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Abstract
Multiple regression analysis
(MRA) has proven to be a useful
tool to predict selling prices in a
mass appraisal context. The
significance of determinative value
elements – identified by more
conventional methods such as sale
verification or pairings – can
objectively be confirmed or
rejected by the practicing appraiser
employing MRA. This is
demonstrated with the analysis of a
small set of sales of rural lots in
southeast Alaska.
This article aims to:
• Demonstrate the strength of
MRA to explain rather than
to predict selling price or value
of real estate in dynamic
markets;
• Encourage an increased use of
regression techniques properly
applied by those who are
familiar with MRA but do
not routinely use statistical
methods; and
• Show the usefulness of MRA
in supporting area market
trends, in the selection of
comparable sales and in the
application of qualitative
adjustments for difficult-toquantify
property attributes in
specific appraisal assignments.