scholarly journals Forms and Effectiveness of the Client's Influence on the Market Value of Property - Case Study

2018 ◽  
Vol 26 (3) ◽  
pp. 82-92 ◽  
Author(s):  
Ewa Kucharska-Stasiak ◽  
Sabina Źróbek ◽  
Radosław Cellmer
Keyword(s):  
Statistical Analysis ◽  
Real Estate ◽  
Market Value ◽  
Ethical Standards ◽  
Gender And Age ◽  
Real Estate Valuation ◽  
Valuation Process ◽  
Survey Responses

Abstract Although real estate valuation is supposed to make the market transparent, it has been noted to be partial in many countries. Analysis of literature and results of the statistical analysis of survey responses of Polish property appraisers indicated that: Property valuers operate in an environment which exerts influence on the final result of valuation. The attempts of the client to influence the valuation process and their effectiveness do not depend on the gender and age of the property appraiser. The problem of valuation bias should be seen in the weakness of the system enforcing compliance with ethical standards, with this being an area which requires reinforcement in many countries.

scholarly journals Identification and Classification of Real Estate Features for the Purpose of an Algorithm-Based Valuation– Case Study within Szczecin

2019 ◽  
Vol 19 (2) ◽  
pp. 38-55
Author(s):  
Sebastian Kokot ◽  
Sebastian Gnat
Keyword(s):  
Statistical Analysis ◽  
Real Estate ◽  
Point Of View ◽  
Graphical Methods ◽  
Scientific Discussion ◽  
Valuation Process ◽  
Deductive Method ◽  
Research Criteria

Abstract Research background: The article discusses the issue of the identification and measurement of market characteristics of real estate for valuation purposes. This problem is the most difficult stage of the whole valuation process in terms of both a substantive, methodological and analytical basis. Goal: The aim of the research is to outline and explore on the basis of literature studies as well as developed problems to be solved in the process of mass valuation together with the presentation of an exemplary solution. Methodology: In the theoretical part a hypothetical-deductive method which consists of developing a certain hypothesis and deducing its consequences was applied. The empirical section uses the method of scientific discussion among scientists and practicing valuers and, for the presentation of the results; some graphical methods were used for a statistical analysis. Results: As a result of the conducted research, criteria to be used in identifying and classifying market characteristics for the purposes of valuation were identified and a set of market characteristics of properties was developed along with a method of identifying their states for the purposes of mass valuation. Novelty: The article proves that the problem of the identification and classification of market characteristics of real estate for valuation purposes is extremely important from the point of view of the valuation process and the results obtained as a result of it as well. In addition, for some features, it is proposed to develop special measures such as the plot shape attractiveness ratio. This meets the problem of the objective measurement of market features of real estate. In relation to other features, the legitimacy of the expert approach was pointed out.

scholarly journals Real Estate valuation and forecasting in non-homogeneous markets: A case study in Greece during the financial crisis

2018 ◽  
Vol 70 (10) ◽  
pp. 1769-1783 ◽  
Author(s):  
Antonios K. Alexandridis ◽  
Dimitrios Karlis ◽  
Dimitrios Papastamos ◽  
Dimitrios Andritsos
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Real Estate Valuation

scholarly journals Added value of sites suitable for sustainable office development

2021 ◽  
Vol 13 (2) ◽  
pp. 2465-2471
Author(s):  
Josef Kupec
Keyword(s):  
Real Estate ◽  
Free Market ◽  
Market Value ◽  
Commercial Real Estate ◽  
Added Value ◽  
The Real Estate ◽  
Real Estate Valuation ◽  
Valuation Methodology ◽  
The Impact ◽  
Office Development

Abstract Valuations of real estate are widely used for various purposes and it relied always upon the financial and other markets. Valuation methodology is based on the operation of the free market economy and the real estate properties. The issue of certified properties is relatively new in the field of real estate valuation and is not sufficiently explored. Certified buildings are preferred by major corporate tenants with international field of activity who often have ethical rules for sustainable development. Therefore, certified properties are attractive to international commercial real estate investors who have higher purchasing power and are willing to pay a higher purchase price. Sustainable property certification is an element affecting the market value of the property. The purpose of this presented research is to quantify the impact of property certification on the value of office properties in Prague and subsequently to determine the impact of sustainability certificates on the market value of the land by using basic valuation techniques. The outcome of the project could be used by real estate valuation experts as a guideline to consider the future project certification and its impact on the land market value.

scholarly journals Considerations for a Regression-Based Real Estate Valuation and Appraisal Model: A Pilot Study

