IST 461 Business Analysis

Assignment 4

Due by midnight on Sunday of the week it has been assigned.

Consider the following scenario: Childhood sweethearts, Milo and Manisha Mason, have decided to buy their first home. Since their marriage 3 years ago they have rented a studio apartment, moved to a one-bedroom apartment, leased an apartment downtown and are now ready for their first real home somewhere close to downtown Cleveland. Milo has been working as a business analyst with a large consulting firm since graduation from college and Manisha has become indispensable in her role as a project manager at a website development firm. They wanted their hard-earned money to be turned into equity rather than disappear through rent. Plus, they were fed up with unresponsive landlords who ignored their requests to have repairs done in a timely manner.

Making the decision to buy was the easy part. What comes next? Manisha felt contacting a realestate agent was a good start, so they did their research and decided to work with Carlos from Brilliant Bungalows. After meeting Milo and Manisha, Carlos asked how they intended to finance the purchase. He gave them options such as private financing, credit unions, banks, relatives, and credit cards. They decided to play it safe and visit their bank, Golden Millions, for a loan. Golden Millions reviewed their application for a loan, checked their credit scores and verified their employment. Based on their salaries, they were able to borrow up to $400,000. This gave them much flexibility.

Armed with a realtor, a promise of financing and their list of must-have features, Milo and Manisha started looking at properties in their price range and desired location. After several weeks of serious searching the houses on the Multiple Listing Services database and going to countless open houses, Carlos found the house of their dreams. It was a three-bedroom, two-bath house with 2382 square feet in the Tremont area. The listing described the house as beautiful historic charm throughout the living spaces, hardwood flooring, moldings and doors. There is an eat-in kitchen that flows into spacious dining and living rooms. They really liked this house, so they told Carlos to offer the seller $284,999, 5% less than the asking price of $299,999. Carlos contacted the sellers realter and came back with a counteroffer of $293,999, 2% less than the asking price. After much consideration, Milo and Manisha told Carlos to let the sellers real estate agent know they would accept the offer of $293,999.

Having done their homework, Milo and Manisha knew they should have the sale contingent on a house inspection. Given that the house was built in 1882, they wanted to be aware of the condition of the furnace, roof, and other parts of the infrastructure. During her lunch hour, Manisha scheduled an inspection of the new house with Top-Notch Home Inspection. The house passed with flying colors and Milo and Manisha formally agreed to buy the house. The closing date was set for September 15th .

1. (50 pts) Write a summary of business activities for purchasing a house.

a. Draw a context-level data flow diagram.

b. Draw a logical data flow diagram.