Business Objective
Our client, a large real estate company based in the US wanted to leverage a condo pricing model based on analytics to determine prices for their condos.
The client wanted to re-look at the current pricing, which was not optimal, and build a tool that would help price various condos. Their existing methodology for determining condo prices involved keeping track of similar sales in the region and determining prices intuitively.
Challenges
- Incorporating the effects of the location of a building, which are not easily quantifiable
- Numerous correlated factors, such as square footage, number of bedrooms, bathrooms, floor height, patio area, view, etc., have to be considered
Solution Methodology
- Performed exploratory data analysis on existing data in line with business requirements
- Developed a multivariate regression model to estimate sale prices of various condos
- Estimated weights of features that differentiate the houses from each other
- Built an Excel UI where the user can select and modify pricing criteria and develop custom reports for trends and outliers
Business Impact
- The analytical model estimated condo prices within an error rate of 5%
- The analysis also identified factors that influenced condo prices the most
