An Estimative Model of Automated Valuation Method in Italy

Ciuna, Marina; Salvo, Francesca; Simonotti, Marco

doi:10.1007/978-3-319-49746-4_5

Cited by 6 publications

(5 citation statements)

References 20 publications

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“…Following the non-agency mortgage crisis, numerous contributions have been offered in order to improve the efficiency and quality of an automated valuation methodology (AVM) dealing with emerging problems and different contexts. Spatial issues [29,30], evolution of AVM standards [31][32][33], multilevel models [34], fuzzy and rough set applications [35] and quantitative methods to define comparables are just some of the topics discussed.…”

Section: Literature Reviewmentioning

confidence: 99%

A Mass Appraisal Model Based on Market Segment Parameters

2017

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Abstract:The proposed evaluation scheme is a uni-equation model to evaluate properties of Mass Appraisal (MA) in terms of widespread availability of sample data. It all allows the use of statistical models and in the opposite conditions of the absence of data of comparable properties, the functions of similar market areas are known as well as the ones near to those for which you want to estimate the function. Of course, the accuracy of the evaluation increases with the amount of available data, with other equal conditions and evaluations carried out without data (but in the presence of other market information). It requires extra-statistical appraisal procedures involving a complete knowledge of the real estate market. However, such knowledge is also required in the MA performed by quantitative models with regard to the data sampling and performance monitoring process. The model considers micro-level characteristics of the properties and macro-level parameters of the real estate market segments. The appraisal model defines the prediction function with both the statistical models and estimation procedures. For this purpose, the model considers four specific situations: the construction of a statistical model operating with a sufficiently large sample of market prices; the construction of a prediction function operating with a very few number of market prices samples; in this situation, the appraisal function of market value is defined by using a sample of market prices referred to comparable properties, and these are few for statistical use but perfectly suitable to the appraisal process; the construction of a prediction function operating with only one market price; the construction of a prediction function operating in the absence of real estate data but with similar functions of market areas with other estimated proprieties. The presented model provides a uniform method of estimating the market value of properties (and fees), through the modular functions. The model studied is able to operate also with reduced information, considering the practical circumstances, the boundary conditions, the application precautions and the significance of the results.

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Section: Literature Reviewmentioning

confidence: 99%

A Mass Appraisal Model Based on Market Segment Parameters

2017

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“…Recently, autoregressive models have also been developed [16], as well as models using advanced techniques, such as geographic information systems [17]. Other models use a set of known parameters and characteristics of assets as well as their associated marginal prices [18]. Very advanced models use evolutionary polynomial regression to maximize data accuracy [19].…”

Section: Introductionmentioning

confidence: 99%

“…The systems are based on available statistical data about realized real estate transactions, and they try to find relationships and connections in these sets, which are then generally interpretable-they are based on comparable transaction methods. Of course, a wider available database means more objective results [18]. The systems work with multiple regressions and they create prediction functions.…”

Section: Introductionmentioning

confidence: 99%

Possibilities of House Valuation Automation in the Czech Republic

2020

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Valuation of single-family detached houses is necessary when determining the amounts of some taxes. The current systems of the Czech Republic are outdated in this respect, and they are based on procedures used in the 1980s. The values found do not correspond to current market conditions very often. This article attempts to verify the applicability of a methodology where the value of a detached house is decomposed into the value of the land and the value of the object as such when considering wear. For verification, 122 sales of detached houses in Ostrava and its surroundings were analyzed, and the results show that the values determined by the verified methodology do not differ by more than 10% from the actual sales prices in most cases. The methodology is very simple and practically applicable for users without deep knowledge of construction or valuation principles. It can be applied, for example, when calculating the bases of certain taxes or as an indicative guide for the pricing of real estate for sellers, buyers, real estate agents, etc.

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“…In the presence of a sufficient amount of real estate data, the traditional statistical theory postulates a normal distribution for the real estate prices, consequently requiring the adoption of specific statistical measures applicable to the data population (e.g., mean, median, variance, standard error, standard deviation, etc.). However, in the real estate field, there is usually a low amount of detectable real estate data: this circumstance, together with the stratification processes of real estate markets, are conditions that do not satisfy the postulate of a normal distribution of the observed real estate prices [1][2][3][4][5][6][7][8][9][10][11][12].…”

Section: Introductionmentioning

confidence: 99%

“…The resampling methods applied to the real estate market allow appraisals with a small dataset to be implemented and the postulate of normal distribution of the real estate prices to be overcome and, thus, these methods are able to produce relevant improvements in the statistical-estimative analysis usually executable in this field [2][3][4][5][6][7][8][9][10][11][12].…”

Section: Introductionmentioning

confidence: 99%

Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach

2018

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Applied to real estate markets analysis, the resampling methods aim to contribute to the knowledge growth of real estate market dynamics, overcoming the issues related to the data scarcity and operational limits of traditional statistical theory. Among resampling methods, the Bootstrap technique appears to be the most suitable for the interpretation of real estate phenomena. In this study, for residential properties located in Cosenza (Calabria Region, Italy), a Bootstrap approach has been used in order to determine the marginal prices of the real estate characteristics detected, comparing the results with those obtainable with a traditional Multiple Regression Analysis.

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An Estimative Model of Automated Valuation Method in Italy

Cited by 6 publications

References 20 publications

A Mass Appraisal Model Based on Market Segment Parameters

A Mass Appraisal Model Based on Market Segment Parameters

Possibilities of House Valuation Automation in the Czech Republic

Resampling Techniques for Real Estate Appraisals: Testing the Bootstrap Approach

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