Abstract
Abstract Determining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.
Highlights
Real estate market analysis, describing real estate and their attributes is often associated with operating qualitative or quasi-quantitative features
The purpose of the article is to present ways of using statistical methods to calculate the weight of property characteristics and their impact on its value, and to indicate the best relationship factor and weighting method, so that the obtained property values are as close as possible to the value of real estate received in individual valuations of property appraisers
Statistical methods can be used in the real estate valuation process
Summary
Real estate market analysis, describing real estate and their attributes is often associated with operating qualitative or quasi-quantitative (ordinal) features. This type of feature is most often presented in verbal form, which describes the condition of the feature (e.g. the purpose of the property: housing, recreation, agricultural, industrial) or allows us to rank variants of the feature from the smallest to the largest, from the weakest to the strongest (e.g. neighborhood: unfavorable, average, favorable). In the case of real estate market analysis, real estate features (attributes) are most often ordinal features, and the collected data is ordered in statistical series. There are a number of statistical measures that can be used to analyze interdependence for such a set of data
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