My name is Ozan and I have got a problem. My wife, Amy, wants to sell our house! .
She wants to get as many offers as possible, so she does not want to set the asking price of the house too high since that would result in fewer people considering the property. But I told her that we do not want to set the asking price too low, which would lead us to sell the property at a low price leaving us without cash to buy another one. .
Of course, she wants me to do all the work. She asked me .
to place an asking price which is neither too low nor too high.
to appraise the selling price of our house .
and to forecast the possible discount we will have to give to the buyer.
I went to my realtor friend John, in order to have him give me an idea about where to price my house. Since he went out of business ten years ago, he could not help me very much. The only thing I got from him was a ten-year old folder with old houses' data. .
After having looked at this data, I remembered that I was taking your Statistics class at the University of Texas at Dallas. I remembered dimly that we did multiple regressions and could set up predictive models with that. Maybe this was the perfect way to determine an asking price, forecast the selling price and the potential discount we will have to give to the buyers. .
I told my wife about it. I told her that I needed a few attributes of a house, which she thinks are very important for determining a house price. .
"Size of a Garage-, "Square Footage-, "Time on Market-, "Number of Rooms-, "Number of Fireplaces-, "Number of Bathrooms-, "Heating System- and the "City- were attributes she thought would determine a house's price. I must admit that I did not agree completely with those attributes but you know who always has the final say at home. I was at least allowed to supplement "Average Room Size- to the list since I think this is an attribute, which really could determine price.