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.

scholarly journals APPLICATION OF METHOD OF MULTIPLE CRITERIA ANALYSIS FOR ESTABLISHING VALUE/DAUGIAKRITERINĖS NEKILNOJAMOJO TURTO ANALIZĖS VERTĖS NUSTATYMO METODAS IR JO TAIKYMAS

2000 ◽  
Vol 6 (5) ◽  
pp. 295-306 ◽  
Author(s):  
Vida Malienė ◽  
Artūras Kaklauskas ◽  
Edmundas Kazimieras Zavadskas
Keyword(s):  
Real Estate ◽  
Competitive Ability ◽  
Market Price ◽  
Multiple Criteria ◽  
Multiple Criteria Analysis ◽  
Real Case ◽  
Sample Problem ◽  
Value Analysis ◽  
Property Valuation ◽  
Valuation Method

Multiple criteria analysis presented in this paper for property valuation may be used to the advantage of various interested parties. 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 can use it for determining 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 applied. To show its efficiency, the solution of a sample problem representing a real case is provided.

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.

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 ABOUT THE LIMITATION OF USE OF THE COST APPROACH FOR PRICE FORMING IN HOUSING MARKET

2018 ◽  
pp. 61-69
Author(s):  
I. I. Ivasiv ◽  
M. O. Danyliuk
Keyword(s):  
Real Estate ◽  
Price Policy ◽  
Real Estate Market ◽  
Policy Formation ◽  
Pricing Policy ◽  
Cost Approach ◽  
Advantages And Disadvantages ◽  
Real Estate Valuation ◽  
New Construction ◽  
The Cost

A number of technical and economic features affecting pricing in buildingproduction, determine the methods specifics for determining prices of construction products. Intoday's conditions of building market relations the most widespread is a cost approach to theprices formation in the residential real estate market, which, together with the significantadvantages, has a number of shortcomings, which indicate the limited use of it, namely: theunreliability of reflecting the projected income value; the problem of calculating the cost of oldbuildings reproduction; the complexity of determining the value of accumulated old buildingsdepreciation; a separate assessment of the land plot from the buildings; the discrepancy betweenthe cost of the acquisition of the estimated property object costs for the new construction ofexactly the same object.The article deals with the processes of price policy formation at the building industryenterprises with the purpose of improving their competitiveness. The peculiarities of costlymethods use of real estate valuation, their advantages and disadvantages are revealed. The mainfactors influencing formation of the pricing policy of building industry enterprises are analyzed.It is proved that a cost approach is appropriate to apply for new construction analysis, forthe identification of various options for land use, for assessment for tax purposes, insurance,consequences of natural disasters and, if necessary, assessment of special buildings andstructures.

Real Estate Valuation Methods

2021 ◽  
pp. 237-253
Author(s):  
Jan Wilcox ◽  
Jane Forsyth
Keyword(s):  
Real Estate ◽  
Valuation Methods ◽  
Real Estate Valuation

scholarly journals Adjustment of comparison objects by processing of large amounts of cadastral data

2020 ◽  
Vol 17 (3) ◽  
pp. 208-220
Author(s):  
M. B. Laskin ◽  
◽  
L. B. Dampilon ◽  
Keyword(s):  
Growth Rate ◽  
Real Estate ◽  
Rate Of Change ◽  
Small Samples ◽  
Comparative Approach ◽  
Two Dimensional ◽  
Residential Real Estate ◽  
Market Data ◽  
Adjustment Method ◽  
Real Estate Valuation

The article proposes an adjustment method of comparison objects in the comparative approach to real estate valuation, based on the comparison of clusters of different groups of real estate objects formed by price-forming factors and the rate of change between the dates of cadastral valuation. Price-forming factors are divided into qualitative and continuous ones. The division of objects into clusters is carried out according to the growth rate in the period between cadastral valuation and to the qualitative factors. Then, in each cluster, two-dimensional distributions of cadastral values and the resulting dependencies of the changed cadastral value on continuous price-forming factors are considered. The proposed method makes it possible to adjust the objects of comparison of market data (including for small samples), based on the data of cadastral accounting of two periods. These examples are based on a comparison of cadastral valuation results of residential real estate in St. Petersburg in 2015 and 2018.

scholarly journals Practical Approaches to Improving the Valuation of Territorial Communities Property

2021 ◽  
Vol 26 (1) ◽  
pp. 147-151
Author(s):  
Liliia Tymoshchyk ◽  
Keyword(s):  
Real Estate ◽  
Asset Management ◽  
Management System ◽  
Local Community ◽  
Free Market ◽  
Effective Management ◽  
Property Valuation ◽  
Public Property ◽  
Real Estate Valuation ◽  
Property Assessment

Abstract. Introduction. The years of independence in Ukraine, which were marked by the establishment of a system of free market relations in the economy, were reflected, in particular, in the system of territorial governance. Many processes that were not present in the system of public property management, or were not considered important, now occupy a significant place in the process of effective management of municipal property - and the mechanism of property evaluation of the territorial community has become one of them. Purpose. The main purpose of the article is to study the priority areas for improving the efficiency of property valuation of territorial communities, in particular, real estate, in the modern economic system of Ukraine, as part of a system of effective management of public property. Results. The article considers a number of aspects that connect the system of community management in general and the mechanism of property assessment of territorial communities in particular. First of all, the priority measures of the management system, which require the creation of all conditions for the normal functioning of the community as a whole and each resident individually, have been analyzed, and the related concept of "maximum benefit" has been considered. An analysis of the views of various researchers on the characteristics and criteria for evaluating the activities of the management system and approaches to assessing the effectiveness of communal property, as relevant to assess the full value of the property of the local community. There are two levels of management system. The issues of effective real estate management have been considered and a number of concepts related to management in this area have been analyzed - "optimal use of real estate", "asset management" - and their significance in the context of the current economic and political situation has been analyzed. Conclusions. In the current economic situation and the tendency to change the size of territorial entities, when several different communities come together, the mechanism of property valuation of the territorial community becomes more common and acquires new importance in the management of public property. One of the main types of property valuation of a territorial community is real estate valuation, the importance of which grows with the number of property owners.

