The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value

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.

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“…The impact of attribute states (𝐴𝐴 𝑘𝑘𝑘𝑘𝑗𝑗 ) can be determined e.g. on the basis of quantitative methods -using statistical methods (Gdakowicz & Putek-Szeląg, 2020a, 2020b. Thus, the objectivity of the procedure is retained and the human factor is limited to a minimum.…”

Sustainable Cities and Regions—Statistical Approaches

“…Understanding the quantitative features of many components of socio-environmental systems makes it easier to undertake proper actions to mitigate undesirable phenomena. Therefore, various statistical and mathematical techniques (machine learning, regression, classification, spatial analysis, and others) can be widely used to solve crucial problems in the current development of cities and regions worldwide to face the challenge of sustainable development at different scales [12][13][14][15][16][17]. Mathematical modelling of socio-environmental dependencies allows the drawing of far-reaching conclusions supporting the decision-making process for a more sustainable future.…”