Estate Values Research Articles

Modified Pricing Model for Negotiation of Mortgage Valuation Between Estate Surveyors and Valuers and Their Clients

Negotiation is inevitable in every sphere of life. This has transcended conflicts to the business world that is already ensnared by the negotiation of fees charged clients by estate surveyors and valuers after handling valuation jobs. To curtail the indiscriminate negotiation that goes on to even ridiculous charges, this work aimed at determining an equilibrium pricing through a model using mortgage valuation that records the greatest valuation in Nigeria. The researchers opine that such valuation would be a guide establishing a flexible relationship between fees chargeable and fees payable between both parties. As such, a modified mathematical model was used to harmonize the connection between the estate valuers and client fees in Nigeria. Implications for practice and research were discussed.

A Study on the Influence of Corporate Real Estate and Firm Value in the Corporate Life Cycle

A Study on the Influence of Corporate Real Estate and Firm Value in the Corporate Life Cycle

Updating the Methodology of the Estimation of the Economic Efficiency of the Competitive Development Measures of Territories

As part of the accumulation of experience "outside the class" basis on PRUE together with the State Research and Design Institute for Urban Planning of the City of Moscow (SRDIUP), bachelors are involved in real projects in Moscow to gain professionals competencies in academic programs. The "SRDIUP" project (September - November 2018) which will be discussed is a solution to the problem of estimating the value of real estate according to the criteria for removal from speed public transport stations and landscaped areas with using statistical methods. Field research, collection and filtering of large amounts of information from the use of modern open data processing capabilities (Google tables, Google drive, MS Excel) is a large project, which was simultaneously worked on by 62 students of the 2nd year. The project results were adopted, approved and used by SRDIUP to update the existing methodology for assessing the economic efficiency of integrated development activities. This joint experience vividly represents a mutually beneficial cooperation between the University and the city planning department of the city of Moscow.

Análisis de precios hedónicos de viviendas

This paper presents a study about the housing pricing using hedonic modelling. The pricing models have several uses, such as determinate property taxes or to mortgage decision analysis. In the case of taxation, models must be broader, aiming at the evaluation of a set of housing units. It makes the work seem more complex. This issue is a barrier to widespread statistical inference in tax assessment, especially in small and medium-sized municipalities, which have fewer human resources. This paper presents a study in two medium-sized Brazilian cities, demonstrating the process of analysis and developing models to single-family properties. Data were collected on real estate agents and valuation reports. Statistical analysis allows finding the equations that best fitted observed data. Significance tests of variables and models were performed and indicated that the models have good explanation of prices. It can be concluded that these models could be used in evaluation with tax purposes

Improving the Equity Component of the Lagos State Land Use Charge (2018) for Enhanced Property Tax Yields

Property tax has remained a subject of recurrent debate amongst policy makers, scholars, public officials, real estate valuers, and other stakeholders, virtually everywhere over the years. The contention centres on issues such as the tax base, tax incidence, efficiency, and particularly, equity or fairness, among others. Qualities like ease of collection, difficulty of avoidance, accountability, and transparency etc., that ordinarily mark out property tax as a good tax in principle, are often compromised by controversial policies and mal-administration, particularly the latter. The new Lagos State Land Use Charge2018 (LUC, 2018) came into force effective January, 2018. Ina similar version that its immediate predecessor, the Land Use Charge2001 (LUC, 2001), attracted spontaneous and widespread protests on promulgation, the criticisms and protests that greeted the passage LUC (2018)has been vehement and remained unabated until the government was forced, like it did with the erstwhile law, to succumb to substantial but arbitrary reductions in rates and allowances across board (at two different times to date) but without a formal amendment to the law; an exact replica of what transpired under the erstwhile law and which opened it to abuse and arbitrary implementation with its compliance and revenue yields implications. The last of these reductions which took place in August saw a whopping 50%, and 25% cut in assessed rates on commercial properties and industrial properties, respectively. This study employed the doctrinal research methodology whereby the valuation or assessment aspect of the LUC (2018) was diagnosed with a view to finding amicable resolutions to the equity problem that virtually crippled the effectiveness of LUC (2001) over its seventeen years of existence and is already threatening the survival of the new LUC (2018). Keywords: assessment criteria, equity and fairness, Land Use Charge (2018), property tax.

