Abstract
PurposeThe traditional models of real estate market have several sources of imprecision, such as transitions between submarkets, generating difficulties in property valuation. The purpose of this paper is to examine an alternative to improve mass appraisal models, using fuzzy rules.Design/methodology/approachFuzzy rule‐based systems (FRBS) are able to generate flexible systems and may be useful in considering vagueness or imprecision presents in real estate market. An application to the housing market of Porto Alegre (Brazil), with more than 30,000 apartments, transacted in 1998‐2001, illustrates the fuzzy system, comparing with traditional hedonic regression model.FindingsThe results have indicated the potential of fuzzy rules to use in mass appraisal.Originality/valueThis paper presents a procedure to develop mass appraisal models using FRBS.
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