Estimation of detached houses prices by a method based on Sales Comparison Approach

Abstract

In recent years, business application of research results has been actively performed in the AI domain. And in the real estate domain, there are many services that predict and provide prices of real estate market. However, many of these services do not imitate calculation process of real estate appraisers. In this study, we attempt to estimate the price of a detached houses by reproducing the calculation process of real estate appraisers mechanically, especially the sales comparison approach (SCA). To imitate the process, we predict the price using regression analysis and regression trees. In conclusion, it is clear that the prediction accuracy was improved when the process of this study was used than when the linear regression model was applied to the entire data set.