Data model development for ‘buying and selling’ transactions as a real estate acquisition method

There are many ways to acquire real estate in Turkey. The most common of them is ‘buying and selling’. The real estate/immovable property ‘buying and selling’ is a legal transaction carried out by rural Land Registry Offices in the General Directorate of Land Registry and Cadastre (GDLRC). The transactions are conducted through Land Registry and Cadastre Information Systems (LRCIS). LRCIS in e-Turkey is going to enable the transactions to be carried out efficiently. Turkish National Geographical Information Systems (TNGIS) studies and many academic studies based on e-Turkey and LRCIS have been developed in harmony with UML diagrams based on the Land Administration Domain Model (LADM) to the ISO standard. Within this context, possible situations that may be encountered in an immovable ‘buying and selling’ have been evaluated and modelled. One of the most important findings is that all immovable ‘buying and selling’ transactions are still not conducted entirely via e-Turkey. The model designed will contribute to the inclusion of elements not managed through e-Turkey. Thus, the trading process may proceed faster and more accurately thanks to the study. Before the process, it is additionally recommended that the application, which is defined as staking out a plot of the land/independent unit from a map/layout plan, and the valuation report showing the market value of the real estate should be made obligatory. Thanks to this obligation, rights of the buyer and seller according to the Confidence Principle and State's Responsibility Principle of the land register can be secured. In addition, the real estate tax values can be collected on the basis of these values. It is recommended to all those involved that they work on the model proposed by the study which guarantees the geometric and legal boundaries and the market value of the real estate with the necessary documents and institutions. In this way interoperability among all institutions can be provided quickly, data duplication can be avoided, correct data access can be ensured, data security can be kept at a high level, and transactions can be completed in a shorter time than the classical method.

The effect of ground rent and unexpired lease term on property values in Ghana

PurposeAlthough several factors influence property value determination depending on the market, relevant studies in sub-Saharan Africa (SSA) often fail to analyse the impact of factors, such as unexpired term of leasehold interest and ground rent, which are also germane to market transactions and value determination. This study aims to examine the effect of unexpired term of leasehold interests and ground rent on the valuation of residential properties in Ghana.Design/methodology/approachA questionnaire instrument was used to collect the views of a sample of professional real estate valuers on the relevance of these and other factors that affect value. In addition, the valuers were tasked to value a residential property located in Accra, Ghana. Ordinary least squares and quantile regression models were thereafter used to analyse the data to determine the effect of the subject variables on value.FindingsThe study finds a significant relationship between valuers’ views on the relevance of unexpired term of leasehold interest and the value placed on residential properties. Further, the respondents who viewed ground rent as an important factor in estimating values placed significantly lower values than those who viewed it as less important.Research limitations/implicationsThe findings suggest that the respondents may have split opinion on the existing anecdotal evidence that market participants ignore the unexpired term of leasehold interest, an issue that should be settled in theory. The findings also highlight the diversity of opinion on some of the fundamental factors that affect value and the need to build consensus to prevent excessive variation in value estimates among valuers.Originality/valueThe study makes a significant contribution in terms of extending the existing literature by analysing the impact of unexpired term of leasehold interests and ground rent on residential property values based on empirical data, issue(s) which have often been ignored by existing studies. Findings from the study also provide insights into additional possible causes of valuation errors in Ghana and SSA, which are useful for policy formulation and practice.

