{"id":254,"date":"2022-11-19T16:45:54","date_gmt":"2022-11-19T16:45:54","guid":{"rendered":"https:\/\/pacificvista.net\/price_models\/?p=254"},"modified":"2022-11-19T17:20:58","modified_gmt":"2022-11-19T17:20:58","slug":"gla-vs-room-count-why-they-compete-in-price-models","status":"publish","type":"post","link":"https:\/\/pacificvista.net\/price_models\/2022\/11\/19\/gla-vs-room-count-why-they-compete-in-price-models\/","title":{"rendered":"GLA vs Room Count:  Why they compete in Price Models.","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"254\" class=\"elementor elementor-254\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0c7fcc1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0c7fcc1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b614f0d\" data-id=\"b614f0d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-62f0b7a elementor-widget elementor-widget-text-editor\" data-id=\"62f0b7a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Many features in house price models are collinear; as you vary the value of one factor, the other factor will also change correspondingly, to varying degrees.\u00a0<\/p><p>For example, increasing the Room <em>Count<\/em> of a house will typically increase the size or gross living area (GLA).\u00a0 This is a strong tendency.\u00a0 \u00a0\u00a0This makes model construction difficult as a choice must be made between one feature or another to explain market price differences.\u00a0 MARS regression tries to find the combination of these two features that best explain price variance in a data set or market area.\u00a0 Indeed, MARS often generates models that appear at odds with each other, at times making GLA dominant and other times room count dominant.\u00a0 \u00a0\u00a0This may not be clear to someone considering a particular price model.\u00a0 \u00a0<\/p><p>Traditional appraisers typically have specific adjustments for GLA and room count, giving one the dominant role.\u00a0 However, MARS is open in this regard:\u00a0 It will typically give adjustments for both, depending on which combination best predicts price in the input and test data sets.<\/p><p>Why would Room Count be given more importance than GLA?\u00a0 Consider that the MLS data for home area consists of:<\/p><ol><li>Total building area, or for Single Family Residential (SFR) homes, \u201cgross living area\u201d (GLA).<\/li><li>The total number of bedrooms.<\/li><li>The total number of bathrooms, giving a partial bathroom a value of .5 (toilet + sink) or .25 (sink).<\/li><li>The total number of rooms.<\/li><\/ol><p>What should be noted here is that many other types of rooms are usually in the house.\u00a0 We will have a kitchen, family room, dining room, laundry room, playroom, and so on.\u00a0 So, unsurprisingly GLA is often better in providing a basis for valuation, especially if the bathrooms and bedrooms are of varying sizes for different homes in the market area.\u00a0<\/p><p>However, the exception to this is if you are in an area where the bedrooms and bathrooms happen to be about the same size and value across the board. \u00a0At the same time, the other rooms vary greatly in size and quality, &#8211; and in addition, these other rooms, aside from the typical kitchen and living room, are not as important to price as the bedrooms and bathrooms.\u00a0 The reason for the latter is that the number of bathrooms and bedrooms limits how many occupants the home can support.\u00a0\u00a0 So, in some areas, the bedroom and bathroom count can be far more indicative of value than GLA.\u00a0 In such areas, the MARS regression model may, in fact, give an unusually low adjustment for GLA while giving a far greater adjustment to the bedroom and bathroom count.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Many features in house price models are collinear; as you vary the value of one factor, the other factor will also change correspondingly, to varying degrees.\u00a0 For example, increasing the Room Count of a house will typically increase the size or gross living area (GLA).\u00a0 This is a strong tendency.\u00a0 \u00a0\u00a0This makes model construction difficult [&hellip;]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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