Hedonic model of house pricing based on customer analysis

2014 ◽  
Keyword(s):  
Hedonic Model ◽  
Customer Analysis

scholarly journals Residential Property Behavior Forecasting in the Metropolitan City of Milan: Socio-Economic Characteristics as Drivers of Residential Market Value Trends

2021 ◽  
Vol 13 (7) ◽  
pp. 3612
Author(s):  
Marzia Morena ◽  
Genny Cia ◽  
Liala Baiardi ◽  
Juan Sebastián Rodríguez Rojas
Keyword(s):  
Hedonic Model ◽  
Hedonic Price ◽  
Analysis Model ◽  
Property Market ◽  
Property Development ◽  
Price Performance ◽  
Real Estate Investments ◽  
Residential Properties ◽  
Asset Class ◽  
Residential Market

The phenomenon of urbanization of cities has been the subject of numerous studies and evaluation protocols proposing to analyze the degree of economic and social sustainability of development projects. Through careful research and synthesis of the theoretical framework regarding residential properties’ performance measurement and forecasting, this paper goes deeper into the proposition of property development as an asset class that represents the biggest share of the Italian property market and yet is avoided by the big portfolios. The analysis model was applied to the city of Milan and its Metropolitan Area. The method is based on the development of correlation indices to evaluate different behaviors, through time and a Geographic Information System (GIS) based on the Hedonic Price Method (HPM). Results from a hedonic model estimated for several recent years suggest that, depending on the particular view, the relation between the rent/price performance and the different external and intrinsic variables can represent a useful parameter for evaluating the feasibility of different real estate investments.

scholarly journals Functional Form Model Specification: An Application to Hedonic Pricing

1995 ◽  
Vol 24 (2) ◽  
pp. 166-173 ◽  
Author(s):  
Jeff E. Brown ◽  
Don E. Ethridge
Keyword(s):  
Functional Form ◽  
Hedonic Pricing ◽  
Hedonic Model ◽  
Model Specification ◽  
Estimation Accuracy ◽  
Hedonic Price ◽  
Partial Regression ◽  
Cotton Price ◽  
Residuals Analysis ◽  
Form Model

A combination of conceptual analysis and empirical analysis—partial regression and residuals analysis—was used to derive an appropriate functional form hedonic price model. These procedures are illustrated in the derivation of a functional form hedonic model for an automated, econometric daily cotton price reporting system for the Texas-Oklahoma cotton market. Following conceptualization to deduce the general shapes of relationships, the appropriate specific functional form was found by testing particular attribute transformations identified from partial regression analysis. Minimizing structural errors across attribute levels and estimation accuracy were used in determining when an appropriate functional form for both implicit and explicit prices was found.

scholarly journals Urban Structure in Troubled Times: The Evolution of Principal and Secondary Core/Periphery Gaps through the Prism of Residential Land Values

2021 ◽  
Vol 13 (10) ◽  
pp. 5722
Author(s):  
Erez Buda ◽  
Dani Broitman ◽  
Daniel Czamanski
Keyword(s):  
Urban Areas ◽  
Hedonic Model ◽  
Land Values ◽  
Test Case ◽  
Urban Structure ◽  
Residential Real Estate ◽  
Residential Land ◽  
Ideal Candidate ◽  
Modern Cities ◽  
Spatial Level

The structure of modern cities is characterized by the uneven spatial distribution of people and activities. Contrary to economic theory, it is neither evenly distributed nor entirely monocentric. The observed reality is the result of various feedbacks in the context of the interactions of attraction and repulsion. Heretofore, there is no agreement concerning the means to measuring the dimensions of these interactions, nor the framework for explaining them. We propose a simple model and an associated method for testing the interactions using residential land values. We claim that land values reflect the attractiveness of each location, including its observable and unobservable characteristics. We extract land values from prices of residences by applying a dedicated hedonic model to extensive residential real estate transaction data at a detailed spatial level. The resulting land values reflect the attractiveness of each urban location and are an ideal candidate to measure the degree of centrality or peripherality of each location. Moreover, assessment of land values over time indicates ongoing centralization and peripheralization processes. Using the urban structure of a small and highly urbanized country as a test case, this paper illustrates how the dynamics of the gap between central and peripheral urban areas can be assessed.