Property as Rent

As fear of financial market turbulence reaches its most severe level since the lead up to the Great Recession in 2007, this article revisits the topic of real estate securitization while broaching a broader concern with the inadequacy of how property theory has reckoned with major changes in the post-war economy since the 1970s. To do so the article highlights a new form of securitization— of rental payments from single-family homes — that has been emerging in the United States since 2013. It discusses the new class of securities that such single family rental (SFR) payments support as one example of the economy’s ever shifting overreliance on debt-based forms of financial asset property more generally. The article situates real estate securitization in specific and financial asset property in general in relation to our reinvigorated debate in law about property as an in rem right to exclude versus a versus a bundle of social relations making democratic community possible. Arguing that neither side in the debate has been well equipped to account for financial asset property, the article makes a normative case against the renewed resort to securitization in the real estate market. Using SFR-backed securities as an example, it argues that we can better understand debt-based property derived from real estate value according to a long-standing conception in law and economics of property as a means of extracting economic rent from land. Neglected by recent theorists on all sides, this conception of property-as-rent dates to the origins of classical economic thought and remained highly influential for early institutional economists and their legal realist inheritors in the United States. Its distinguishing feature was an underlying idea of rent that concentrated attention on land control as a means of garnishing unearned revenue from production so as to inhibit rather than promote economic well being. As renewed debate in property theory has instead focused on other concerns, we have missed the key role that financial ownership claims on land’s scarcity value have continued to play in our actual economy, steadily re-directing income and investment from productive to speculative use since the 1970s. In pressing the case for the conception of property-as-rent, the article closes by drawing on a novel data set to disaggregate the relative share of land versus built structure values in the long-term composition of housing prices in the United States. By doing so, the article shows how contingent securitization is on extracting — and transforming into bondholder interest — rentierist scarcity premiums from land, which the data demonstrate to comprise much/most of the increasing value of residential real estate in the last half-century.

Determination of Firm Value in Indonesia

The purpose of this study is to determine the significance of the effect of dividend policy on firm value. This research was conducted on property and real estate companies on the Indonesia Stock Exchange for the period 2014-2018 where the number of samples taken was 31 companies. Determination of the sample in this study using the purpose sampling method. The data analysis technique used is simple regression. The results showed that dividend policy affected the value of real estate and property companies in Indonesia. Based on the results of this study, it is expected that companies can increase prosperity to shareholders by taking into account the company's growth which shows the company is in good condition in the future. Keywords: firm value, dividend policy, dividend payout ratio, divident yield, price book value DOI : 10.7176/EJBM/11-15-02 Publication date :May 31 st 2019

A Study of Career Satisfaction Among Estate Surveyors and Valuers in Akwa Ibom State, Nigeria

This study surveyed a cross-section of sixty-five (65) estate surveyors and valuers in both public and private practice to determine their career satisfaction level. Twelve (12) test satisfaction statements were posed to the respondents through a questionnaire. The gathered data were analyzed using relative importance index. The study found that estate surveyors and valuers in public practice were unsatisfied with their career success, while those in private practice showed a higher career satisfaction level. The work advocated for improvement in working condition, income and development opportunities for estate surveyors and valuers in public practice and for improvement in the organizational structure of those in private practice. Keywords: Satisfaction, Career, Estate Surveyors and Valuers, Private Practice, Public Practice. DOI : 10.7176/EJBM/11-12-02 Publication date : April 30 th 2019

English

Utilization of secured lending valuations (SLV) by deposit money banks (DMBs) has not been sufficiently investigated in Abuja, Nigeria. Adequacy of the reports, factors influencing their use and how DMBs utilized them for loans were examined. Primary data collected from Estate Valuation (ESV) firms and DMBs were analyzed. Although the study showed that substantial portions of the report were adequate, crucial aspects such as valuation methods and value-opinions were not satisfactorily prepared. It also indicated that the poor perception of DMBs on valuation reports was the most critical factor that influenced their use. Value opinion, considered inadequate, was however sufficiently utilized. This inconsistency could lead to mortgage valuation failure in the city. The study recommends that valuation regulators should mandate ESVs to acquire periodic contemporary skills before their licenses are renewed. Lending regulators should similarly ensure that SLVs are processed by retained ESVs before utilization. Key words: Utilization, valuations, secured lending, Abuja, Nigeria.

The Mathematical Model of Forecasting the Price Level in the Regional Market of Residential Real Estate

The purpose of this article is to develop a mathematical model for estimating the value of a real estate object, taking into account the trends in the residential real estate market using indicators of the object’s state and indicators of the real estate market. The real estate market is a complex mechanism that includes subjects, objects, processes and infrastructure. The real estate market has its own characteristics that distinguish it from the market of goods and services related to the duality of real estate, its special characteristics. Despite the high conservatism, there are certain innovative trends in the development of the residential real estate market (innovations in construction, architecture, services and marketing, logistics, customer focus). The article considers the residential real estate market as a complex socio-technical system, to predict the development of which it is advisable to use a combination of classical forecasting methods and soft computing or intelligent data processing methods. A forecast of the development of the residential real estate services market was made using foresight technologies (industry roadmap). The analysis was carried out and the main factors acting on the market were identified, and their influence on the development of market trends was determined. A mathematical model for predicting the value of residential real estate based on the theory of fuzzy sets has been developed.

