Evaluating the efficiency of factors influencing valuation of residential buildings: A priority weight-based model

Abstract

Valuation of buildings is an utmost complication for different socio-economic stakeholders in the building's buying and selling process. The traditional valuation approaches can vary because it depends on the evaluator's opinions. Also, existing approaches have not considered all the parameters and the interrelation between these parameters for their models. The objective of this study is to develop a priority weights-based rating model for the valuation of existing and new buildings. In this paper, the Fuzzy Analytical Hierarchy Process (FAHP) is used to develop a rating system to use in the valuation process of buildings. The complementary novelty of this paper is the inclusion of the primary principles of engineering, sustainability, and adaptability into the valuation process of a building. Further, the subjectivity of this model is eliminated by using numerical descriptors. The opinions of 100 experts were collected and averaged to develop this model, and the consistency ratio of the experts’ opinions was maintained at less than 10 %. Finally, the valuation of a residential building is performed as a case study to show the numerical possibilities of the proposed model. The proposed model can be used to evaluate existing and new residential buildings in property transactions, insurance purposes, taxation, and making investment decisions.