What is regression in real estate?
Regression is a mathematical tool used by real estate appraisers to determine the likely value, or adjustment rates, of various property characteristics and ultimately predict sale prices.
Why is model appraisal important in multiple regression analysis?
Definition: Multiple Regression Analysis (MRA) looks at the relationship between variables to PREDICT something. In appraisal it’s useful in predicting many things: property’s sales price, rent value, physical depreciation etc.
What are the three types of multiple regression Analyses?
There are several types of multiple regression analyses (e.g. standard, hierarchical, setwise, stepwise) only two of which will be presented here (standard and stepwise).