Part I: The Simulation
Begin in the YEAR 1 row. Roll a 6-sided die, or use a random number generator limited from 1 to 6 (here: Roll a Die, here: Random, or elsewhere)
As you go through the steps in YEAR 1, record the values you are working with under the TRACKING section toward the bottom of the spreadsheet. For example:
Start in YEAR 1, Step 1. Let’s say you roll the die and get a 3. That means you have $20,000 in cash saved for a down payment for a house. Record that value in the TRACKING area, next to the row recording “YEAR 1” under the “Total Cash (savings)” column.
Then go to Step 2, and roll the die to find the average market value (the cost of the house you will try to purchase), and then write that value in the TRACKING area under step 2. So, if you rolled a 4 this time, you’d type “$400,000” into the Step 2 box in TRACKING, still in YEAR 1.
Go on from there and do the same thing in each column until you get to a choice where you choose (or are forced) to return to the beginning “HOUSE HUNTING,” except this time you follow the rows that say “YEAR 2+” and do what they instruct you. Each time you start your house hunting over again, you go back to YEAR 2+ and follow those directions. You start with the cash you already have, roll the die and, for example, you get roll a 2 this time. This means you would ADD that 2 value ($10,000) to the original Step 1 cash value you had (for example, $20,000) and you’d write that total ($30,000) in the YEAR 2 row in the TRACKING area.
Proceed from step to step until you manage to buy a home. You must have enough cash savings to pay for the down payment and closing costs, as well as any repair bills from the Home Inspection Report (covering the total purchase cost) or you have to start HOUSE HUNTING over again (in the next year). You must also have enough monthly income to cover the mortgage costs, or the sale will also fall through and you’ll have to start again.
Part II: The Analysis
Once you’ve run through the home-buying process a few times and managed to actually buy a home, write the story of your experience. What helped? What setbacks did you face? What freak problems appeared?
Follow up by analyzing this process more generally in a second paragraph, addressing other things you noticed. What surprised you? Was it difficult to get through to actually buy the home? What did you learn about homebuying from this? What’s your plan for purchasing a home? Do you have to buy a home?
