Data Collection Essay

1717 WordsJul 18, 20117 Pages
When the value of a property is analyzed, the secondary data may be a determining factor in fluctuating market prices. Secondary data is any additional information of real estate property such as: number of bedrooms and bathrooms, is there is a garage or pool, and if any city constructions are on the property. Recent studies have been conducted to determine how much of an effect various factors have on the overall property prices. In order to keep prices low in rough economic times, a fair market value is determined mostly on primary data without much consideration on some secondary data. There are numerous factors that can go into the secondary data category; the trick is to know what data is important. Peer Reviewed Articles The Problem of Faulty Analysis The article that was used is called The Problem of Faulty Analysis. This article examines the methods used to gauge right of way on value of properties. When they are referring to right of way, it is speaking to cell phone towers, high tension power lines, or drainage ditches and reservoirs. The article identifies some methods used to determine changes of value on property of cell phone towers and high tension power lines and their accuracy. The representation that was provided through these studies was flawed. The authors used a Hedonic approach and a regression analysis approach. They were viewed as biased in that they left out key variables like the number of bedrooms, size of the garage, also if the property is owner occupied or an investment property. All these have significant impact on value of the property. The hedonic method and hypothetical approach does not yield scientifically reliable or creditable results (Wilson, A, 2006). The sample of the surveys used, were not representative of the true population. Most of the data was from a buyer’s perspective. Appraisers use one of three different

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