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:

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.

Transcribed Image Text:

Characteristic Base price Living area Number of bathrooms Age of home Units Square feet Number Years Impact $125,000 $35/square foot $8,000/bathroom - $6,000/year