Online Marketing of Real Estate Products in Emerging Economies: The Case of Abeokuta Property Marketenter

The aim of this study is to examine the impact of online marketing of Real Estate Products (REP) in Abeokuta Nigeria with a view to providing information that will enhance real estate management practice in emerging property markets. Man in a bid to satisfy the basic need for shelter, engages in transactions on REP at varying dimensions. The use of traditional approaches to such transactions is being gradually phased out and replaced with digitalized approaches via the internet especially in developed economies. Questionnaire survey was conducted to determine the impact of this new approach to marketing REP in one of the African emerging property markets. The relevant population for this study comprised of all the twenty Estate Surveying and Valuation firms in Abeokuta metropolis. Questionnaire were administered on the managers of these firms out of which only 17 were properly filled and returned for analysis thereby representing 85% response rate. Both descriptive statistical tools as well as the Relative Importance Index (RII) were used in analyzing the data obtained for the study. Findings from the study indicated that the most preferred social media tool used for online marketing of REP in the study area was Facebook. Other online media tools in order of preferences were LinkedIn, Whatsapp, Instagram and skype. The study further revealed that these social media tools have significant impact on marketing of REP in the study area. Hence the need for all Estate Surveying and Valuation Firms in emerging markets to accept the global paradigm shifts to online marketing of REP as against the traditional approaches so as to enhance productivity in the real estate sector.

Residential real estate value assessment considering the influence of various factors

Interest in modern methods of assessing the value of real estate in the housing market is fuelled by the increased business activity, increased competition and changes in the taxation system. In this regard, the article proposes a method for assessing the value of real estate based on the analysis of various factors influence degree. The proposed recommendations are based on correlation and regression analysis. They allow for an absolute and relative adjustment of the residential property value. In order to confirm its practical application, a possible adjustment of the property considering the influence of the “quality of repair” factor is provided.

DYNAMICS OF REGIONAL RESIDENTIAL REAL ESTATE MARKETS IN UKRAINE

The dynamics of the general price index and price index on the primary and secondary residential real estate market (2015–2019) for one-room, two-room and three-room apartments is constructed in the article. The state and tendencies of development of the residential real estate market are considered, which in turn is characterized by: imperfection, problems of uneven development of certain parts of the market, closeness, unreliability and insufficient information about: value, subjects, objects, real supply and demand in the given economic sphere of our country in the conditions of disintegration processes. The regulatory framework by which the control and regulation of this type of market is carried out is not perfect enough. Different scientists, both domestic and foreign, have conducted research and determined a set of factors and methods used in the study of real estate, its assessment, analysis of trends in a certain period of time. A map of Ukraine, containing data on the average price per square meter of housing in all regional centers as of September 2019 is presented and comparative analysis with September 2018 is done; the cities with the largest or smallest price change has occurred are identified. The dynamics of the construction price index (2015–2019) was analyzed; it characterizes the changes and has a significant impact on the final value of real estate in a certain period of time during the construction process, the factors that influence the change of this index are identified. The dynamics of the average price per square meter of residential real estate in different regions of Ukraine is also presented, the factors that determine this dynamics for 2012–2019 were identified – in such cities as Kiev, Lviv, Donetsk, Kharkiv, Odessa, Sevastopol, Simferopol. Psychological factors that influence rise or fall in the value of residential property in selected major cities of Ukraine and in the cities near hostilities (Severodonetsk, Lisichansk) during and after the pre-war period were also identified.

Impact of environmental and climate conditions on the investment potential of real estate in the belt of the Gulf of Gdansk Coast

