The most accurate method to derive adjustments applied to comparable sales is to perform a multiple linear regression on a large body of sales. The question then becomes "How can I use the equation to adjust my comparable sales?" Well, it took me some time to figure this out but here's a spreadsheet that does just that. Here's a link to a page on … [Read more...]
Using Multiple Linear Regression to Appraise Real Estate
Those of you who took statistics in college probably remember the class with varying degrees of fondness. Personally, I loved my statistics class. I realized at the time that multiple linear regression was the perfect tool to quantify the effect of various property characteristics on the overall value. The theory of statistics is the mathematical … [Read more...]
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