2019 ◽  
Vol 8 (2) ◽  
pp. 99
Author(s):  
Shawn L. Robey ◽  
Mark A McKnight ◽  
Misty R. Price ◽  
Rachel N. Coleman
Keyword(s):  
Pilot Study ◽  
Real Estate ◽  
Market Value ◽  
Residential Real Estate ◽  
Independent Variables ◽  
Real Estate Valuation ◽  
Scientific Approach ◽  
Traditional Approaches ◽  
Different Characteristics ◽  
Total Market

This paper advocates a more scientific approach to residential real estate valuation as opposed to more traditional approaches, which are flawed for two main reasons: (1) appraiser judgements are almost exclusively used and (2) appraisers’ sample sizes are too small to provide adequate estimated values. By using a regression model, this paper explores the impacts of different characteristics on market value. Three hundred and fifteen properties in Evansville, Indiana, were analyzed testing twelve different variables. This model suggests that 91.8% of the total market value variation is explained by four independent variables. These findings provide evidence that multiple linear regression could be used to better predict a property’s value.

Real Estate Valuation Fraud

2015 ◽  
pp. 278-291
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Personal Gain ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Valuation ◽  
The Real Estate Market ◽  
Real Market

Valuation profession is a link between the borrower and the lender. Fraud is an intentional deliberate deception committed for illegitimate personal gain. There are several forms of real estate fraud, especially when the real estate market is facing a boom. The most widespread types of real estate fraud include the preparation of two sets of settlement statements, property flipping, and fraudulent qualifications. There are mainly three types of valuation to look out for. Valuation may be received from an unauthorized agency. Furthermore, a real valuation may be altered from the original to generate profit. Thirdly, intentional inflation of the value of a property will hide the real market value. It is usually difficult to spot real estate fraudulent activities, so deep investigations and professionalism is needed. This chapter explores real estate fraud.

Cyclical capitalization and lag vacancy

2017 ◽  
Vol 10 (2) ◽  
pp. 211-238 ◽  
Author(s):  
Maurizio d’Amato
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Property Market ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Valuation Process

Purpose This paper aims to propose a new valuation method for income producing properties. The model originally called cyclical dividend discount models (d’Amato, 2003) has been recently proposed as a family of income approach methodologies called cyclical capitalization (d’Amato, 2013; d’Amato, 2015; d’Amato, 2017). Design/methodology/approach The proposed methodology tries to integrate real estate market cycle analysis and forecast inside the valuation process allowing the appraiser to deal with real estate market phases analysis and their consequence in the local real estate market. Findings The findings consist in the creation of a methodology proposed for market value and in particular for mortgage lending determination, as the model may have the capability to reach prudent opinion of value in all the real estate market phase. Research limitations/implications Research limitation consists mainly in a limited number of sample of time series of rent and in the forecast of more than a cap rate or yield rate even if it is quite commonly accepted the cyclical nature of the real estate market. Practical implications The implication of the proposed methodology is a modified approach to direct capitalization finding more flexible approaches to appraise income producing properties sensitive to the upturn and downturn of the real estate market. Social implications The model proposed can be considered useful for the valuation process of those property affected by the property market cycle, both in the mortgage lending and market value determination. Originality/value These methodologies try to integrate in the appraisal process the role of property market cycles. Cyclical capitalization modelling includes in the traditional dividend discount model more than one g-factor to plot property market cycle dealing with the future in a different way. It must be stressed the countercyclical nature of the cyclical capitalization that may be helpful in the determination of mortgage lending value. This is a very important characteristic of such models.

scholarly journals A Mean-Variance Optimization Approach for Residential Real Estate Valuation

2021 ◽  
Vol 29 (3) ◽  
pp. 13-28
Author(s):  
Francisco Guijarro
Keyword(s):  
Real Estate ◽  
Programming Model ◽  
Adjustment Process ◽  
Optimization Approach ◽  
Variance Model ◽  
Comparison Model ◽  
Real Estate Valuation ◽  
The City ◽  
Mean Variance

Abstract This paper introduces a new approach to the sales comparison model for the valuation of real estate that can objectively estimate the coefficients associated with the explanatory price variables. The coefficients of the price adjustment process are estimated from the formulation of a quadratic programming model similar to the mean-variance model in the portfolio selection problem and are shown to be independent of the property to be valued. It is also shown that the sales comparison model should minimize the variance of the adjusted prices, and not their coefficient of variation as indicated by some national and international valuation regulations. The paper concludes with a case study on the city of Medellín, Colombia.

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