1. A real estate company has prepared a simple hedonic model to value houses in a specific downtown area. A summary list of the house's characteristics that can affect pricing are:
2. The number of main rooms
3. The surface of the garden (if any)
4. The construction material (wood or brick) The distance to a subway station
5. A detailed statistical analysis of a large number of recent transactions in the area allowed to derive the following slope coefficients:

Characteristics

Number of rooms

Surface of the garden Construction material (bricks) Distance to subway station

Units

Number Square meters 0 or 1

In meters

Slope Coefficient in Euros per Unit 30,000

200

30,000

-100

A typical house in the area has 5 main rooms, a garden of 500 square meters, constructed with bricks and a distance of 300 meters to the nearest subway station. The transaction price for a typical house was 250,000.

You wish to value a house that has 7 rooms, a small garden of 100 square meters, constructed in wood and a distance of 100 meters to the nearest subway station. What is the appraisal value based on this sales comparison approach of hedonistic price estimation? Show your work.