Page 7 - Regression Guideline for AMC
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Steps in
Tes6ng Mul6ple Regression Model in Real Estate Appraising
Regression analysis is a process that begins with selec:ng a group of proper:es on which the regression analysis will be done. The steps in the process are:
1. Selec6ng a large and varied set of proper6es in the same market as the subject property for the analysis.
2. Screening the available MLS data on the selected proper6es to make sure they are accurately recorded, do not include proper6es that are too dissimilar from the subject proper6es in terms of sales prices that are extremely high or extremely low, and insure there is not too much missing data.
3. Correc6ng inaccurate or missing data and dropping proper6es with extreme values or property characteris6cs that are inapplicable (e.g., basement square footage and finished basement square footage for proper6es in coastal areas) from the regression model as needed.
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