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Why is your competition closing more homes than you?

Regression Test: Where do you fit in?

A Regression Test is an inexpensive tool to analyze your opportunities within your local market to ensure you are competitively positioned.

What is a Regression Test? The Regression Test starts the research process by focusing on a specific geographical area. It investigates all of the competitive communities within the boundary and returns focused data on closings, square footage, sales price, and other factors to determine what is relevant in the buying decision. This data is then used to create a snap-shot to determine where the prospective project should fall. It reveals where your community is aligned with regards to the competition and where you need to be positioned to achieve the best results.

In today's ever competitive market, how do you know if you have positioned yourself correctly with the suitable price, square footage, number of bedrooms, bathrooms or a multitude of other competitive items? What items will potential buyers use to compare you to the competition? Which factors have more value in the customers buying decision? Are you creating value? What are the quantitative results needed to ensure your greatest absorption in your local market? You don't have to speculate anymore. The regression can answer these questions and more.

The chart below illustrates a Simple Linear Regression between square feet and sales price. The red line indicates the regression line. This line shows statistically where the product should be in order to be competitive for these two variables. This is only one of many Simple Linear Regressions that can be used to analyze your positioning. In addition, complex multi-variable regressions can be performed to view the relationship between many components simultaneously and what affect they have on sales pace and/or absorption.

Let us show you the benefits of a Regression Test. For more information on how a Regression Test will aid your product and community positioning, contact Evans and Law, LLC today.