Determination of the parameters of automated valuation models for the hedonic property valuation of residential properties

2018 ◽  
Vol 11 (1) ◽  
pp. 73-100 ◽  
Author(s):  
Steffen Metzner ◽  
Andreas Kindt
Keyword(s):  
Performance Analysis ◽  
Real Estate ◽  
National Economy ◽  
Content Type ◽  
Property Valuation ◽  
Hedonic Valuation ◽  
Regression Parameters ◽  
Wide Range ◽  
Residential Properties ◽  
The Individual

Purpose The development and testing of the hedonic methods for property valuation require statistical analysis and professional preparation of relevant databases. As a first step, the presumable relevant influencing variables (parameters) have to be determined. Previous studies have shown a large variety of parameters which overlap or deviate from each other. This study aims to collect, systematise and structure different parameters for the further development and testing of hedonic models. Design/methodology/approach The study comprises a detailed research and deeper analysis of previous studies regarding the hedonic valuation (mainly for residential properties). Flanking areas of examination serve, if they are appropriately suitable, as supplements (e.g. performance analysis and regression). Parameters are extracted from a wide range of literature, compared and integrated into an overall presentation of the results. Findings In total, 407 parameters were extracted from previous studies on hedonic valuation and performance analysis. Because of various definitions of some parameters in the literature, the current paper combined them in one meaning to avoid misunderstandings in further analysis. Higher-level (global) and lower-level (specific) parameters are contained/described in the final list. The result of this study identifies up to five levels of parameters (within the relevant hierarchy). Research limitations/implications The parameters have not yet been statistically tested. The relevance of individual parameters has to be tested with relevant corresponding databases and statistical methods (e.g. correlation and regression). Practical implications To manage larger real estate portfolios, there is a need for regular property valuations. From this perspective, there is a great interest related to the optimisation of the valuation costs, valuation quality and valuation duration. Hedonic methods are considered as an efficient way of performing these valuation tasks. However, further suitable models and parameters are needed. The study describes parameters that can be appropriate for the development of relevant models and creates a structured parameters list, providing the technical basis for the latter. This structured parameter list is substantiated by the evaluation of the existing research. Social implications Property values represent a significant asset for the national economy and for the individual wealth/welfare. The development of property value in a national economy is also relevant for politics, economy and society. The use of hedonic methods and the knowledge of important individual parameters can contribute towards assessing and substantiating the effect of political decisions on the value of real estate. Originality/value For the first time, a comprehensive and structured analysis on the value of the relevant parameters used in hedonic methods is performed. Thereby a large number of parameters were identified which question the stability of the results in respective individual studies. In addition, the newly developed hierarchy of parameters can serve as the basis for further research.

The role of organizational culture in the knowledge management process

2015 ◽  
Vol 19 (3) ◽  
pp. 433-455 ◽  
Author(s):  
Christina Ling-hsing Chang ◽  
Tung-Ching Lin
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Customer Service ◽  
Survey Methodology ◽  
Cultural Dimensions ◽  
Content Type ◽  
Knowledge Resources ◽  
Positive Effects ◽  
Wide Range ◽  
The Individual

Purpose – The purpose of the study is to focus on the enhancement of knowledge management (KM) performance and the relationship between organizational culture and KM process intention of individuals because of the diversity of organizational cultures (which include results-oriented, tightly controlled, job-oriented, closed system and professional-oriented cultures). Knowledge is a primary resource in organizations. If firms are able to effectively manage their knowledge resources, then a wide range of benefits can be reaped such as improved corporate efficiency, effectiveness, innovation and customer service. Design/methodology/approach – The survey methodology, which has the ability to enhance generalization of results (Dooley, 2001), was used to collect the data utilized in the testing of the research hypotheses. Findings – Results- and job-oriented cultures have positive effects on employee intention in the KM process (creation, storage, transfer and application), whereas a tightly controlled culture has negative effects. Research limitations/implications – However, it would have been better to use a longitudinal study to collect useful long-term data to understand how the KM process would be influenced when organizational culture dimensions are changed through/by management. This is the first limitation of this study. According to Mason and Pauleen (2003), KM culture is a powerful predictor of individual knowledge-sharing behavior, which is not included in this study. Thus, this is the second limitation of this paper. Moreover, national culture could be an important issue in the KM process (Jacks et al., 2012), which is the third limitation of this paper for not comprising it. Practical implications – In researchers’ point of view, results- and job-oriented cultures have positive effects, whereas a tightly controlled culture has a negative effect on the KM process intention of the individual. These findings provide evidences that challenge the perspective of Kayworth and Leidner (2003) on this issue. As for practitioners, management has a direction to modify their organizational culture to improve the performance of KM process. Social implications – Both behavioral and value perspectives of the organizational cultural dimensions (results-oriented, tightly control, job-oriented, sociability, solidarity, need for achievement and democracy) should be examined to ascertain their effects firstly on KM culture and then on the KM process intention of the individual. It is hoped that the current study will spawn future investigations that lead to the development of an integrated model which includes organizational culture, KM culture and the KM process intention of the individual. Originality/value – The results-oriented, loosely controlled and job-oriented cultures will improve the effectiveness of the KM process and will also increase employees’ satisfaction and willingness to stay with the organization.

