Abstract
Abstract In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process (property market value prediction itself) was raised in this article. The need for the consideration of an ontologically perceived, particular element of the real estate market with its distinctive characteristics indicates the specific nature of the interpretation of the data which may be used in the appraisal process. Therefore, a new shape of the property value model, based on LSM, was presented. It takes into account a specific description of the appraised property. Thus, the factor of dissimilarity between sold properties used in creating the value model and the appraised property was used in its coefficient matrix. The new model clearly shows the advantages and disadvantages of the dissimilarities between sold properties used in creating the coefficient matrix of the value model.
Highlights
Real estate is, in economy, a crucial part of real property
The complete reference list is too long to quote in total here, and only a few milestone positions can be mentioned (SHENKEL, EIDSON 1971; SKAFF 1975; TCHIRA 1979; ALBRITTON 1982; SHLAES 1984; ISAKSON 1986; THOMPSON, GORDON 1987; PETO et al 1996; MCCLUSKEY, BORST 1997; PAGOURTZI et al 2003; FRENCH 2003; FRENCH 2004; D'AMATO, KAUKO 2017)
If one is interested in general research on some market phenomena, but wants to obtain a very real answer in a specific case of real estate value, attention is drawn to the end of the procedure described above
Summary
Real estate (the land and all improvements affixed permanently to it, as well as proper appurtenances associated with it) is, in economy, a crucial part of real property (understood as a set of rights, interests, benefits and encumbrances). Real estate valuation is very important to all participants of the market (buyers and sellers, owners and investors, creditors, supervisors and tax offices). New points of view on valuation are still emerging. “some institutions consider AVM assisted valuation more reliable than valuation in person”; the valuers’ community distinguishes between two notions: “estimation of value” and ”opinion of value” (D'AMATO, KAUKO 2017), and reconsiders the question of similarity in valuation tasks (MCCLUSKEY, BORST 2017; JANSEN VAN VUUREN 2017). This paper aims to show some benefits of the identification of similarities and dissimilarities between relevant properties and sold properties considered for the purposes of a market price modelling process. REAL ESTATE MANAGEMENT AND VALUATION, eISSN: 2300-5289 vol 27, no. REAL ESTATE MANAGEMENT AND VALUATION, eISSN: 2300-5289 vol 27, no. 3, 2019 www.degruyter.com/view/j/remav
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
