scholarly journals Market Value of Residential Property Using the Value Methodology: A Combined Approach

2020 ◽  
Vol 51 (1) ◽  
pp. 9-14
Author(s):  
István Hajnal
Keyword(s):  
Real Estate ◽  
Function Analysis ◽  
Hedonic Model ◽  
Professional Organizations ◽  
Residential Property ◽  
Professional Relationship ◽  
End User ◽  
A Value ◽  
Real Estate Valuation ◽  
Creative Construction

Real Estate Valuation and Value Methodology are two consultancy businesses that are similar in name. Both fields have a several decade-long long history, are subject to strict regulations and standards and have their practitioners integrated into prestigious professional organizations. That said, it is very difficult to identify any professional relationship between the two consultancy businesses, given the little overlap between the approaches used. To date, property consultants are yet to use the versatile toolkit of VM.This article presents a model that combines the hedonic analysis of Real Estate Valuation with the function analysis methods elaborated within VM. Previously resting on a strictly empirical basis, the hedonic model can thus incorporate a value driver vector constructed against end-user criteria, resulting in a more accurate methodology for the establishment of value. The approach described in this article can also be used for a more detailed analysis of other types of property. This article is is an extended version of a conference paper presented at Creative Construction Conference 2019 (Hajnal, 2019).

Boosted regression trees

2014 ◽  
Vol 19 (2) ◽  
pp. 152-167 ◽  
Author(s):  
William J. McCluskey ◽  
Dzurllkanian Zulkarnain Daud ◽  
Norhaya Kamarudin
Keyword(s):  
Real Estate ◽  
Regression Trees ◽  
Heterogeneous Data ◽  
Boosted Regression Trees ◽  
Categorical Variables ◽  
Percentage Error ◽  
Residential Property ◽  
Data Set ◽  
Content Type ◽  
Real Estate Valuation

Purpose – The purpose of this paper is to apply boosted regression trees (BRT) to a heterogeneous data set of residential property drawn from a jurisdiction in Malaysia, with the objective to evaluate its application within the mass appraisal environment in Malaysia. Machine learning (ML) techniques have been applied to real estate mass appraisal with varying degrees of success. Design/methodology/approach – To evaluate the performance of the BRT model two multiple regression analysis (MRA) models have been specified (linear and non-linear). One of the weaknesses of traditional regression is the need to a priori specify the functional form of the model and to ensure that all non-linearities have been accounted for. For a BRT model the algorithm does not require any predetermined model or variable transformations, making the process much simpler. Findings – The results show that the BRT model outperformed the MRA-specified models in terms of the coefficient of dispersion and mean absolute percentage error. While the results are encouraging, BRT models still lack transparency and suffer from the inability to translate variable importance into quantifiable variable effects. Practical implications – This paper presents a useful alternative modelling technique, BRT, for use within the mass appraisal environment in Malaysia. Its advantages include less intensive data cleansing, no requirement to specify the predictive underlying model, ability to utilise categorical variables without the need to transform them and not as data hungry, as for example, MRA. Originality/value – This paper adds to the knowledge in this area by applying a relatively new ML model, BRT to residential property data from a jurisdiction in Malaysia. BRT has shown promise as a strong predictive model when applied in other disciplines; therefore this research empirically tests this finding within real estate valuation.

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.

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

Overview of Tools for Increasing Effective Demand and Characteristics of Residential Property Buyers

2020 ◽  
pp. 3-9
Author(s):  
KHORKINA G.A. ◽  
◽  
BOGDANOVA Yu.N. ◽  
Keyword(s):  
Real Estate ◽  
Economic Situation ◽  
Residential Property ◽  
Housing Sector ◽  
Residential Real Estate ◽  
Economic Activities ◽  
Official Statistics ◽  
Effective Demand ◽  
Real Estate Developers ◽  
New Buildings

This paper is based on a study consisting of two semantic blocks. In the first block, the existing tools for increasing effective demand in the market of new buildings in Moscow are considered. The most popular tools for increasing effective demand are identified. The second block provides an overview of the characteristics of real and potential buyers of residential real estate in Moscow. Identifying the characteristics of real buyers is based on data published by analytical and consulting companies, as well as real estate developers. Identification of the characteristics of potential buyers was carried out on the basis of official statistics and information published by the Recruitment Agency. The analysis of the characteristics of buyers was carried out in the context of economic activities, in the context of specialization and qualifications, and the level of wages. The areas of employment, specialties are identified, and the level of wages of a person who is potentially more accessible to purchase housing is estimated. The number of people who, in accordance with the size of their salary, can buy housing in the property is estimated. As a result of the work, the expediency of analyzing the buyer’s portrait (including potential one) on a regular basis is justified in order to implement more flexible regulation of the housing sector, taking into account the needs of city residents and the socio-economic situation.

Comparative analysis of the real estate taxation basics in the Russian Federation and foreign countries

2018 ◽  
Vol 941 (11) ◽  
pp. 61-64
Author(s):  
A.M. Lelyuhina ◽  
М.V. Litvinenko ◽  
O.V. Miklashevskaya
Keyword(s):  
Real Estate ◽  
Russian Federation ◽  
Tax System ◽  
The Real Estate ◽  
Foreign Countries ◽  
Real Estate Valuation ◽  
Real Estate Tax ◽  
The Russian Federation ◽  
Rational Construction ◽  
The Uk

The current issues of reforming the current tax system in the Russian Federation in the context of the transition to determining the amount of real estate taxes based on the cadastral value of real estate objects are discussed. The decision on adopting elements of a tax system in practice should be scientifically and methodologically based. The rational construction of the tax system of Russia contributes to the study of foreign tax systems’ models. In the article, the systems for calculating real estate tax established in the foreign countries under consideration are highlighted. Everything is based on analyzing the practice of real estate valuation in the UK, France, Belgium, Latvia, Finland, USA and Chile. A comparison is made of the grounds for calculating the property tax, their distinctive features. The main approaches to determining the cadastral value taking place in the cadastral systems of foreign countries are summarized. The conducted studies provide grounds for identifying trends in real estate valuation, which are being introduced into modern Russian cadastral valuation practice.

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