The Composition of Hedonic Pricing Models

Authors: G. Stacy Sirmans, David A. Macpherson and Emily N. Zietz

Start Page: 1
End Page: 44
Volume: 13
Issue Number: 1
Year: 2005
Publication: Journal of Real Estate Literature

Abstract: A house is made up of many characteristics, all of which may affect its value. Hedonic regression analysis is typically used to estimate the marginal contribution of these individual characteristics. This study provides a review of recent studies that have used hedonic modeling to estimate house prices. The findings indicate that slanted versus flat roof, sprinkler system, garden bath, separate shower stall, double oven and gated community positively affect selling price while not having attic space, living in an earthquake zone, proximity to a hog farm, proximity to a landfill, proximity to high voltage lines, corporate-owned properties, percentage of Blacks or Hispanics in an area and properties that require flood insurance negatively affect selling price.