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Nate Wilding Assignment 5

RM 450
PROPERTY TO BE APPRAISED: 833 Shamrock Avenue, State College, PA 16801
SELECTION CRITERIA:
1. State College- State College itself is a very different market from the rest of Centre
County. Its population, economy, and university presence greater alter real estate values
as opposed to other areas of the county
2. Single Family House Values shift significantly depending on the use of the property.
Multi-family or townhouse properties would not reflect comparatively.
3. <30 years old. The property is fairly new, and as so should only be compared to relatively
modern homes.
4. Residence of 1000-3000 Square Feet- The property should be close in size to any
comparable properties, as a heavy weight for valuations often considers price per square
foot.
5. Sold in Last Ten Years- Market conditions should be fairly similar to those of present day.
6. >.2 Acres in Lot Size- The property as a whole should be on a similar lot situation as the
subject property, single family residential with yard space.
7. 2+ Bedrooms- This should be a home designed for more than one person.
8. 1+ Bathroom- The property needs at least one bathroom to function as a residence and be
comparable.
Comparable Data:














Nate Wilding Assignment 5
RM 450
Multiple Regression Analysis:
A linear regression analysis was ran on the 35 comparable properties using price, square feet,
bedroom number and age as variables. All input data was from Zillows transaction history
listings. The variables were chosen because they each covered a unique aspect of a property that
would significantly differentiate it from another.












The model determined square feet to be the most significant variable, followed by age and
bedroom number. Each square foot of space increased the value of the property by an average of
$112. Each additional bedroom accounted for $2740 and every year gone by a loss of $2889.
Base value was determined to be $105,931.30.

Market Price Estimation:

Using the results of the regression, a valuation was determined after considering square footage,
age and base value. Bedroom number was eliminated due to its extremely low |t| score and
subsequent minimal significance. While base values |t| is a little low, its close to the cutoff and
Im not sure that a correlation is important to a value that wasnt directly related to a particular
comparable statistic. Combining the Coef(_cons) with Coef(sqft)*2152 and Coef(Age)*12
resulted in a valuation of $313,467 for the subject property (note that the subject property was 12
years old and 2152 square feet). Without the base value, the valuation would have been way
lower at around $207,000. With base value included, the mass appraisal estimate price is only
$2000 off of the Zillow estimate.