Real Estate Home Pricing: Hedonic model variables and Community Amenities Roles
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.
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.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).