scholarly journals A Multi-Attribute Sales Comparison Method for Real Estate Valuation

2019 ◽  
Vol 28 (1) ◽  
pp. 1-11
Author(s):  
András Farkas ◽  
Bogdan Porumb
Keyword(s):  
Real Estate ◽  
Comparison Method ◽  
Theory And Practice ◽  
Distance Functions ◽  
Hedonic Price ◽  
Property A ◽  
Index Method ◽  
Valuation Method ◽  
Real Estate Valuation ◽  
Metric Distance

The theory and practice of real-estate valuation has attracted immense interest over the past decades. This paper is concerned with the sales comparison approach. First, a brief survey of some procedures used worldwide, the sales comparison by adjustments, the hedonic regression and the hedonic price index method, is presented. To improve the versatility of property appraisals a new valuation method, as a combination of multi-objective optimization (MOO) and multi-criteria decision analysis (MCDA) is developed. A unique feature of this model is that it enables the appraiser to evaluate the characteristics of a property on those scales of measurement to which they belong de facto. To comply with this objective, distinct metric distance functions on each scale of measurement, including the two qualitative scales (nominal and ordinal), are employed. After that, the physical worth of a property is derived as a weighted sum of the composite scores. This can be measured on an interval scale. To predict the monetary worth of a property, a simple linear regression model is developed. The benefits of the use of this multi-attribute valuation method is also discussed. A comprehensive real-world study showing the application of the procedure is included.

scholarly journals ANALYSIS OF INSTALLATION OF MARKET VALUE OF LAND INDUSTRY OF INDUSTRIAL PRODUCTION

2018 ◽  
pp. 88-93
Author(s):  
A.Yu. Palamar ◽  
Ya.V. Osipenko
Keyword(s):  
Real Estate ◽  
Social Life ◽  
Residential Buildings ◽  
Technical Condition ◽  
Commercial Real Estate ◽  
Theory And Practice ◽  
Practical Application ◽  
Distribution Method ◽  
The Real Estate ◽  
Real Estate Valuation

Purpose: 1) to study the concept of wear in the theory of valuation of real estate; 2) analyze the main types of wear and methods of their assessment; 3) to analyze the requirements for the procedure for determining the technical condition of residential buildings when planning and designing repairs; 4) analysis of the reconstruction and technical inventory of the commercial real estate object; 5) in the given example, determine the accumulated depreciation of the real estate by the method of partitioning. Methodology. Many different methods of estimating the value of real estate have been developed, which shows the importance of this task. However, the practical application of existing techniques is problematic. Most of them follow the international practice of evaluation without taking into account the specifics of legislation and the existing conditions of the economic, urban, political and social life of Ukraine. Findings. Thus, the development of the theoretical foundations of real estate valuation, the improvement of its methods, and the implementation of applied research seem rather relevant and practically significant for land management of settlements. Originality consists in the following: the analysis of the best and most efficient use of the land plot; the calculation of the value of the object of valuation by three independent methods of valuation has been made, namely: the method of taking losses into land improvements; income distribution method; the method of comparing the prices of sales of real estate. Practical value. To date, the situation of the domestic assessment school should be considered as being in the period of formation. A large number of modern methodological developments are based on the theory and practice of assessing foreign developments. Many different methods of estimating the value of real estate have been developed, which shows the importance of this task. However, the practical application of existing techniques is problematic. Most of them follow the international practice of evaluation without taking into account the specifics of legislation and the existing conditions of the economic, urban, political and social life of Ukraine. Keywords: estimation, real estate, tax, rent, foreign experience, land market, land payments

scholarly journals INCOME APPROACH AND PROPERTY MARKET CYCLE

2015 ◽  
Vol 19 (3) ◽  
pp. 207-219 ◽  
Author(s):  
Maurizio D’AMATO
Keyword(s):  
Real Estate ◽  
Academic Research ◽  
Real Estate Market ◽  
Property Market ◽  
The Real Estate ◽  
Real Estate Bubble ◽  
Valuation Method ◽  
Real Estate Valuation ◽  
Income Approach ◽  
Valuation Process

This paper is focused on a proposed valuation method including real estate market cycle analysis in real estate valuation process. Starting from early works on this field (d'Amato 2003) the work highlight the dangerous gap between academic research on property market cycles and professional practice of property valuation. The danger of this gap comes from the fact that in spite it is well documented that the property market has a “natural” cyclical behaviour, the opinions of value based on income approaches still relies on assumption of a stable or perpetually growing (or decreasing) income. This may be one generating factors of the real estate bubble and the subsequent financial markets crisis experienced recently. This paper offers a general introduction on cyclical capitalization as a further family of valuation methodologies based on income approach. This method includes in the traditional Dividend Discount Model more than one g-factor in order to plot property market cycle. An empirical application of Cyclical Capitalization is offered to the office market of the Eastern London.

A survey of property valuation approaches in Nigeria

2016 ◽  
Vol 34 (5) ◽  
pp. 364-380 ◽  
Author(s):  
Rotimi Boluwatife Abidoye ◽  
Albert P.C. Chan
Keyword(s):  
Real Estate ◽  
Nationwide Survey ◽  
Comparison Method ◽  
Hedonic Pricing ◽  
Traditional Methods ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Frequency Of Use ◽  
Real Estate Valuation

Purpose The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose of this paper is to investigate the extent to which real estate valuers practicing in Nigeria are aware and use these advanced approaches in real estate valuation practice. Design/methodology/approach Both traditional and advanced approaches were identified from the literature. An online-based questionnaire survey was administered on estate surveyors and valuers to measure their level of awareness and frequency of use of the identified valuation approaches. The feedback was collated and analyzed using descriptive statistical analysis. Findings The professionals are mostly aware of the traditional methods and always use the “sales comparison method” in practice. In contrast, they are not very aware of the advanced approaches and hence, only use the hedonic pricing model occasionally in practice. Research limitations/implications The study only focuses on the Lagos metropolis, a nationwide survey will produce more comfortable generalizable findings. Practical implications This is a wake-up call for the real estate regulatory bodies and indeed all the real estate professionals in Nigeria to embrace the use of the advanced valuation approaches in practice, in order to remain relevant in the international real estate practice. Originality/value Implementation of the recommendations of this study could help position the Nigerian real estate professionals and the industry for a global exposition.

Real Estate Valuation use in Urban Transformation Projects

2015 ◽  
Author(s):  
Mehmet Levent ◽  
Semih Adil ◽  
Ayse Gokbayrak
Keyword(s):  
Real Estate ◽  
Urban Transformation ◽  
Real Estate Valuation
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