Method and system for estimating the value of real estate

• US 20050187778A1
• Filed: 02/20/2004
• Published: 08/25/2005
• Est. Priority Date: 02/20/2004
• Status: Abandoned Application

• Current Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Original Assignee: Hewlett-Packard Development Company, L.P. (HP Inc.)
• Inventors: Mitchell, Guy
• Application Number:
  US10/784,001
• Publication Number:
  US 20050187778A1
• Time in Patent Office: Days
• US Class Current: 705/306
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0278 Product appraisal

Abstract

One aspect of the invention is a method for estimating a particular home'"'"'s value. An equation is created using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes. The plurality of homes may comprise a statistically significant number of homes. The equation is used to estimate the particular home'"'"'s value.

Claims

1. A method for estimating a particular home'"'"'s value comprising:

creating an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of homes comprises a statistically significant number of homes;

using the equation to estimate the particular home'"'"'s value.

2. The method of claim 1:

wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;

wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home'"'"'s estimated value as determined by the most recent iteration of the regression.

3. The method of claim 1:

wherein the plurality of data types includes a builder identification.

4. The method of claim 3:

wherein the plurality of data types includes a builder rating.

5. The method of claim 1:

wherein the plurality of data types includes a distance from the particular home.

6. The method of claim 1:

wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.

7. The method of claim 1:

wherein the plurality of data types includes an identification of at least one type of home upgrade.

8. The method of claim 4:

wherein the plurality of data types includes an identification of at least one type of home upgrade.

9. The method of claim 1:

wherein each of the plurality of homes comprises a dwelling type selected from the group comprising;

single-family house, townhouse, apartment, duplex, houseboat, and condominium.

10. A method for estimating a particular home'"'"'s value comprising:

creating an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of data types includes a builder identification;

using the equation to estimate the particular home'"'"'s value.

11. The method of claim 10:

wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;

wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home'"'"'s estimated value as determined by the most recent iteration of the regression.

12. The method of claim 10:

wherein the plurality of data types includes a builder rating.

13. The method of claim 10:

wherein the plurality of data types includes a distance from the particular home.

14. The method of claim 10:

wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.

15. The method of claim 10:

wherein the plurality of data types includes an identification of at least one type of home upgrade.

16. The method of claim 12:

wherein the plurality of data types includes an identification of at least one type of home upgrade.

17. The method of claim 10:

wherein each of the plurality of homes comprises a dwelling type selected from the group comprising;

single-family house, townhouse, apartment, duplex, houseboat, and condominium.

18. A system for estimating a particular home'"'"'s value comprising:

a computer readable storage medium;

computer software stored on the storage medium and operable to;

create an equation using multiple linear regression techniques to calculate a plurality of coefficients each associated with one of a plurality of data types that is correlated with actual market prices of a plurality of homes, wherein the plurality of homes comprises a statistically significant number of homes, and

use the equation to estimate the particular home'"'"'s value.

19. The system of claim 18:

wherein creating an equation further involves iteratively performing linear regression wherein outliers are eliminated from use in creating the equation after at least one iteration;

wherein outliers comprise homes whose actual selling price or appraised value varies by more than a threshold multiple of standard deviations from the home'"'"'s estimated value as determined by the most recent iteration of the regression.

20. The system of claim 18:

wherein the plurality of data types includes a builder identification.

21. The system of claim 20:

wherein the plurality of data types includes a builder rating.

22. The system of claim 18:

wherein the plurality of data types includes a distance from the particular home.

23. The system of claim 18:

wherein the plurality of data types includes a statistical rating of a geographic area in which a home in the plurality of homes is located.

24. The system of claim 18:

wherein the plurality of data types includes an identification of at least one type of home upgrade.