Unveiling the Secrets of Home Pricing in Devonshire

On a rainy day that confined us indoors, we conducted a comprehensive multiple regression analysis of Devonshire Community home sales data. We focused on four key home features: backyard pools, oversized garages, fireplaces, and extra full bathrooms. While controlling for the size and age of the home, we sought to unravel the impact of these amenities on home sales prices from January 2021 to January 2024.

Real estate agents often rely on comparable sales data to estimate the value of properties, a practice commonly known as the Comparative Market Analysis (CMA). Our study sheds light on how these professionals navigate the intricate process of evaluating homes by considering features that go beyond mere square footage.

The regression analysis revealed intriguing insights. Homes equipped with backyard pools saw a significant uptick in sales prices, emphasizing the appeal of outdoor amenities. Oversized garages, fireplaces, and extra bathrooms also played pivotal roles, contributing distinct values to the properties. This nuanced approach challenges the simplistic notion that square footage alone dictates a home's worth.

Moreover, our findings align with the industry practice of making adjustments for differences between comparable sales and the subject property. Real estate agents adeptly consider various factors, such as the presence or absence of these features, in order to arrive at a more accurate valuation. This analysis serves as a valuable resource for both homeowners and real estate professionals, offering a deeper understanding of the nuanced dynamics shaping home prices in Devonshire Community.