Sometimes bedrooms may not be significant due to collinearity (see #7). Bedrooms above a certain number are usually chopping a small house up even smaller. A 1200 square foot home with 4 bedrooms may not be as valuable as a 1200 square foot home with 3 bedrooms. Due to our model rules, an additional bedroom on a comparable property will never have a positive adjustment. However, there are often times where an adjustment will not be suggested for this reason.
Articles in this section
- FAQ Regression - What does R squared signify?
- FAQ Regression - How can bedrooms be considered an insignificant attribute?
- FAQ Regression - What is collinearity? Why is it important?
- FAQ Regression - Do appraisers have to use the regression results?
- FAQ Regression - Can I make an adjustment even when an attribute is not considered significant?
- FAQ Regression - What’s the value of analyzing 2000 properties? Don't we just need three?
- FAQ Regression - What does significant mean?
- FAQ Regression - When should I make adjustments to attributes other than the ones HouseCanary analyzed?
- FAQ Regression - What do the sliders mean?