scholarly journals What are people saying when they report they are happy or life satisfied

2016 ◽  
Vol 32 (3) ◽  
pp. 803 ◽  
Author(s):  
Americo Baptista ◽  
Cristina Camilo ◽  
Isabel Santos ◽  
Jose De Almeida Brites ◽  
Joana Brites Rosa ◽  
...  
Keyword(s):  
Life Satisfaction ◽  
Positive Psychology ◽  
Well Being ◽  
Graphic Representation ◽  
Hedonic Model ◽  
Subjective Well Being ◽  
Hedonic Models ◽  
Single Item ◽  
Small Variance ◽  
Reversed Order

<p><span lang="EN-GB">The study of happiness was dominated with the model of subjective well-being. With the advent of positive psychology the eudaimonic and hedonic models entered the field, but major surveys continue to use single-item measures of life satisfaction or happiness. We study the associations between life satisfaction and happiness, measured single-items with a graphic representation of a ladder and a thermometer, and three models of happiness: the subjective well-being, the eudaimonic and hedonic. The results showed that subjective well-being was the main predictor of life satisfaction and hedonic model also predicted a small amount of this variable. For happiness the predictors were the same but in reversed order, the main predictor was the hedonic model and a small variance was explained by subjective well-being. Contrary to our hypothesis the eudaimonic perspective of happiness was not a predictor in none of the models. These results underline the importance of the interaction between a cognitive or appraisal perspective and the hedonic perspectives for the study of happiness.</span></p>

scholarly journals A Priori Spatial Segmentation of Commercial Property Market using Hedonic Price Modelling

2021 ◽  
Vol 29 (2) ◽  
pp. 16-28
Author(s):  
Hamza Usman ◽  
Mohd Lizam ◽  
Burhaida Burhan
Keyword(s):  
Housing Market ◽  
Market Segmentation ◽  
A Priori ◽  
Model Fit ◽  
Hedonic Model ◽  
Hedonic Price ◽  
Property Market ◽  
Commercial Property ◽  
Spatial Segmentation ◽  
Property Price

Abstract The improvement of property price modelling accuracy using property market segmentation approaches is well documented in the housing market. However, that cannot be said of the commercial property market which is adjudged to be volatile, heterogeneous and thinly traded. This study, therefore, determines if the commercial property market in Malaysia is spatially segmented into submarkets and whether accounting for the submarkets improves the accuracy of price modelling. Using a 11,460 shop-offices transaction dataset, the commercial property submarkets are delineated by using submarket binary dummies in the market-wide model and estimating a separate hedonic model for each submarket. The former method improves the model fit and reduces error by 5.6% and 6.5% respectively. The commercial property submarkets are better delineated by estimating a separate hedonic model for each submarket as it improves the model fit by about 7% and reduces models’ error by more than 10%. This study concludes that the Malaysian commercial property market is spatially segmented into submarkets. Modelling the submarkets improves the accuracy and correctness of price modelling.

scholarly journals International Real Estate Review

2006 ◽  
Vol 9 (1) ◽  
pp. 44-61
Author(s):  
Vicky L. Seiler ◽  
◽  
Michael J. Seiler ◽  
James R. Webb ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Service Quality ◽  
Decision Makers ◽  
Hedonic Model ◽  
Hedonic Models ◽  
Joint Decision ◽  
Specific Individual ◽  
First Time ◽  
Significant Linkage

This study is the first to identify whether specific individual homebuyer characteristics, such as repeat versus first- time, local versus out-of-town, individual versus joint decision-makers, and Web versus non-Web users relate to the rating of a firm’s overall service quality and whether or not the buyer will recommend the firm to others. A hedonic model reveals there is a significant linkage between repeat homebuyers and recommending the firm to others. Variations of the hedonic models are also examined. Specifically, multiple ways to measure each buyer characteristic are considered.

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