Barriers, drivers and prospects of the adoption of artificial intelligence property valuation methods in practice

2021 ◽  
pp. 1-18
Author(s):  
Rotimi Abidoye ◽  
Junge Ma ◽  
Chyi Lin Lee
Keyword(s):  
Artificial Intelligence ◽  
Valuation Methods ◽  
Property Valuation

scholarly journals Fuel Station Valuation under Polish and RICS Standards

2017 ◽  
Vol 25 (2) ◽  
pp. 20-32
Author(s):  
Mirosława Czaplińska ◽  
Małgorzata Rymarzak ◽  
Dariusz Trojanowski
Keyword(s):  
United Kingdom ◽  
Market Structure ◽  
Comparison Analysis ◽  
Specific Approach ◽  
Valuation Methods ◽  
Property Valuation ◽  
The United Kingdom ◽  
Income Approach ◽  
Similarities And Differences ◽  
The Way

Abstract In the last few years, there has been a visible change in the structure of the fuel station market in both Poland and the United Kingdom. The changes taking place both in the fuel station market structure and the management forms of fuel stations, along with the increasing significance of convenience goods sales, result in the necessity of verifying the existing Polish valuation standards of the income approach. Moreover, there is an urgent need to develop specific fuel station valuation guidelines. Fuel station valuation requires both the specific approach and profits method adjustment to be able to account for the specificity of the valuation. The universal character of property valuation in Poland cannot result in ignoring the specificity of fuel station valuation and the market where it operates. Property valuers undertaking valuations of this type of facilities must be familiar with the rules operating on the fuel station market. This paper focuses on the comparison analysis of the fuel station market structure in Poland and the United Kingdom along with the specificity of the way fuel stations operate. Its emphasis is on the comparison analysis of fuel station valuation methods under Polish and RICS standards in order to show their similarities and differences. The aim of the paper is to present the methods of fuel station valuation in Poland and the United Kingdom, though mainly to show the areas of changes in the Polish valuation standards with regards to the profits method under the income approach that would take into account the specificity of fuel stations and their market.

Property valuation methods in practice: evidence from Australia

2019 ◽  
Vol 37 (5) ◽  
pp. 701-718 ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Ma Junge ◽  
Terence Y.M. Lam ◽  
Tunbosun Biodun Oyedokun ◽  
Malvern Leonard Tipping
Keyword(s):  
Good Practice ◽  
Hedonic Pricing ◽  
Educational Institutions ◽  
Online Questionnaire ◽  
Content Type ◽  
Hedonic Pricing Model ◽  
Valuation Methods ◽  
Property Valuation ◽  
Use Of Technology ◽  
Logic System

Purpose Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods. Design/methodology/approach An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking. Findings The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods. Practical implications There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems. Originality/value This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.

Pricing to market: property valuation methods – a practical review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Gabrielli ◽  
Nick French
Keyword(s):  
Specific Property ◽  
Market Value ◽  
Content Type ◽  
Valuation Methods ◽  
Property Valuation ◽  
Valuation Method ◽  
Valuation Process ◽  
Valuation Task ◽  
The Right

PurposeValuation is the process of determining Market Value. Property valuation, as with the valuation of all assets, is an estimation of price in the market. It is value in exchange. The valuer role is to determine the appropriate approach, the method and use the right model to achieve this aim as best as possible. It is a combination of analysing the market and determining the critical variables for the valuation method/model. The method is separate from the valuation process which should be followed (according to the International Valuation Standards Council Valuation Standards) regardless the valuation method chosen. There are valuation approaches, valuation methods and, as a subset of the methods, techniques or models.Design/methodology/approachThis practice briefing is an overview of the Valuation Methods and Models available to the valuer and comments on the appropriateness of valuation each in assessing Market Value for specific property types.FindingsThis briefing is a review of the valuation methods and models and models that can be applied to determine market value.Practical implicationsThe role of the valuer in practice is to identify the method of valuation and then apply the correct mathematical model for the valuation task in hand.Originality/valueThis provides guidance on how valuations can be presented to the client in accordance with the International Valuation Standards.

scholarly journals THE APPLICATION OF MULTI-CRITERION METHODS FOR VALUATION OF RECREATION PROPERTY/DIE ANWENDUNG DER MEHRKRITERIELLEN METHODE BEI DER BEWERTUNG VON ERHOLUNGSGRUNDSTÜCKEN

2001 ◽  
Vol 7 (4) ◽  
pp. 327-333 ◽  
Author(s):  
Edmundas Kazimieras Zavadskas ◽  
Arturas Kaklauskas ◽  
Saulius Raslanas ◽  
Vida Malienė
Keyword(s):  
Theoretical Model ◽  
Market Value ◽  
Market Analysis ◽  
Multiple Criteria ◽  
Multiple Criteria Analysis ◽  
Real Property ◽  
Valuation Methods ◽  
Property Valuation ◽  
Real Estate Valuation ◽  
The World

