in the previous sections of this report, the project is sequential and the fulfillment of each subsequent stage directly depends from the implementation of the previous one.

Object of Sale Identification

1 working day

Purchase of the object of Sale on the Agreeable terms

1 working day

Pre-Sale Preparation

20 working days (est.)

Appraisement of the Object of Sale

1 working day

Marketing Research and Identification of the Client

5 working days (est.)

Agreement Conclusion and Money Transfer

1 working day (est.)

Overall, it is indicated that the overall delivery of the project is not expected to exceed 31 working days, on condition that all the stages are timely fulfilled. As discussed in the previous paragraphs of this report, the time resources for the project implementation are 40 days, therefore the timeframes do seem to be suitable.

RACI Matrix of the Project

RACI abbreviation can be deciphered as Responsible, Accountable, Consulted and Informed( Burke, 1999) and signifies what key roles in the project fulfillment will be exercised by whom.

Responsible

The person who bears ultimate responsibility for the project delivery. In this case that is the team leader of the sellers group

Accountable

The category of specialists who evaluate the performance demonstrated by the responsible group. In this case these functions are done by the supervisors.

Consulted

The professional experts whose opinions are highly considered. In this case, these functions are done by those, who have expert knowledge in the field of real estate transactions

Informed

The group which is informed when the task is completed. In this very case those, who assigned the task to sell the house.

PMBOK Practices

Before any contemporary real estate-related business project is underway, it is desirable to get consulted with the Project Management Body of Knowledge Guide.   In this particular case the study was researched in order to identify the most optimal timeframes determined by the practice.  Having got researched the database in question, it becomes evident that with consideration to the particularities of the present transaction, the most relevant and markedly justified time period is 50 days (Deasun, 2011). Therefore, the timeframes determined for this project are fully consistent with the PMBOK practices.

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