Real Estate Home Pricing: Hedonic model variables and Community Amenities Roles
Keywords:Real Estate asking prices, Hedonic modeling, Regression, ANOVA
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.
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