Applying data mining algorithms to real estate appraisals: a comparative study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thiago Cesar de Oliveira ◽  
Lúcio de Medeiros ◽  
Daniel Henrique Marco Detzel
Keyword(s):  
Data Mining ◽  
Real Estate ◽  
Support Vector ◽  
Predictive Capacity ◽  
Content Type ◽  
Data Mining Algorithms ◽  
Wide Range ◽  
Very Large Databases ◽  
Mining Algorithms ◽  
Statistical Results

Purpose Real estate appraisals are becoming an increasingly important means of backing up financial operations based on the values of these kinds of assets. However, in very large databases, there is a reduction in the predictive capacity when traditional methods, such as multiple linear regression (MLR), are used. This paper aims to determine whether in these cases the application of data mining algorithms can achieve superior statistical results. First, real estate appraisal databases from five towns and cities in the State of Paraná, Brazil, were obtained from Caixa Econômica Federal bank. Design/methodology/approach After initial validations, additional databases were generated with both real, transformed and nominal values, in clean and raw data. Each was assisted by the application of a wide range of data mining algorithms (multilayer perceptron, support vector regression, K-star, M5Rules and random forest), either isolated or combined (regression by discretization – logistic, bagging and stacking), with the use of 10-fold cross-validation in Weka software. Findings The results showed more varied incremental statistical results with the use of algorithms than those obtained by MLR, especially when combined algorithms were used. The largest increments were obtained in databases with a large amount of data and in those where minor initial data cleaning was carried out. The paper also conducts a further analysis, including an algorithmic ranking based on the number of significant results obtained. Originality/value The authors did not find similar studies or research studies conducted in Brazil.

Foreign investment in Australian residential properties

2019 ◽  
Vol 12 (2) ◽  
pp. 166-180 ◽  
Author(s):  
Hassan F. Gholipour ◽  
Hooi Hooi Lean ◽  
Reza Tajaddini ◽  
Anh Khoi Pham
Keyword(s):  
Real Estate ◽  
Foreign Investment ◽  
House Prices ◽  
Real Estate Market ◽  
Housing Development ◽  
Housing Construction ◽  
Annual Data ◽  
Content Type ◽  
Residential Properties ◽  
The Impact

Purpose The purpose of this study is to examine the impact that foreign investment in existing houses and new housing development has on residential house prices and the growth of the housing construction sector. Design/methodology/approach The analysis is based on a panel cointegration method, estimated using annual data for all Australian states and territories spanning the period of 1990-2013. Findings The results indicate that increases in foreign investment in existing houses do not significantly lead to increases in house prices. On the other hand, a 10 per cent increase in foreign investment for housing development decreases house prices by 1.95 per cent. We also find that foreign real estate investments have a positive impact on housing construction activities in the long run. Originality/value Existing studies used aggregate foreign real estate investment in their analyses. As foreign investment in existing houses and foreign investment for housing development have different impacts on the demand and supply sides of housing market, it is crucial that the analysis of the effects of foreign investment in residential properties on real estate market is conducted for each type differently.

