scholarly journals Analytical Method for Correction Coefficient Determination for Applying Comparative Method for Real Estate Valuation

2020 ◽  
Vol 28 (2) ◽  
pp. 52-62
Author(s):  
Valentas Gružauskas ◽  
Andrius Kriščiūnas ◽  
Dalia Čalnerytė ◽  
Valentinas Navickas
Keyword(s):  
Real Estate ◽  
Analytical Method ◽  
Comparative Method ◽  
Correction Coefficient ◽  
Real Estate Valuation ◽  
Machine Learning Approach ◽  
Price Estimation ◽  
Macroeconomic Indicators ◽  
Alternative Research

AbstractReal estate valuation uses 3 main approaches: income, cost and comparative. When applying the comparative method, correction coefficients based on similar real estate transactions are determined. In practice, the coefficients and similar real estate objects are usually determined by using qualitative approach based on the valuators’ experience. The paper provides an analytical method for the determination of correction coefficient, which limits subjectivity when using the comparative method for valuation. The provided analytical approach also integrates macroeconomic indicators in the calculation process. It also addresses issues when available historical real estate transaction data is limited. A machine learning approach was applied to determine the average price of real estate in the region, with the possibility of using this information to obtain correction coefficients where historical data was unavailable. Alternative research usually focuses on final price estimation of the selected real estate object; however, the valuation standard of Tegova released in 2018 does not allow for applying analytically based approaches for individual real estate object evaluation; these approaches can be used only as a supportive tool for valuators.

scholarly journals Applying Comparable Sales Method to the Automated Estimation of Real Estate Prices

2020 ◽  
Vol 12 (14) ◽  
pp. 5679 ◽  
Author(s):  
Yunjong Kim ◽  
Seungwoo Choi ◽  
Mun Yong Yi
Keyword(s):  
Real Estate ◽  
Traditional Approach ◽  
Housing Prices ◽  
Capital City ◽  
Housing Type ◽  
Residential Housing ◽  
Machine Learning Approach ◽  
Price Estimation ◽  
Real Estate Prices ◽  
Current Price

In this paper, we propose a novel procedure designed to apply comparable sales method to the automated price estimation of real estates, in particular, that of apartments. Apartments are the most popular residential housing type in Korea. The price of a single apartment is influenced by many factors, making it hard to estimate accurately. Moreover, as an apartment is purchased for living, with a sizable amount of money, it is mostly traded infrequently. Thus, its past transaction price may not be particularly helpful to the estimation after a certain period of time. For these reasons, the up-to-date price of an apartment is commonly estimated by certified appraisers, who typically rely on comparable sales method (CSM). CSM requires comparable properties to be identified and used as references in estimating the current price of the property in question. In this research, we develop a procedure to systematically apply this procedure to the automated estimation of apartment prices and assess its applicability using nine years’ real transaction data from the capital city and the most-populated province in South Korea and multiple scenarios designed to reflect the conditions of low and high fluctuations of housing prices. The results from extensive evaluations show that the proposed approach is superior to the traditional approach of relying on real estate professionals and also to the baseline machine learning approach.

scholarly journals Application of Multivariate Time Series Cluster Analysis to Regional Socioeconomic Indicators of Municipalities

2021 ◽  
Vol 29 (3) ◽  
pp. 39-51
Author(s):  
Valentas Gružauskas ◽  
Dalia Čalnerytė ◽  
Tautvydas Fyleris ◽  
Andrius Kriščiūnas
Keyword(s):  
Time Series ◽  
Economic Development ◽  
Real Estate ◽  
Comparative Method ◽  
Multivariate Time Series ◽  
Principal Component ◽  
Distance Matrix ◽  
Socioeconomic Indicators ◽  
Real Estate Valuation ◽  
Socio Economic Development

Abstract The socio-economic development of municipalities is defined by a set of indicators in a period of interest and can be analyzed as a multivariate time series. It is important to know which municipalities have similar socio-economic development trends when recommendations for policy makers are provided or datasets for real estate and insurance price evaluations are expanded. Usually, key indicators are derived from expert experience, however this publication implements a statistical approach to identify key trends. Unsupervised machine learning was performed by employing K-means clusterization and principal component analysis for a dataset of multivariate time series. After 100 runs, the result with minimal summing error was analyzed as the final clusterization. The dataset represented various socio-economic indicators in municipalities of Lithuania in the period from 2006 to 2018. The significant differences were noticed for the indicators of municipalities in the cluster which contained the 4 largest cities of Lithuania, and another one containing 3 districts of the 3 largest cities. A robust approach is proposed in this article, when identifying socio-economic differences between regions where real estate is allocated. For example, the evaluated distance matrix can be used for adjustment coefficients when applying the comparative method for real estate valuation.

scholarly journals Application of AHP Method in Assessment of the Influence of Attributes on Value in the Process of Real Estate Valuation

2019 ◽  
Vol 27 (4) ◽  
pp. 15-26
Author(s):  
Krzysztof Dmytrów ◽  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Real Estate Market ◽  
Comparative Approach ◽  
Ahp Method ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Valuation ◽  
The Impact ◽  
Hierarchy Process

Abstract Property valuation in the comparative approach requires the determination of the impact of market characteristics on the formation of prices on the local real estate market. Valuers have a variety of methods for determining weights. Some of them require the collection of a sufficiently large database of information on transactions. However, this is not always possible. In the absence of sufficient data, alternative approaches, including an expert approach, may be used. The goal of the article is the proposal of an expert approach at the stage of assessing the influence of attributes on the value of the real estate. The AHP (Analytical Hierarchy Process) method will be used. On its basis, pairwise comparisons of the importance of attributes will be done by experts (valuers). By means of the AHP method, the weights of each attribute will be obtained and, subsequently, the influence of each attribute on the real estate value will be assessed. Research will be done on the basis of 318 real estates in Szczecin.

