"The future of valuation An integrated academic and practical view on the impact of digitalisation on real estate valuation"

2018 ◽  
Author(s):  
Matthias Kirsten ◽  
Florian Hackelberg
Keyword(s):  
Real Estate ◽  
Real Estate Valuation ◽  
The Future ◽  
The Impact

scholarly journals Analysis of the Impact of the Type of Sampling of Representative Properties on the Results of Mass Appraisal

2020 ◽  
Vol 20 (2) ◽  
pp. 152-167
Author(s):  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Random Sampling ◽  
Simple Random Sampling ◽  
Multiple Regression Model ◽  
Stratified Sampling ◽  
Sampling Errors ◽  
Real Estate Valuation ◽  
Simple Sampling ◽  
The Impact ◽  
Mean Square Errors

Abstract Research background: Mass valuation is a process in which many properties are valued simultaneously with a uniform approach. An example of a procedure used for mass real estate valuation is the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA), which can be developed into a multiple regression model. The algorithm is based on a set of drawn representative properties. This set determines, inter alia, the quality of obtained valuations. Purpose: The objective of the study is to verify the hypothesis whether changing the method of sampling representative properties from the originally used simple random sampling to stratified sampling improves the results of the SAREMA econometric variant. Research methodology: The article presents a study that uses two methods of representative properties sampling – simple random sampling and stratified sampling. Errors of the models of valuation created taking into account both methods of sampling and different number of representative properties are compared. A key aspect of the survey is the choice of a better sampling method. Results: The study has shown that stratified sampling improves valuation results and, more specifically, allows for lower root mean square errors. Stratified sampling yielded better results in the initial phase of the study with more observations, but reducing the percentage of strata participating in the draws, despite the increase in RMSE, guaranteed lower errors than the corresponding results based on simple sampling in all variants of the study. Novelty: The article confirms the possibility of improving the results of mass property valuation by changing the scheme of representative properties sampling. The results allowed for the conclusion that stratified sampling is a better way of creating a set of representative properties.

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 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 Spatial weight matrix impact on real estate hierarchical clustering in the process of mass valuation

2019 ◽  
Vol 10 (1) ◽  
pp. 131-151
Author(s):  
Sebastian Gnat
Keyword(s):  
Real Estate ◽  
Hierarchical Clustering ◽  
Information Entropy ◽  
Value Added ◽  
Weight Matrix ◽  
Spatial Constraints ◽  
Spatial Weight Matrix ◽  
Real Estate Valuation ◽  
Spatial Weight ◽  
The Impact

Research background: The value of the property can be determined on an individual or mass basis. There are a number of situations in which uniform and relatively fast results obtained by means of mass valuation undoubtedly outweigh the advantages of the individual approach. In literature and practice there are a number of different types of models of mass valuation of real estate. For some of them it is postulated or required to group the valued properties into homogeneous subset due to various criteria. One such model is Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA). When using this algorithm, the area to be valued should be divided into the so-called location attractiveness areas (LAZ). Such division can be made in many ways. Regardless of the method of clustering, its result should be assessed, depending on the degree of implementation of the adopted criterion of division quality. A better division of real estate will translate into more accurate valuation results. Purpose of the article: The aim of the article is to present an application of hierarchical clustering with a spatial constraints algorithm for the creation of LAZ. This method requires the specification of spatial weight matrix to carry out the clustering process. Due to the fact that such a matrix can be specified in a number of ways, the impact of the proposed types of matrices on the clustering process will be described. A modified measure of information entropy will be used to assess the clustering results. Methods: The article utilises the algorithm of agglomerative clustering, which takes into account spatial constraints, which is particularly important in the context of real estate valuation. Homogeneity of clusters will be determined with the means of information entropy. Findings & Value added: The main achievements of the study will be to assess whether the type of the distance matrix has a significant impact on the clustering of properties under valuation.

scholarly journals International Real Estate Review

2005 ◽  
Vol 8 (1) ◽  
pp. 95-109
Author(s):  
Che-Chun Lin ◽  
◽  
Ting-Heng Chu ◽  
Larry J. Prather ◽  
Perry Wang ◽  
...  
Keyword(s):  
Real Estate ◽  
Default Risk ◽  
Mortgage Default ◽  
Asian Countries ◽  
Dominant Form ◽  
Western Countries ◽  
The Future ◽  
Logistic Regressions ◽  
The Impact

We explore the effect of mortgage curtailment payments on subsequent default probabilities. Although curtailment is not popular in western countries, it is the dominant form of prepayment in Asia. Using more than 6 years of mortgage performance records from an Asian bank, we investigate the impact of curtailment payments on mortgage default risk. The results of logistic regressions reveal that the cumulative curtailment is the most significant factor in predicting the future default probabilities of a seasoned mortgage pool. Thus, mortgage modeling for Asian countries should be different from mortgage modeling for western countries.

scholarly journals Which Residential Clusters of Walkability Affect Future Population from the Perspective of Real Estate Prices in the Osaka Metropolitan Area?

