How Real Estate Ads Correlate to Final Sales Price
September 14, 2008 – 12:42 pm80 pages into the book Freakonomics, I find it informational and fun to read. It will certainly change my views on some day-to-day activities. The part on real estate agents is so interesting that I decide to write it down. Data show that some common terms used in real estate ads are correlated or negatively correlated to the final sales prices.
5 terms correlated to a higher sales price:
- granite
- state-of-art
- corian
- maple
- gourmet
5 terms correlated to a lower sales price:
- fantastic (ambiguous adjective, the house doesn’t have many specific attributes worth describing)
- spacious (decrepit or impractical)
- ! (false enthusiasm)
- charming (same as “fantastic”)
- great neighborhood (“this house isn’t very nice but others nearby maybe”)