Key Takeaways
- Hedonic pricing models decompose prices into marginal feature contributions with statistical precision.
- R² > 0.80 and CV < 15% are quality benchmarks for regression-based valuation models.
- Confidence intervals communicate the precision of value estimates to decision-makers.
- Minimum 30 sales are needed for regression; 50-100+ provide more reliable multi-variable models.
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Test Your Knowledge
1.In Statistical Methods in Comp Analysis, what determines the reliability of a comparable sale?
2.What is the maximum recommended net adjustment for a single comparable sale?
3.How should the final value be determined from multiple adjusted comparable sales?