2021 ◽  
Vol 13 (23) ◽  
pp. 13413
Author(s):  
Haruka Kato ◽  
Atsushi Takizawa
Keyword(s):  
Real Estate ◽  
Urban Areas ◽  
Structural Equation ◽  
Population Change ◽  
Equation Modeling ◽  
Walkability Index ◽  
The Future ◽  
Real Estate Prices ◽  
The Impact ◽  
Future Population

In Japan, where the population is declining and aging significantly, walkability has attracted attention as a way to improve residents’ lifestyles. Therefore, it is essential to identify the residential clusters where walkability improvement would contribute to the maintenance of the population in order to select urban areas for the implementation of walkable designs. This study aimed to identify the residential clusters in which walkability affects the future population from the perspective of real estate prices. The reason for focusing on real estate prices is that they are expected to be a confounding factor connecting walkability and the future population. The method we used was to analyze the structural equation modeling of the impact of walkability index, real estate prices, and future population change ratio. This analysis was based on the neighborhood association scale. This study clarified that effective residential clusters are the business center cluster and the sprawl cluster. In the business center cluster and the sprawl cluster, the price of apartments for sale is the real estate value, through which the walkability index positively impacts the future population change ratio. This means that it is expected to contribute to the maintenance of the future population through a combination of walkable designs and housing policies that encourage people to change their residence types to apartments for sale when rebuilding old building stock using the location optimization plan policy.

scholarly journals International Real Estate Review

2014 ◽  
Vol 17 (2) ◽  
pp. 137-156
Author(s):  
Michael J. Seiler ◽  
Keyword(s):  
Experimental Design ◽  
Real Estate ◽  
Property Values ◽  
Eminent Domain ◽  
Behavioral Approach ◽  
Residential Property ◽  
Real Estate Valuation ◽  
Just Compensation ◽  
Residential Property Values ◽  
The Impact

This study uses a behavioral approach to measure the impact of a partial eminent domain land taking (which affects easement rights and causes proximity damage) on residential property values. Existing appraisal methods are not suited to handle this type of unique valuation impact determination, yet diminution must be determined by the courts to establish proper "just compensation". To accomplish the quantification of damages, an experimental design is implemented that allows the market to voice its opinion of valuation impact through a mechanism other than direct comparable sales. Moreover, this behavioral methodology can and should be used in a number of additional real estate valuation applications.

scholarly journals USING SVR AND MRA METHODS FOR REAL ESTATE VALUATION IN THE SMART CITIES

2021 ◽  
Vol XLVI-4/W5-2021 ◽  
pp. 21-26
Author(s):  
A. U. Akar ◽  
S. Yalpir
Keyword(s):  
Real Estate ◽  
Smart Cities ◽  
Critical Role ◽  
Support Vector ◽  
The Real Estate ◽  
Market Values ◽  
Systems Model ◽  
Real Estate Valuation ◽  
Real Estate Management ◽  
The Impact

Abstract. Determination of real estate value plays a very critical role in economic development and basic needs of people. Increasing demand for real estate together with population growth is making it difficult to determine real estate value. In applications where real estate is the main subject, such as urban activities, smart cities and urbanization, urban information system and valuation systems, model-based value estimations are essential for effective land/real estate policy. The type of real estate and impact degree of features depending on the type should be known as well as value estimation. It will be beneficial to follow a method that both determines the real estate value and factor impact degree. With the studies to be carried out using such methods, both region-specific valuation models can be created and the model is established with the optimum variable. This paper aimed to determine real estate value by using Support Vector Regression (SVR) and Multi Regression Analysis (MRA) methods for effective real estate management. Besides, both methods were examined by revealing the impact degrees of features that affect the value. The methods were applied to 319 parcels in Konya. For each parcel, 31 land features and market values were collected. The parcel data collected since 2018 were included in the models. From the results, the RBF-SVR model reached the highest R2 value with 0.88, while the MRA model reached 0.86.

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