scholarly journals Automated Valuation Methods through the Cost Approach in a BIM and GIS Integration Framework for Smart City Appraisals

2020 ◽  
Vol 12 (18) ◽  
pp. 7546 ◽  
Author(s):  
Natale Arcuri ◽  
Manuela De Ruggiero ◽  
Francesca Salvo ◽  
Raffaele Zinno
Keyword(s):  
Real Estate ◽  
Information And Communication Technologies ◽  
Valuation Methods ◽  
Information Models ◽  
Real Estate Valuation ◽  
Interesting Possibility ◽  
Building Information ◽  
The One ◽  
Definition Of ◽  
Automated Valuation

The principle behind sustainable city movements is represented by the idea of “good living”, which is the possibility of having solutions and services that allow citizens to live in an easy, simple, and enjoyable way. Policies for urban quality play a central role in the slow cities manifesto, often suggesting the use of Information and Communication Technologies (ITC) in the development of interactive services for citizens. Among these, an interesting possibility is to offer citizens digital real estate consultancy services through the implementation of automated evaluation methods. An automated appraisal action—which is already complex in itself owing to the need to collect data in a consistent, standardized, but also differentiated way so as to require the adoption of real estate due diligence—collides on the operational level with the concrete difficulty of acquiring necessary data, much more so since the reference market is dark, atypical, and viscous. These operational difficulties are deepened by the epistemological nature of the appraisal discipline itself, which bases its methodology on the forecast postulate, recalling the need to objectify as much as possible the evaluation from the perspective of an intersubjective sharing argument. These circumstances have led, on the one hand, to the definition of internationally accepted uniform evaluation rules (IVS, 2017) and, on the other, to the testing of automated valuation methods aimed at returning computer-based appraisals (AVM). Starting from the awareness that real estate valuation refers essentially to information and georeferences, this paper aims to demonstrate how real estate appraisal analysis can be further improved through information technology (IT), directing real estate valuation towards objectivity in compliance with international valuation standards. Particularly, the paper intends to show the potential of combining geographic information systems (GISs) and building information models (BIMs) in automated valuation methods through the depreciated reproduction cost. The paper also proposes a BIM-GIS semi-automatic prototype based on the depreciated reconstruction cost through an experimentation in Rende (Italy).

scholarly journals Reproduction of Real Estate Valuation Methodology in Practice. An Attempt at Identifying Sources of Divergences

2014 ◽  
Vol 22 (2) ◽  
pp. 67-79 ◽  
Author(s):  
Ewa Kucharska-Stasiak
Keyword(s):  
Real Estate ◽  
Legal Regulations ◽  
Analysis Method ◽  
Practical Application ◽  
Case Study Method ◽  
Property Valuation ◽  
Real Estate Valuation ◽  
Valuation Methodology ◽  
The Difference

Abstract The objective of the study is to try and identify the reasons for the detachment of the valuation practice from its methodology. Two methods have been used in the paper: the analysis method and the case study method, under which fourteen property valuation reports posted on websites and two opinions about the property valuation prepared for court purposes in order to detect and identify sources of deviations from the valuation methodology have been analyzed. The study, besides theoretical aspects, includes references to practical application: pointing out directions of changes in legal regulations and national valuation principles, which should help achieve uniformity in interpreting the valuation concept, allowing the reduction of its uncertainty, understood as the uncertainty of a single valuation and uncertainty as the difference between valuations.

scholarly journals The Problem of Reflecting the Market in the Legal Principles of Real Estate Valuation in Poland. How to Eliminate the “Legal Footprint”?

2017 ◽  
Vol 25 (2) ◽  
pp. 44-57
Author(s):  
Jan Konowalczuk
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Market Development ◽  
Negative Effects ◽  
Legal Principles ◽  
Property Valuation ◽  
Real Estate Valuation ◽  
Valuation Methodology ◽  
Market Needs

Abstract This paper presents and subjects to criticism the current principles of real estate valuation, which were introduced in Poland in the 1990’s during the return to a market economy, under the conditions of an underdeveloped real estate market. Against the background of the hypothesis of institutional maladjustment of the methodology to the current level of real estate market development, the author assesses the imitative manner of creating the valuation methodology and its discontinuation in 1998, resulting from the introduction of rigid legal regulations, which have significantly limited the ability of ongoing adjustment of the methodology to the market needs. The paper deals with the problems of defining market value and classifying valuation. The author assumes that the appraisal regarding the market value should be based on a descriptive model of real estate valuation, which should make it possible to reflect the market. He draws attention to the negative effects of valuation methodology which prevents or hinders the mapping of the market in appraisal reports. He proposes a change in the order of the legal principles of property valuation, based on a hierarchical model consisting of three elements: the definition and interpretation of value, the market and the methods of valuation.

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