What Drives Land Prices in Your Market? The Use of Multiple Regression Analysis to Confirm the Significance of Determinative Real Estate Value Elements
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Multiple regression analysis
(MRA) has proven to be a useful
tool to predict selling prices in a
mass appraisal context. The
significance of determinative value
elements – identified by more
conventional methods such as sale
verification or pairings – can
objectively be confirmed or
rejected by the practicing appraiser
employing MRA. This is
demonstrated with the analysis of a
small set of sales of rural lots in
southeast Alaska.
This article aims to:
• Demonstrate the strength of
MRA to explain rather than
to predict selling price or value
of real estate in dynamic
markets;
• Encourage an increased use of
regression techniques properly
applied by those who are
familiar with MRA but do
not routinely use statistical
methods; and
• Show the usefulness of MRA
in supporting area market
trends, in the selection of
comparable sales and in the
application of qualitative
adjustments for difficult-toquantify
property attributes in
specific appraisal assignments.