Performance analysis of ant-lion optimization based routing algorithm for wireless sensor networks

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sasi B. Swapna ◽  
R. Santhosh
Keyword(s):  
Energy Consumption ◽  
Performance Analysis ◽  
Sensor Nodes ◽  
Wireless Sensor ◽  
Local Optimum ◽  
Network Simulator ◽  
Content Type ◽  
Ant Lion Optimization ◽  
Wide Range ◽  
Ant Lion

PurposeThe miniscule wireless sensor nodes, engaged in the wide range of applications for its capability of monitoring the physical changes around, requires an improved routing strategy with the befitting sensor node arrangement that plays a vital part in ensuring a completeness of the network coverage.Design/methodology/approachThis paves way for the reduced energy consumption, the enhanced network connections and network longevity. The conventional methods and the evolutionary algorithms developed for arranging of the node ended with the less effectiveness and early convergence with the local optimum respectively.FindingsThe paper puts forward the befitting arrangement of the sensor nodes, cluster-head selection and the delayless routing using the ant lion (A-L) optimizer to achieve the substantial coverage, connection, the network-longevity and minimized energy consumption.Originality/valueThe further performance analysis of the proposed system is carried out with the simulation using the network simulator-2 and compared with the genetic algorithm and the particle swarm optimization algorithm to substantiate the competence of the proposed routing method using the ant lion optimization.

Residential properties, resources of basic education and willingness price of buyers

2014 ◽  
Vol 4 (3) ◽  
pp. 227-242 ◽  
Author(s):  
Hao Zhang ◽  
Zhong-fei Li
Keyword(s):  
Basic Education ◽  
Housing Prices ◽  
Housing Price ◽  
Educational Resources ◽  
Allocation Mechanism ◽  
Content Type ◽  
Education Resources ◽  
Standards Of Living ◽  
Residential Properties ◽  
The Individual

Purpose – China's resource allocation mechanism in education has become an important factor in determining residential access to educational resources. The purpose of this paper is to analyze the impacts made by the individual natures of buyers, the external environment, as well as the characteristics of residential properties on the willingness price of buyers. The study's aim is to lay theoretical foundations for the determination of problems related with the matters under consideration. Design/methodology/approach – Using the panel data of 54 districts and counties in Beijing, Shanghai, Guangzhou and Shenzhen, the study unifies macro factors and micro factors in a model for empirical analysis. Findings – Basic education resources can affect housing prices via the “capitalization of education.” The degree of those educational resources’ influence on willingness price changes according to personal income levels, standards of living, housing price fluctuations, the convenience of the residential area and the degrees of urbanization in a district. The greater the buyer's income and standard of living is, the higher is their willingness price. Buyers in urbanized areas prefer increases in educational resources. Increased educational resources increase the values of residential downtown areas. In developed areas with private educational facilities, the role of educational resources in influencing property prices is relatively small. Originality/value – This paper uses data concerning the consumption and investment of residential properties to build a theoretical model for the willingness price of buyers. It unifies macro factors and micro factors in a single model and presents new results about basic education resources and the willingness price of buyers under different conditions.

scholarly journals New applications for importance-performance analysis (IPA) in higher education

2017 ◽  
Vol 36 (6) ◽  
pp. 780-800 ◽  
Author(s):  
Fraser McLeay ◽  
Andrew Robson ◽  
Mazirah Yusoff
Keyword(s):  
Higher Education ◽  
Performance Analysis ◽  
Student Satisfaction ◽  
Business Models ◽  
School Context ◽  
Management Tool ◽  
Individual Student ◽  
Factor Level ◽  
Content Type ◽  
The Individual

Purpose The constantly evolving higher education (HE) sector is creating a need for new business models and tools for evaluating performance. In this paper, an overview of the importance-performance analysis (IPA) model and its applicability as a management tool for assessing student satisfaction in the HE sector is provided. The purpose of this paper is to apply IPA in a new and novel manner, undertaking analysis at three levels; the individual student, for individual attributes and at a construct or factor level which combines individual attributes that are correlated. A practical application is illustrated, assessing the gap between the importance placed on specific student satisfaction attributes and corresponding levels of student-perceived performance realised. Design/methodology/approach The “service product bundle” (Douglas et al., 2006) is refined based on focus group evaluation. Survey responses from 823 students studying across four Malaysian private universities are analysed using factor analysis and the IPA model utilised to identify importance-performance gaps and explore the implication of the iso-rating line as well as alternative cut-off zones. Findings Factor reduction of 33 original measurement items results in eight definable areas of service provision, which provides a refined and extended management tool of statistically reliable and valid constructs. Research limitations/implications The research is undertaken in a private business school context in Malaysia. Further research could focus on other universities or countries, as well as faculties such as computing and engineering or explore other elements of education-based performance. Practical implications The research method and study outcomes can support HE managers to allocate resources more effectively and develop strategies to improve quality and increase student satisfaction. Originality/value Distinct from other IPA-based studies, analysis is undertaken at three levels; the individual participant, for individual items and at the factor level.

