The Research Problem
The current housing market offers little good news. With the downturn in the housing market, homeowners are being forced to discount the asking price of their homes and sacrifice profits. Since homeowners are unable to sell, foreclosures are at an all time high. Many find themselves in circumstances such as various life events as divorce, death or job transfers and are forced to keep their house on the market until they can receive the listing price. Some homeowners that carry a current balance on their mortgage need to sell at a certain price in order to pay off existing mortgages. What factors contribute to the price that a homeowner eventually gains from the sale of their home?
Why the Research Problem is Important
Analysts are stating that in a housing depression. Many housing prices are down in a great many regions across the US and it’s worthwhile for realtors and investors to gain as much knowledge of a specific property in order to “secure a property for the best deal” (Glazowski, 2008). A good realtor knows the market and specializes in certain areas of a city. If a realtor is experienced in a certain area and has the knowledge of the market, a Seller can gain the best value for their home. Research in this area is important to find out why the market is down and what sellers and buyers can do to get the value of their money. Purchasing a house is one of the biggest investments that people make and getting the best deal for one’s money is important. On the other hand, selling a house in this market can be a detriment to some people and can leave some in debt. That is why is important to research and observe the housing market to determine when is a good time to buy and a good time to sell.
The real estate data set provided comparables of houses that were sold in a particular city. The data provided included the price the house sold, number of bedrooms, square footage, pool, the distance to town, township, garage and...