Using the script produced to predict housing price, I modified it using the provided number of bedrooms, square footage, number of bathrooms, and prices from the six houses from Mathews, Virginia. I scaled down the square footage by 1,000 and the price by $100,000, then used a neural network to predict the house price for varying numbers of bedrooms, square footage, and bathrooms. I then found the difference between the predicted price and the actual price to determine which of the homes present the best and worst deals.
x1 = np.array([3.0, 2.0, 4.0, 5.0, 3.0, 4.0], dtype=float) #number of bedrooms
x2 = np.array([2.840, 1.479, 3.524, 3.051, 1.238, 3.680], dtype=float) #sqft(/1000)
x3 = np.array([2.0, 1.0, 2.0, 2.0, 1.0, 3.0], dtype=float) #number of bathrooms
xs = np.stack([x1, x2, x3], axis=1)
ys = np.array([2.29, 2.50, 2.89, 3.475, 0.97, 3.99], dtype=float)
Below is a table comparing the actual prices vs. the model-predicted prices of the six homes:
| House (# bd, sqft, ba) | Actual price | Model-predicted price |
|---|---|---|
| New Point Comfort (3 bd, 2,840 sqft, 2ba) | $229,000 | $280,041 |
| Moon (2 bd, 1,479 sqft, 1 ba) | $250,000 | $158,585 |
| Mobjack (4 bd, 3,524 sqft, 2 ba) | $289,000 | $305,385 |
| Mathews (5 bd, 3,051 sqft, 2 ba) | $347,500 | $306,713 |
| Hudgins (3 bd, 1,238 sqft, 1 ba) | $97,000 | $164,729 |
| Church (4 bd, 3,680 sqft, 3 ba) | $399,000 | $390,682 |
The New Point Comfort house now costs $51,041 less than predicted by the model. The Mobjack house is similarly undervalued, costing $16,385 less than predicted. The Hudgins house is also still a good deal, costing $67,729 less than predicted by the model.
Previously predicted to be a good value, the Mathews house is now a bad deal, costing $40,787 more than predicted. Additionally, the Moon house is overvalued by $91,415. The Church house costs $8,318 than predicted by the model, so it is also not a good deal.
Based on this updated model, the Hudgins home still presents the best deal, but now the Moon home is now the worst deal.
Below is a table comparing the model-predicted prices of the bedroom model and the bedroom/sqft/bathroom model:
| House (# bd, sqft, ba) | Actual price | Bd model-predicted price | Bd/sqft/ba model-predicted price |
|---|---|---|---|
| New Point Comfort (3 bd, 2,840 sqft, 2ba) | $229,000 | $232,242 | $280,041 |
| Moon (2 bd, 1,479 sqft, 1 ba) | $250,000 | $171,437 | $158,585 |
| Mobjack (4 bd, 3,524 sqft, 2 ba) | $289,000 | $300,638 | $305,385 |
| Mathews (5 bd, 3,051 sqft, 2 ba) | $347,500 | $368,824 | $306,713 |
| Hudgins (3 bd, 1,238 sqft, 1 ba) | $97,000 | $232,242 | $164,729 |
| Church (4 bd, 3,680 sqft, 3 ba) | $399,000 | $300,638 | $390,682 |
Code: Feb5Response_update.py