Sale price classification models for real estate appraisal
DOI:
https://doi.org/10.7764/RDLC.20.3.440Keywords:
sales price function, discriminant analysis, classification, real estate appraisalAbstract
This study aims to determine the parameters that are effective on sale prices and to obtain the functions that determine the appropriate sale price ranges of real estates. In this context, a total of 138 real estates, which are located in Bayraklı district of Izmir, Turkey and that were for sale between April and June 2019, were investigated. The effects of 17 parameters on the sale price of the real estates were examined through statistical analysis. Thirteen parameters that have been determined to be effective have been used in developing the distinctive functions that decide the sale price ranges of real estates. The results show that parameters such as real estate’s area, age, furniture status, central heating system, playground, pool and gym are statistically significant on the sale price of the real estates. In addition, the functions obtained by using these parameters classified 78.3% of real estate sale prices in the correct range.
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