Equation: Finding the expected cost for a property before you buy

[Kourosh Behnam]

Hi Everyone,

I recently purchased a duplex in SLC Sugar House area and this is what I did for my duplex analysis. I created a spreadsheet that logged the purchase price and square footage of all the duplexes in the certain area code that I wanted. I did this because I wanted to find the best purchase price per square footage for a duplex. When I did this, I quickly realized which duplexes were being over priced in the area code that I wanted.

I created a Marked Scatter Chart in excel: housing price on the y-axis and square footage on the x-axis. Then I created a Trendline and the Equation of that trendline in the chart (see image below). Then I multiplied the original square footage of each duplex by the equation to get the expected cost of each duplex in my spreadsheet. Before multiplying the square footage by the equation, make sure to delete y and x from the equation.

For example, if the equation of your line is y = 67.427x + 214929, then you would want to input the original square footage into the equation like this = 2070x67.427 + 214929. (All this info is from the image below)

I hope this analysis can help you make a better decision on what property to buy 😀