1. What is the hedonic approach for property valuation? Discuss its rationale and complete the following valuation calculation.

Value = 14,844 + 148 X₁ 2,259 X₂ + 7,500 X₃ + 25.33 X₄ + 15.74 X₅

+ 52,670 X₆

X₁: living area sq. ft. X₂: years X₃: number of bathrooms X₄: lot area sq. ft. X₅: deck X₆: ocean view

What will be the value for a real property with specifics of:

3,350 sq. ft. living area; 12 years old; 4 bathrooms; 8,200 sq. ft. lot; 280 sq. ft wood deck; and with ocean view? (M5)