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Range is a term used in statistics to describe the difference between the highest and lowest values in a set of data. It gives us an idea of how spread out or varied the data is.
Range = greatest value - smallest value
In a survey, people were asked how many hours they exercise per week. The answers were: 1, 2, 3, 4, 5, and 6. To find the range, we subtract the smallest value (1) from the largest value (6), which gives us a range of 5.
"A Deep Dive for Real Estate Agents and Appraisers"
Let's see how the range could be used in a real estate appraisal and a real estate agent transaction.
Real Estate Appraisal:
An appraiser is hired to determine the value of a property. They consider the recent sales of similar homes in the area, known as comparables (or comps). When analyzing the comps, the appraiser notices the following sale prices: $250,000, $275,000, $300,000, $325,000, and $350,000. The range of these comps is $100,000 ($350,000 - $250,000). The appraiser can use this range to understand the variability in the local market and provide a more accurate value for the property in question. In this case, the range of the comps suggests that there is a considerable variation in property values in the area, which the appraiser should consider when determining the final valuation.
Real Estate Agent Transaction:
A real estate agent is assisting a client in purchasing a home in a specific neighborhood. The client has a budget of $300,000. The agent researches the recent sales in the area and finds that the prices range from $200,000 to $400,000. In this case, the range is $200,000 ($400,000 - $200,000). The agent can use this information to set realistic expectations for their client and inform them that they will likely find suitable properties within their budget. Additionally, the agent can use the range to help negotiate the price of a property, as it gives an idea of the price fluctuations in the area, which can be a valuable bargaining tool.
In both examples, the range helps real estate professionals understand the local market's variability and make more informed decisions when it comes to property valuation and transactions.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Range is the spread of data you see,
Highest minus lowest, it's as easy as can be.
For example, if people exercise 1 to 6 hours a week,
The range is 5, which is a large difference, don't you think?