Page 5 - Regression Guideline for AMC
P. 5
Evalua6ng Mul6ple Regression Model FiRng Real Estate Appraising
• One caveat: Fully evalua6ng model “fit” in regression analysis is complicated. It requires access to advanced sta6s6cal and graphical tools as well as to the original data on which the model was based. Given none of those things will be available or feasible to use in the context of appraising/underwri6ng, this presenta6on will focus on the most expedient though s6ll highly useful measures of model fit that should be readily available and interpretable to the underwriter/appraiser. The metrics of model fit highlighted should be available for review when regression modeling was used to es6mate a property’s value.
• At different points along the way, we will suggest key ques6ons that an appraiser/underwriter should be asking about how the regression analysis was done to help determine the likely accuracy/usefulness of the predicted value.
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