scholarly journals Analysis on Effect of COVID -19 on Property Valuation in Real Estate Market

2021 ◽  
Vol 9 (12) ◽  
pp. 1467-1473
Author(s):  
Urmika Vishwakarma
Keyword(s):  
Real Estate ◽  
Swot Analysis ◽  
Real Estate Market ◽  
Real Property ◽  
Property Valuation ◽  
Real Estate Valuation ◽  
Wide Range ◽  
Central Tenet ◽  
Investment And Financing

Abstract: The valuation of real estate is a central tenet for all businesses. Land and property are factors of production and, as with any other asset, the value of the land flows from the use to which it is put, and that in turn is dependent upon the demand (and supply) for the product that is produced. Valuation, in its simplest form, is the determination of the amount for which the property will transact on a particular date. However, there is a wide range of purposes for which valuations are required. These range from valuations for purchase and sale, transfer, tax assessment, expropriation, inheritance or estate settlement, investment and financing. The objective of the paper is to provide a brief overview of the methods used in real estate valuation. Valuation methods can be grouped as traditional and advanced. The traditional methods are regression models, etc. MRA has been implemented by many researchers to study valuation of real property cite that MRA is possible for coefficient estimates and factor weightings using a large number of actual sale cases. Keywords: Real property, property valuation, multiple regression analysis, SWOT Analysis

scholarly journals The Issues of Real Estate Valuation in the Process of Privatization

2017 ◽  
Vol 5 (1) ◽  
pp. 201-208
Author(s):  
Levan Kalandadze
Keyword(s):  
Real Estate ◽  
Early Stage ◽  
Market Value ◽  
The State ◽  
Soviet System ◽  
Real Estate Valuation ◽  
Privatization Process ◽  
Production Facilities

Abstract The process of privatization in our country was characterized and unfortunately is still characterized by very important difficulties. The purpose of the research is to analyze the issues of real estate valuation in the process of privatization. In Georgia, the privatization process began after dissolution of the Soviet system. It should be noted that the process of privatization is of particular importance in terms of activation of investment activities in the country. In this regard, privatization can be considered one of the essential and most important incentives for attracting investments by the state. Currently, thousands of enterprises have already been privatized, but there are still quite many stateowned production facilities and property. Determination of the market value of the items of state-owned property is especially important when selling them at auctions or on competitive basis. In addition, one of the causes for incompetent privatization of the state-owned property at the early stage is disregard of the institute of appraisers of movable and immovable property, who did not participate in determining the market value of the property and in the privatization process. The information assessment, analysis, comparison and generalization, as well as systematic, quantitative, qualitative and logical generalization methods are used in the article.

scholarly journals Conditional Model of Real Estate Valuation for Land Located in Different Land Use Zones

2018 ◽  
Vol 26 (1) ◽  
pp. 122-130 ◽  
Author(s):  
Agnieszka Bieda
Keyword(s):  
Land Use ◽  
Real Estate ◽  
Land Uses ◽  
Conditional Model ◽  
The Real ◽  
The Real Estate ◽  
Transaction Prices ◽  
Real Estate Valuation

Abstract* Real estate valuation is carried out correctly if it takes into account all the conditions occurring on a given market at the time of its performance. One of the important determinants of correct valuation is the proper determination of the land use class of the property being valued. It is equally important to find similar properties with the same land use classes as the property subjected to valuation. This does not pose a problem when a property is located within an area with one specific land use zone. If, however, its land use zoning is not homogeneous, finding similar properties may be difficult. If those contained in the database of comparable properties differ from the real estate being valued with regard to land uses of individual areas or proportions of areas with a specific use, it is suggested to divide transaction prices obtained for the whole property into components of those prices that correspond to the fragments of this property with specific land uses. In this paper, the conditional model has been used for this purpose.

Determination of Zn in Dry Feeds for Cats and Dogs by Energy-Dispersive X-Ray Fluorescence Spectrometry

2016 ◽  
Vol 99 (6) ◽  
pp. 1572-1575 ◽  
Author(s):  
Dayara Virgínia L Ávila ◽  
Sidnei O Souza ◽  
Silvânio Silvério L Costa ◽  
Rennan Geovanny O Araujo ◽  
Carlos Alexandre B Garcia ◽  
...  
Keyword(s):  
Confidence Level ◽  
Analytical Method ◽  
Inductively Coupled Plasma ◽  
Comparative Method ◽  
Direct Analysis ◽  
Energy Dispersive ◽  
Emission Spectrometry ◽  
Icp Oes ◽  
X Ray

Abstract This work describes an analytical method for Zn determination in dry feeds for cats and dogs by energy-dispersive X-ray fluorescence (EDXRF). Samples of dry feed were powdered and prepared in the form of pellets for direct analysis by EDXRF. The LOQ (10σ) was 0.4 mg/kg. The samples were also analyzed by inductively coupled plasma-optical emission spectrometry (ICP-OES) as an independent comparative method. Application of a paired t-test showed no significant differences between Zn concentrations obtained by EDXRF and ICP-OES (at a 95% confidence level). Analysis of variance was also applied to the results and revealed no significant differences between the two techniques (at a 95% confidence level). The precision, expressed as the RSD (n = 3), was RSD < 4.55%. This analytical method provides a simple, rapid, accurate, and precise determination of Zn in dry feeds for cats and dogs by EDXRF as direct, solid-sample analysis.

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