Residential property assessment
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The changing nature of residential housing markets is due to the influences by a large number of factors, some of which have significant effect on house values. While it is extremely difficult to completely disaggregate all influencing factors, it is possible to highlight some factors. Most of the factors can be classified into two categories: internal factors and external factors. Internal factors include the characteristics of the residential property, such as size, year built, location, and style of the houses, which cannot change; while external factors may include the inflationary index, such as economic industry, and agriculture, which change from year to year. The aim of this study is to model the distribution of the sale price using linear regression. In this paper, the five variable representing (1) square footage living area, (2) year of sale, (3) building style, (4) year built, and (5) neighborhood of the house are considered. Among these factors, external factors are represented by variable "year of sale", and the other four variables represent the internal factors. The research investigates the links between the sale price and the above factors of all residential houses sold between January 2000 and September 2005 in the Town of Amherst, Buffalo, NY Two linear models are detailed studied in this paper.