Multi-criterion valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income use [1]. A number of problems in the valuation of real property can be eliminated by the methods of multiple criteria analysis, which came into existence only at the second half of the 20th century. Currently, they have become very important in the international practice of the real property valuation. In most cases they are based on market modelling and economic assumptions. Therefore, sometimes they are referred to as separate valuation methods, and classified as modern ones. This article describes a new method of multiple criteria analysis. This method based on the market analysis and valuation principle is in line with the traditional comparative value method, therefore it can be attributed to the group of the indirect comparative value methods. These methods facilitate the universal and more extensive multiple criteria analysis of the property, since they take account of a number of different criteria, ie qualitative, quantitative ones, market conditions. The proposed method can meet the demands and needs of many interested groups since it enables to estimate not only the market value of the property, but also other values, eg investment value, value of use, market value of the current use of the property, etc. This article analyses the theoretical model of the method, which was used to estimate the market value of the recreation premises.

Property valuation for mortgage purposes in Poland

2018 ◽  
Vol 36 (2) ◽  
pp. 234-247 ◽  
Author(s):  
Hanna Augustyniak ◽  
Jacek Laszek ◽  
Krzysztof Olszewski ◽  
Joanna Waszczuk
Keyword(s):  
Financial Stability ◽  
International Standards ◽  
Content Type ◽  
Polish Literature ◽  
Valuation Methods ◽  
Property Valuation ◽  
Reliable Source ◽  
Valuation Process ◽  
International Investors ◽  
Valuation Uncertainty

Purpose The purpose of this paper is to describe the property valuation methods that are applied in Poland. It shows that they base on international standards and are a reliable source of information for international investors and banks. Design/methodology/approach The valuation methods are described and critically assessed, potential problems are pointed out. The analysis of lending risk is analysed on data about non-performing loans (NPL). Findings Polish valuation methods are in line with international methods, but there are some risks, like small number of transactions, subjective behaviour of valuers. The low NPL ratios indicate that the valuation works correctly. Practical implications The Polish valuation methods are trustworthy, non-performing mortgage ratios are low, however, banks and investors should ask whether there is a local zoning plan. Moreover, they should look critically at the comparables that were used during the valuation process, if in their opinion the valuation is overly low or high. Originality/value This paper focusses on valuation from a financial stability perspective. It uses Polish literature and data on NPLs to give an insight on valuation of property and mortgage risk in Poland. Besides the review of the methods it points out the problems related to valuation uncertainty, such as the risk of subjective behaviour of valuers and the low number of transactions in some regions, which are used for valuations.

scholarly journals PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS/NEKILNOJAMOJO TURTO VERTINIMAS DAUGIAKRITERINIU METODU

1999 ◽  
Vol 5 (4) ◽  
pp. 272-284
Author(s):  
Vida Malienė ◽  
Edmundas K. Zavadskas ◽  
Artūras Kaklauskas ◽  
Saulius Raslanas
Keyword(s):  
Real Estate ◽  
Multiple Criteria ◽  
Multiple Criteria Analysis ◽  
West Germany ◽  
Value Analysis ◽  
Market Data ◽  
Valuation Methods ◽  
Advantages And Disadvantages ◽  
Property Valuation ◽  
Real Estate Valuation

Multiple criteria valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income of use. They are used in valuating various property characteristics, ie its location or obsolescence degree. In Germany, however, multiple criteria valuation technique refers to a separate group of property valuation methods applied when market data are unavailable or insufficient (ie purchasing, selling or renting prices are not known). The above methods have been used for real estate valuation since 1976. Dr. H. E. Auerhammer [1] was the first to apply these approaches to solving real estate valuation problem caused by the scarcity of market data. These methods supplemented with systems of criteria developed by other authors were later applied to particular cases when three major commonly used property valuation methods could not be applied. Thus, K. Gablenz [2] suggests using the method described in assessing plots intended for agriculture, while B. Bischoff [3] offers to use it for determining the investments into plots. R. Vogel [4] thinks that the approach may be used for determining the approximate value of land, whereas G. Sommer and P. Zimmermann [5] and Piehler [6] developed a system of criteria to be used as a part of the method described in determining the differences between the value of quantitative and qualitative characteristics of an object and its market value. T. Gierardy and R. Moeckel [7] described the advantages and disadvantages of methods based on multiple criteria analysis. The above methods are widely used in Germany for property valuation, the peak of their application being associated with the unification of East and West Germany in 1990 [8]. Multiple criteria analysis presented in this paper for property valuation may be used to the advantage of various interested parties (see Fig 1). The representatives of various parties including appraisers, buyers, sellers and investors may use it for their particular purposes: appraiser may apply this method to real estate value analysis for determining the market, use and other values of real estate being mortgaged, ensured, privatised, divided or nationalised; investor may rely on it for more efficient use of this property; buyer may use it for choosing property which would satisfy his personal needs to the best advantage; seller has to determine the market price of his property that would ensure its competitive ability on the market. To satisfy all the needs described multiple criteria valuation method presented in the paper may be successfully used. To show its efficiency the solution of a sample problem, representing a real case is provided.

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