Monday, July 27, 2009

Does Mineral Rights Affect Propert Prices?

The Arlington 83-I area is used in my analysis. The results show a significant "mineral premium" on sales price. A property transferring the mineral rights to the buyer increases sales price by $17523.317. This is the most persistent factor influencing sale prices.

My model is--

Sale Price = 8909.460 + 59.116 Square Feet -716.588 Age +16435.744

Total Baths + 17523.317 Mineral Rights



There is a 95% confidence that the population mean for mineral rights lies within the interval

[ 8993.477, 26053.158]


Another finding in my study is the bi-directional causality between sale price and days in the market, I accomplish this by a Granger Causality test.



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