The purchase of a house is associated with a high risk because it requires substantial financial costs. In order not to lose the invested funds, people should be careful about such purchase. The first criterion is the number of rooms in the house, which will directly depend on the family that would live there. The second criterion may be the infrastructure near the house. It is essential to calculate how long it will take to get from home to work or school, by private or public transport. For many people, both the exterior and interior design is also essential, so this can be the third criterion.
Buyers need to pay attention to the water supply system and electrics (Moen et al., 2021). If these systems fail, buying a new home can cause bigger problems, leading to even more money being spent. In order to do the research, a site Zillow.com was selected. The criteria were: three or more bedrooms, two or more bathrooms, one parking space, basement, air conditioning, and a view on water. For the analysis, the first ten houses what appears were selected. The most expensive house cost almost seven hundred thousand dollars, and the cheapest – two hundred thousand exactly.
Mean price of homes is 386.7 dollars
(699+674+424+399+399+299+285+250+238+200)/ 10= 386.7
Median price is 349 dollars
200, 238, 250, 285, 299, 399, 399, 424, 674, 699- the median is (299+399)/2=349
Mode price is 399 dollars, which appeared twice.
The main criterion that affected the cost of the houses was its location and view. Houses located closer to the water were a more considerable investment. Although people might think that the number of rooms would affect the home’s value, the most expensive house for seven hundred thousand dollars had three bedrooms, when the house with five bedrooms cost four hundred and twenty thousand dollars. A significant aspect affecting the value of the house was also its area. The building with the largest area of almost four and a half thousand square feet cost the most, and the cheapest had the smallest area of nineteen hundred square feet.
Such a serious investment as a new house should be treated much more carefully than buying an apartment. If urban housing can have standard projects, private houses are rarely similar. The properties of the land plot can complicate the choice. To learn as much information about the future home as possible without wasting the seller’s time, people must select the criteria and action plan when first viewing the house.
Reference
Moen, E. R., Nenov, P. T., & Sniekers, F. (2021). Buying first or selling first in housing markets. Journal of the European Economic Association, 19(1), 38-81.