gm 533PROJECT - PROJECT: Analysis on Housing Prices...

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PROJECT: Analysis on Housing Prices Background Story: As you know Guys that we are interested in selling our current home in Eastville, Oregon. Due to bad economy , There is decline in housing market in these days. It can be very difficult to estimate the price of a house. The most important factor to consider when selling a home is to know how much the house is worth so that you can make your desired profit and, to determine the value of a house without relying on Realtors can be even more difficult. We do not want to overprice our house due to the fact that it might lose its appeal after two to three weeks of showings because it was too expensive. On the other hand, if we price our house too low, we might end up not making a profit at all, but our house will most likely sell much quicker. However, with the help of the internet, there are many house price indexes out there that could help us obtain the latest information not only on property prices, but the different patterns and trends of the housing market as well. The only problem with this is that there are so many different guides with different information that it makes it much more difficult to know which one you can trust to be accurate. Throughout our research, we have encountered many problems with predicting house prices. We have found that none of the houses first I looked at were priced the same, even if they were identical. For example, the two houses that I found were identical to each other, but the selling price was different from one another. This could be due to numerous reasons. One reason could be due to the location or condition of the property; one house might be more run down than the other. Other reasons could be due to extensions added onto the house, the landscaping done around the house, or remodeling done to the interior of the house. Even houses on the same street in the exact same condition could sell for different prices. This could be due to the property valuations that vary from one real estate agent to the other or the “behind the scenes” negotiations that go on between the buyer and seller concerning the price of the house. So, there is really no easy or quick way to determine the price of a house.
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Sometime it happens like this Figure: 1,000 square feet - $75,000. 1,000 square feet - $75,000? Purpose The purpose of our research is to find a model or equation that best predicts the selling price of a house. We believe that any development(s) in predicting house prices would be of great value and use to anyone involved in the housing industry as well as home owners and buyers. Although the focus of this research is on predicting the selling price of a house in Eastville, Oregon, the method outlined in this report could also be feasible for other parts of the United States as well as other countries. Data
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This note was uploaded on 07/28/2011 for the course GM 591 taught by Professor Jimlot during the Spring '09 term at Keller Graduate School of Management.

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gm 533PROJECT - PROJECT: Analysis on Housing Prices...

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