Employees and sustainability: the role of incentives

2016 ◽  
Vol 31 (4) ◽  
pp. 820-836 ◽  
Author(s):  
Kimberly K Merriman ◽  
Sagnika Sen ◽  
Andrew J Felo ◽  
Barrie E Litzky
Keyword(s):  
Financial Performance ◽  
Employee Engagement ◽  
Status Quo ◽  
Organizational Sustainability ◽  
Content Type ◽  
Incentive Effects ◽  
Environmental Objectives ◽  
Wide Range ◽  
The Individual

Purpose – Organizational sustainability has become a priority on many corporate agendas. How to integrate sustainability efforts throughout the organization, however, remains a challenge. The purpose of this paper is to examine two factors that potentially enhance incentive effects on employee engagement in environmental objectives: explicit organizational values for sustainability and the performance objective’s complementarity with incented financial objectives. Design/methodology/approach – The authors employed a quasi-experimental design in which participants were randomly assigned to one of four conditions, including a status quo condition against which the treatments were contrasted. Participants (n=400) were comprised of a cross-section of US employees from a wide range of occupations and industries. A post hoc qualitative analysis provided additional insights. Findings – Incentive effects were enhanced (i.e. preference for the environmental objective was significantly higher) when the environmental project offered complementary benefits for financial objectives, but not when organization values emphasized sustainability. An entrenched status quo bias for financial performance was discerned among a subset of the sample. Research limitations/implications – Management scholars must pay close attention to the role of implicit norms for financial performance when investigating employee engagement in organizational sustainability efforts. From an applied perspective, framing sustainability objectives to emphasize financial benefits consistent with a financial mission may maximize employee engagement. Originality/value – This study contributes to understanding of organizational sustainability efforts at the individual employee level of analysis, a conspicuously small part of the organizational research surrounding this topic.

Hedonic appraisal of apartments in Tirana

2016 ◽  
Vol 9 (2) ◽  
pp. 239-255 ◽  
Author(s):  
Marsela Thanasi (Boçe)
Keyword(s):  
Real Estate ◽  
Reference Price ◽  
Market Price ◽  
Ordinary Least Squares ◽  
Hedonic Model ◽  
Marginal Effect ◽  
Pricing Model ◽  
Simple Method ◽  
Content Type ◽  
Property Valuation

Purpose The approved methodology of property valuation in Albania evaluates the reference property prices based on the average contractual price of properties sold and takes into account only factors such as price, square meters of living and location of property. Simple method is the one used on evaluating the reference price for a group of properties with similar characteristics. The purpose of this study is, by building a hedonistic pricing model for apartments in Tirana, to prove empirically that in addition to location, there are other characteristics that affect the value of apartments. Design/methodology/approach The capital city is chosen as a case study for the construction of a hedonistic pricing model. In the database were included detailed characteristics of 1,421 apartments. Multiple regression analysis was chosen in this model as a method to test hypotheses about the causal relationship between house value Y and independent variables XS, representing the characteristics of the property. Population equation parameters β0, β1, β2 […], βn. were evaluated by the ordinary least squares method. Selection of α-standard is 5 per cent, taking into account the significant number of observations and the degree of regression freedom. Findings Based on this study, it was proved empirically that the characteristics of the apartments as square meters of living, number of rooms, access to parking, furniture, view and surface of living affect their price. As a literature review showed, location is the most important variable that affects the value. Results showed that the marginal effect that the number of rooms has on the apartment value depends on the square meters of living of the apartment. In the same line, the effect of the square meters of living on value depends on the square meters, as the relationship between these variables is nonlinear and depends more on the number of rooms. Research limitations/implications It was impossible to find the information on property sales contracts. That is why this study was oriented toward the market and took into account the properties offered for sale at one of the biggest real estate agency “Çelësi”. More accurate information regarding properties characteristics could be obtained. The information was limited and depended on the best apartment characteristics that potential sellers wanted to advertise. On the other side, contractual sales price is oriented by the reference price, so, the applied methodology has resulted in better evaluations of real estate prices, which reflect the market price. Practical implications This study is conducted as an applicable research. After analyzing the property valuation system in Albania, the study recommends the change of the method used on apartment valuation. Improvement of the property valuation system requires first of all creation of a complete and updated database for all real estate sales. Social implications Property valuation is a very important function of the land administration system which directly affects people’s life. Property evaluation for different purposes like tax evaluation, compensation and expropriation is a process that must be designed using an equal, transparent and well-accepted methodology by all. Promotion of property valuation system development is helpful to various interest groups in society, as it can reduce the risk of investment in this sector and encourages lower rates of interest on loans. Originality/value To the author's knowledge, the hedonic model is not applied on the Albanian housing market, thus providing encouragement to deepen the study in this regard. The study is original and has a very important impact on policymakers to change the actual property valuation methodology to obtain more accurate property values.

