Method and system for estimating the value of real estate
One aspect of the invention is a method for estimating a particular home's value. An equation is created using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes. The plurality of homes may comprise a statistically significant number of homes. The equation is used to estimate the particular home's value.
1 . A method for estimating a particular home's value comprising:
creating an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of homes comprises a statistically significant number of homes;
using the equation to estimate the particular home's value.
2 . The method of claim 1:
wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;
wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home's estimated value as determined by the most recent iteration of the regression.
3 . The method of claim 1:
wherein the plurality of data types includes a builder identification.
4 . The method of claim 3:
wherein the plurality of data types includes a builder rating.
5 . The method of claim 1:
wherein the plurality of data types includes a distance from the particular home.
6 . The method of claim 1:
wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.
7 . The method of claim 1:
wherein the plurality of data types includes an identification of at least one type of home upgrade.
8 . The method of claim 4:
wherein the plurality of data types includes an identification of at least one type of home upgrade.
9 . The method of claim 1:
wherein each of the plurality of homes comprises a dwelling type selected from the group comprising: single-family house, townhouse, apartment, duplex, houseboat, and condominium.
10 . A method for estimating a particular home's value comprising:
creating an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of data types includes a builder identification;
using the equation to estimate the particular home's value.
11 . The method of claim 10:
wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;
wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home's estimated value as determined by the most recent iteration of the regression.
12 . The method of claim 10:
wherein the plurality of data types includes a builder rating.
13 . The method of claim 10:
wherein the plurality of data types includes a distance from the particular home.
14 . The method of claim 10:
wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.
15 . The method of claim 10:
wherein the plurality of data types includes an identification of at least one type of home upgrade.
16 . The method of claim 12:
wherein the plurality of data types includes an identification of at least one type of home upgrade.
17 . The method of claim 10:
wherein each of the plurality of homes comprises a dwelling type selected from the group comprising: single-family house, townhouse, apartment, duplex, houseboat, and condominium.
18 . A system for estimating a particular home's value comprising:
a computer readable storage medium;
computer software stored on the storage medium and operable to:
create an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of homes comprises a statistically significant number of homes, and
use the equation to estimate the particular home's value.
19 . The system of claim 18:
wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;
wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home's estimated value as determined by the most recent iteration of the regression.
20 . The system of claim 18:
wherein the plurality of data types includes a builder identification.
21 . The system of claim 20:
wherein the plurality of data types includes a builder rating.
22 . The system of claim 18:
wherein the plurality of data types includes a distance from the particular home.
23 . The system of claim 18:
wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.
24 . The system of claim 18:
wherein the plurality of data types includes an identification of at least one type of home upgrade.