Real Estate Home Pricing: Hedonic model variables and Community Amenities Roles

  • Tim Dorr University of Bridgeport
Keywords: Real Estate asking prices, Hedonic modeling, Regression, ANOVA

Abstract

Forecasting a home sale asking price using traditional hedonic pricing models is problematic: buyers have lost confidence in the marketΓÇÖs response to such forecasted asking prices. With the restriction of federal and state funding sources for community services home buyers may face increased property taxes depending on the community they select. In turn this may affect the prices and neighborhoods that they search in. This study examines whether hedonic model variables remain viable for sales price forecasting and whether the level of available community services affects town selection decisions for home buyers. All data was developed from databases in the public domain. The study focuses on an examination of variance as measured within a linear regression model.

Author Biography

Tim Dorr, University of Bridgeport

I joined the University of Bridgeport as a full time visiting professor in the fall of 2013. I am currently a senior lecturer at the business school. My areas of interest include data analytics, applied statistics, operations, ethics, critical thinking, and management. I recently published my first academic article which focused on the application of a 3rd degree polynomial regression model as used in a residential real estate market.

References

Borsboom, D. (2008, February). Latent variable theory. Measurement, 6(1/2), 25-53. http://dx.doi.org/10.1080/15366360802035497

Dorr, T. G. (2015). My homeΓÇÖs market value: An active market pricing model. Journal of Management and Innovation, 1. Retrieved from http://jmi.mercy.edu

Frost, J. [The Minitab Blog]. (2015, September 3). The danger of overfitting regression models [Blog post]. Retrieved from http://blog.minitab.com

Listingbook Website. (n.d.). http://www.listingbook.com/home/

National Association of Realtors. (2014). Profile of home buyers and sellers. Retrieved from http://www.realtor.org/

United States Census Bureau. (2010). Housing Vacancies and Homeownership (CPS/HVS). Washington, DC: Government Printing Office.

Published
2016-10-14
Section
Articles