From the course: Business Math
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Identifying key variables: What is the value of your neighbor's house?
From the course: Business Math
Identifying key variables: What is the value of your neighbor's house?
- So, how much is your house worth? Or, perhaps a more tantalizing question, how much is your neighbor's house worth? Let's address this question using something called price multiples. This multiples approach takes advantage of the vast amount of information embedded in market prices. Let me give you an example using a house that is near and dear to the heart of my brother Jim and me, the house in which we grew up. The website zillow.com is an online real estate database company. The Zillow site contains price estimates for millions of residential houses in the United States. In fact, I think that the Zillow site has estimated values for about 60% of the houses in the United States. Now, how is it possible for Zillow to have all of these estimates? Does Zillow employ thousands of real estate appraisers who go around the country and appraise houses? No, these Zillow estimates, which are called Zestimates, are generated using price multiples based on public data for recent house sales…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.
Contents
-
-
-
-
-
-
-
(Locked)
Numerical estimation: How many windshield wiper blades are sold in Salt Lake City each year?4m
-
(Locked)
Calibrate uncertainty: What is the wingspan of a 747?5m 22s
-
(Locked)
Identifying key variables: What is the value of your neighbor's house?6m 9s
-
(Locked)
What would it cost to construct a custom-made oak table?5m 34s
-
(Locked)
-