Real Estate Research Process
RES 341 / Research and Evaluation 1
March 28, 2011
Professor
Real Estate Research Process
Introduction
Every individual whether they are aware of it or not, base their decision-making on some form of statistical data. Simple everyday decisions are made through rationalizing a problem or opportunity, forming a hypothesis, analyzing information, and determining a decision based on the gathered information. For the purpose of practicality, Team A has chosen real estate market data gathered from the website for the Statistical Techniques in Business and Economics (2008) textbook to formulate and define a chosen problem, attempt to delineate the purpose of the research into the variables that affect
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In the case of the real estate data, the variables are the price, size, and the number of bedrooms in a residence. These variables have physical measurements that can be easily verified.
Measurement Scale for Each Variable Accordingly, to test the hypothesis, the variables that will be analyzed will be the selling price of the house, the square-footage size of the house, and the number of bedrooms of the house. These are the intervals encompassed in Team A’s hypothesis. However, Team A will also measure other variables connected to outcomes not stated in the hypothesis, such location (for instance distance and time from house to center of town) and desirable amenities. To test the above-mentioned variables Team A will need to select specific measurement scales for them. The four types of measurement scales are nominal, ordinal, interval, and ratio. The depth of sophistication increases as one moves from the nominal scale to the ratio scale. In other words, the ratio and the interval scales offer more detailed information on variables than do the ordinal and the nominal scales. That is to say, as one moves from the nominal scale to the ratio scale, one moves from the general to the more specific, and the more specific information a scale yields, the more powerful it is. The more powerful scales, provide the possibility of performing in-depth, meaningful analysis so that more
The real estate division was estimated to have a fair value of $13,890,000. This was determined by totaling the number of lots expected to sell within the next four years and multiplying it by the price per lot of $180,000. After determining total lot sales, a 20% discount rate was applied as suggested by current market conditions. Given the unique nature of the real estate development, it is not believed that there are any comparable developments to find a market multiple.
We estimate with a 95% certainty that the mean will be included in a 112 sample size. As well, management requested a sales mean estimate for the No Gulf view category with an allowed standard error of $15,000. We estimate with 95% certainty that the No Gulf view condominiums will have a mean with in 32 samples.
The types of dimensional measurements that can be employed y researched include tests, indexes and sets. Scaling, for instance, is used to determine non-concrete concepts such as attitude, personal feelings towards certain services or degree of satisfaction; while indexes and tests are primarily used to make assessment on people’s behavior on various qualitative and metrics processes. For example, the number of people infected with HIV/AIDs in a hospital in a given ward is considered as an index.
The first chart option A utilizes the raw data for investing in a real estate development and option
Gulf Real Estate Properties, Inc., a company that specialized in condominium sales in southwest Florida, provided a sample date set on two types of condominium: 40 of Gulf View; those located directly on the Gulf of Mexico, and 18 of No Gulf View; those located near but not on the Gulf. In order to provide in depth statistically analysis, this paper will summarize descriptive statistics from the company 's sample data, and discuss its results. The paper also calculates confidence interval estimates of the population mean sales prices and days to sell, estimate margin of errors, and determine the sample size based on given values.
b) The same article reported the mean size was more than 2100 square feet? Can we conclude that the mean size of homes sold in the Gulshan area is more than 2100 square feet? Use the 0.05 significance level. What is the
The data for the second test to be conducted by our group consists of lot sizes of the residential properties that are up for sale in Toronto and Vancouver. The samples are represented in m2 (metres squared; area of the land in which the residential properties are built on). The data taken are based on the properties that are up for
Measurement in Analysis can take on many forms, but in this case, these come in the form of questionnaires. A questionnaire when not done correctly may not be able to obtain the information in which the corporation may be seeking. There are in general four categories that these fall into. Categorically, these include Nominal, Ordinal, Interval and Ratio Numbers. The essential goal of this author is to explain to the utmost of authority of how these fit into questionnaires.
Real estate is defined by the Barron’s Dictionary of Real Estate Terms as the “land and everything more or less attached to it. Ownership below to the center of the earth and above to the heavens.” This definition clearly conveys the geographically fixed nature of real estate and the inherent risk associated with this characteristic that is not found in other financial assets such as stocks and bonds. It is the identification and quantification of these risks that dominates the real estate decision. Regardless of whether a large insurance company is determining if it will insure a “trophy” office property in New York City or Starbucks debating the
The purpose of this new model will be to more accurately determine which characteristic of a home effect the sale price in Springfield so an accurate listing price can be estimated. Failure to generate an appropriate listing price on the part of a real estate agency can lead to many negative effects. A house that is priced too highly may not sell, while one that is priced too cheaply may sell quickly, but cause the seller to take a loss and provide lower commissions. As a result, the considered model must be able to consistently predict accurate list prices. To ensure the model is consistent technical issues such as non-linearity, heteroskedasticity, and multicollinearity must be considered so that the assumptions of a multiple linear regression model are not
I am considering selling my house and need some data to support the price. I will gather data about homes that have sold within the last two years or are currently listed in my neighborhood such as their list price, square footage, number of bedrooms, outdoor amenities such as a pool or kitchen, and, if sold, how much and what was the variance between list price and actual sale price. The analysis of this data will allow me to make an informed decision on what to list my home for and even what time of year to list it.
The most common reason for doing scaling is for scoring purposes. When a participant gives their responses to a set of items, we often would like to assign a single number that represents that's person's overall attitude or belief.
We can use qualitative methods to assess the market, such as expert interviews, customer focus groups, case studies, macro and micro industry data, as well as a wealth of other data sources (e.g., blog, social media chatter develop these potential standard list). From these, we can buy property; we believe the impact of the choice of consumers to develop a list. For