The subject of this publication is to determine what environmental and climatic factors can significantly affect the value of real estate. As a research object, there was chosen area surrounding the Gulf of Gdansk, which, like the entire coast, is attractive for investment and constitutes an interesting object as a space with a special focus on tourism, including short-term rental. Progressing climate change is particularly affecting this sector. It is safe to assume that unfavorable environmental conditions can significantly change the attractiveness of this area. Therefore, the research hypothesis about the correlation between climate aspects distinguishing the coastal belt and the distribution of real estate prices in the selected area has been verified. The area of the Gulf of Gdansk Coast and the technical and protective belt were analyzed. The weather situation on the coast is different from that prevailing in the rest of the country. There are strong and gusty winds, local floods, but at the same time a natural landscape, proximity to the sea and clean, iodized air. Other possible climatic factors have also been tracked, i.e. temperature, sea level and possible changes that may occur over the next years. The analyzes were based on the data of the KLIMAT project entitled "The impact of climate change on the environment, economy and society", and the Government Project KLIMADA and SPA analyzes. An in-depth analysis of the problem of combining planning documents for the maritime sector influencing the Study of Spatial Development of Polish Marine Areas with Local Spatial Management Plans, introduced Flood Risk Maps and Flood Risk Maps was also conducted.

Aspects of Agricultural Real Estate Management in the Value Approach in Ukraine

The paper discusses aspects of agricultural real estate management according to the value approach in Ukraine. The paper also characterises agricultural lands in reference to their soil classes and acreages. It also discusses the term of tenancy as one of the forms of management of agricultural real estates. The procedure of the determination of the value of agricultural real estates in Ukraine has been also discussed. The paper also presents the conditions of agricultural lands in Ukraine, their acreages and the amount of lands owned by the state and by private owners. The procedure of leasing agricultural lands has been also described.

North beltway of Cracow - selected elements of impact on the environment and the real estate market

The construction of such a large road facility as the city beltway can not have an impact on the environment. In addition to the obvious benefits to transport, attention should be paid to the environment of the area, in particular noise and air pollution. In December 2017, the Minister of Infrastructure and Construction signed the investment program for the implementation of the northern Krakow bypass road. General Directorate for National Roads and Motorways, the Kraków branch has announced an open tender for its implementation into the EU. Today, in our tender for the design and construction of the northern bypass road of Krakow, 8 offers was received. All tenderers give the date of completion of all works within 47 months. The length of the two-lane section of the beltway is about 12 km, each roadway will have 3 lanes. The POK (North Beltway od Cracow) will run mostly in the area of the Zielonki commune, through the towns of: Zielonki, Bibice, Węgrzce, Bosutów, Dziekanowice and Batowice. The analysis carried out show a very large increase in the value of real estates located in the northern part of Krakow and adjacent areas in recent years. According to the authors, the construction of the northern beltway and easier access to the center of Krakow through the modernization of the November 29 avenue will contribute to even greater interest in real estates located in this area. Real estate prices will certainly increase, rather only at the beginning of the investment. Residents will gain the comfort of an alternative transport line, but there will also be an increase in noise and air pollution, which is a particularly important problem in and around Krakow. The article presents the validation of these three issues in relation to changes in the real estate market in the commune of Zielonki.

Improvement of methods of cadastral valuation of real estate on the basis of urban development value of the territory. Part III

In the article for the purpose of carrying out the careful analysis of the results of an assessment on the basis of town-planning value developed by us the evaluation of results of approbation from the point of view of efficiency and efficiency of its use in practice is carried out. It is established that the obtained cadastral value is as close as possible to the market value, which will determine the economically justified value of real estate for the purpose of their effective and socially-fair taxation.

Administration of Unclaimed Estates in Malaysia: The Peculiarities of Unclaimed Money, Undistributed Fund and Bona Vacantia

Issues relating to the complexities of unclaimed estates have become a national concern and a major recurring problem as the value of such estates is growing annually. However, despite the constant reports on the increasing value of unclaimed estates, it is very unfortunate that the exact types of unclaimed estates remain hitherto uncertain and not specifically identified. Hence, this paper aims to examine the peculiarities of unclaimed estates in the administration of the deceased’s estate in Malaysia. The main focus is to analyses the position of the unclaimed money, the undistributed fund and the case of bona vacantia for the estate of a person dying intestate and leaving no heir to inherit accordingly. The discussion adopts the doctrinal analysis by examining the existing primary and secondary materials including statutory provisions, case law and other legal and non-legal literatures. The paper finds that the existence of various laws that governs different types of unclaimed estates has led to the distinctive methods in the administration and management of such estates. Hence, it is highly important that these types of estates together with legal and procedural mechanisms relating to the administration of such estates are clearly identified so that productive elements of such estates would be activated to the advantage of the rightful beneficiaries.