A Real Estate Company Has Prepared a Simple Hedonic Model $\bullet$

A real estate company has prepared a simple hedonic model to value houses in a specific downtown area. A summary list of the houses' characteristics that can affect pricing are:
$\bullet$ The number of main rooms.
$\bullet$ The surface of the garden (if any).
$\bullet$ The construction material (wood or brick).
$\bullet$ The distance to a subway station.
A detailed statistical analysis of a large number of recent transactions in the area allowed to derive the following slope coefficients:
$$\begin{array}{l}\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Slope Caeficient in }\\\begin{array} { l c c } \text { Characteristies } & \text { Units } & \text { Euras per Unit } \\\hline \text { Number of Roams } & \text { Number } & 30,000 \\\text { Surface of the Garden } & \text { Square meters } & 200 \\\text { Construction Material (bricks) } & 0 \text { ar } 1 & 30,000 \\\text { Distance to Subway Station } & \text { In meters } & - 100\end{array}\end{array}$$ A typical house in the area has 5 main rooms, a garden of 500 square meters, constructed with bricks, and a distance of 300 meters to the nearest subway station. The transaction price for a typical house was €250,000.
a. You wish to value a house that has 7 rooms, a small garden of 100 square meters, constructed in wood, and a distance of 100 meters to the nearest subway station. What is the appraisal value based on this sales comparison approach of hedonistic price estimation?
b. You wish to value a house that has 7 rooms, a garden of 1,000 square meters, constructed in brick, and a distance of 1 kilometer to the nearest subway station. What is the appraisal value based on this sales comparison approach of hedonistic price estimation?