House Value Estimation Research Paper Example | Topics and Well Written Essays - 2000 words

House Value Estimation - Research Paper Example The assessment of the price of a house is generally assessed through the few apparent factors like the construction value, design, and location of the house. The rough estimation usually does not encompass the related factors that are important to decide the value of a house and have a significant impact on the assessment process. The study of the factors other than the common factors is important to identify their role in the determination of the price or value of a home. Generally, a realtor’s claim would always be that the location is the most important factor when it comes to determining the value of a house or home. The formulation of a model in this regard is attempted through ‘regression’. For concrete assessment of this claim, some elaborated factors are included in this exercise. A home or a house can generally be viewed in terms of the properties it holds internally and the characteristics of the environment outside that home. The null hypothesis here wo uld be the realtor’s claim i.e. the location is the most important factor in assessing the house value whereas the alternate hypothesis refutes by stating that this is not the only factor but there are other significantly effective factors that are needed to be taken into account. There are a number of processes that can be used to predict house values. These include various probabilistic methods. Multivariate Spatial Method, Time Series analysis, FootyForecast Forecasting methods( a method that is similar to simple sequence method).