Skewed Pricing

As a data scientist at a real estate analytics startup, you’re tasked with building a predictive model for home prices in a large metropolitan area. During your exploratory data analysis, you notice that the home_prices column in your dataset is heavily right-skewed (i.e., there are many lower-priced homes and a few extremely high-priced ones).

How might this skewness impact your modeling approach, and what steps would you consider to address it before training your model?

Bonus: If, instead, you discover that the target variable (home_prices) is heavily left-skewed (i.e., there are many high-priced homes and a few low-priced outliers), what would you do differently, if anything?