You are applying the following hedonic pricing approach to assess the market val

Question

You are applying the following hedonic pricing approach to assess the market value of a property. PRICE per sq ft = CONSTANT + b1* AREA + b2*TENNIS COURT + b3*AGE + b4*SCHOOL. Determine the market value of a subject property with the following characteristics: 1,800 square feet, a nearby tennis court, 2 years of age, and off the school district. 18. You are applying the following hedonic pricing approach to assess the market value of a property PRICE per sq ft = CONSTANT + b1* AREA + b2*TENNIS COURT + b3*AGE + b4*SCHOOL Variable Constant Estimates Statistic 2 20 2.12 1915 0.12 3.20 -110 4.21 The estimates are in terms of price per square foot. Determine the market value of a subject property with the following characteristics: 1,800 square feet, a nearby tennis court, 2 years of age, and off the school district. a) $3, 766,200 b) $3, 948,200 c) $4,011,200 d) $4,039,200 e) $4, 075,200

Explanation / Answer

Price per sq ft = 1915 + 0.12 x 1,800 + 333 x 1 - 110 x 2 + 20 x 0 = $2,244

Market Value of subject Property = Price per sq ft x Sq ft = 2,244 x 1,800 = $4,039,200

Hence, d is the correct answer.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.