Calibration of impact of attributes in the real estate mass appraisal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Krzysztof Dmytrów ◽  
Wojciech Kuźmiński
Keyword(s):  
Real Estate ◽  
Design Methodology ◽  
Hybrid Approach ◽  
Calibration System ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Hybrid Approaches ◽  
Residential Properties ◽  
Statistical Approaches

PurposeOur research aims in designation of a hybrid approach in the calibration of an attribute impact vector in order to guarantee its completeness in case when other approaches cannot ensure this.Design/methodology/approachReal estate mass appraisal aims at valuating a large number of properties by means of a specialised algorithm. We can apply various methods for this purpose. We present the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA) and the four methods of calibration of an attribute impact vector. Eventually, we present its application on the example of 318 residential properties in Szczecin, Poland.FindingsWe compare the results of appraisals obtained with the application of the hybrid approach with the appraisals obtained for the three remaining ones. If the database is complete and reliable, the econometric and statistical approaches could be recommended because they are based on quantitative measures of relationships between the values of attributes and properties' unit values. However, when the database is incomplete, the expert and, subsequently, hybrid approaches are used as supplementary ones.Originality/valueThe application of the hybrid approach ensures that the calibration system of an attribute impact vector is always complete. This is because it incorporates the expert approach that can be used even if the database excludes application of approaches that are based on quantitative measures of relationship between the unit real estate value and the value of attributes.

Distance in geographic and characteristics space for real estate pricing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Evgeniy M. Ozhegov ◽  
Alina Ozhegova
Keyword(s):  
Real Estate ◽  
Explanatory Power ◽  
Price Transmission ◽  
Hedonic Price ◽  
Content Type ◽  
Geographic Space ◽  
Residential Properties ◽  
Clustering Approach ◽  
Real Estate Prices ◽  
Automated Valuation

PurposeA common approach to predicting the price of residential properties uses the hedonic price model and its spatial extensions. Within the hedonic approach, real estate prices are decomposed into internal characteristics of an apartment, apartment characteristics and external characteristics. To account for the unobserved quality of the surrounding environment, price models include spatial price correlation factors, where the distance is usually measured as the distance in geographic space. In determining the price, a seller focuses not only on the observed and unobserved factors of the apartment and its environment but also on the prices of similar marketed objects that can be selected both by geographic proximity and by characteristics similarity. The purpose of this study is to show the latter point empirically. Design/methodology/approachThis study uses an ensemble clustering approach to measure objects' proximity and test whether the proximity of objects in the property characteristics space along with spatial correlation explain the significant variation in prices. FindingsIn this paper, the pricing behaviour of sellers in a reselling market in Perm, Russia is studied. This study shows that the price transmission mechanism includes both geographic and characteristics spaces. Practical implicationsAfter testing on market data, the proposed framework for the distance construct could be used to obtain higher predictive power for price predictive models and construction of automated valuation services. Originality/valueThis study tests the higher explanatory power of the model that includes both the distance measured in geographic and property characteristics spaces.

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