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Using price data from several recent housing transactions in a particular area, Polaris Real Estate Group has identified the main characteristics that affect prices. The
Using price data from several recent housing transactions in a particular area, Polaris Real Estate Group has identified the main characteristics that affect prices. The estimated value impact of each characteristic, as well as a standard base price, is as follows: \begin{tabular}{lll} Characteristic & Units & Impact \\ Base price & & $116,000 \\ Living area & Square feet & $35/ square foot \\ Number of bathrooms & Number & $7,100/ bathroom \\ Age of home & Years & $5,100/ year \\ \hline \end{tabular} Using the above values, estimate a price for a five-year-old home that has a living area of 1,500 square feet and two bathrooms
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