Overview

Abstract

The Foundations section publishes precise treatments of concepts that underlie valuation methodology, placing them in their formal context and explaining where they appear in appraisal practice. The inaugural six entries establish the core vocabulary of the hedonic framework: Heterogeneous Good, Characteristics Space, Hedonic Price Function, Implicit Price, Hedonic Regression, and Latent Variable. Arranged in dependency order, each entry builds on the vocabulary of the previous ones. A single running example --- eight comparables from a Pacifica, California neighborhood --- threads through all six, culminating in an unexplained regression residual that motivates the residual-as-signal interpretation underlying Residual Constraint Approach.