IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v10n21995p175-184.html
   My bibliography  Save this article

A Connection between Paired Data Analysis and Regression Analysis for Estimating Sales Adjustments

Author

Abstract

The two methods most often recommended for obtaining market-derived adjustments utilized in the sales comparison approach to appraisal are Paired Data Analysis and Multiple Regression Analysis. These approaches are viewed as competing alternatives, with advocates and detractors for each. The main purpose of this paper is to demonstrate that these two alternatives to estimating sales adjustments are equivalent under certain circumstances. This point of equivalence may prove to be a useful starting place for improving our understanding of the differences between and similarities of the two methods. After explaining the data requirements of each method, we provide a set of sufficient conditions under which the two methods produce identical adjustment estimates. We finish with a discussion ofrelative advantages and disadvantages of these two methods in estimating sale comparison adjustments.

Suggested Citation

  • Joseph B. Lipscomb & J. Brian Gray, 1995. "A Connection between Paired Data Analysis and Regression Analysis for Estimating Sales Adjustments," Journal of Real Estate Research, American Real Estate Society, vol. 10(2), pages 175-184.
    • Handle: RePEc:jre:issued:v:10:n:2:1995:p:175-184
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol10n02/v10p175.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kerry D. Vandell, 1979. "Alternative Estimation Methods for Reduced form Price Equations under Conditions of Multicollinearity: A Comment," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 7(3), pages 427-436, September.
    2. Otis W. Gilley & R. Kelley Pace, 1990. "A Hybrid Cost and Market-Based Estimator for Appraisal," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 75-88.
    3. Joseph B. Lipscomb & J. Brian Gray, 1990. "An Empirical Investigation of Four Market-Derived Adjustment Methods," Journal of Real Estate Research, American Real Estate Society, vol. 5(1), pages 53-66.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Peter F. Colwell & Roger E. Cannaday & Chunchi Wu, 1983. "The Analytical Foundations of Adjustment Grid Methods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 11(1), pages 11-29, March.
    6. Han‐Bin Kang & Alan K. Reichert, 1991. "An Empirical Analysis of Hedonic Regression and Grid‐Adjustment Techniques in Real Estate Appraisal," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(1), pages 70-91, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lisi, Gaetano & Iacobini, Mauro, 2012. "Estimation of a Hedonic House Price Model with Bargaining: Evidence from the Italian Housing Market," MPRA Paper 66474, University Library of Munich, Germany.
    2. Gaetano Lisi & Mauro Iacobini, 2013. "Real estate appraisals, hedonic models and the measurement of house price dispersion," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(1), pages 61-73.
    3. Rohana Abdul Rahman, 2011. "Variations in Implementing SCM to Minimize Subjectivity and a Future Direction for Malaysia," ERES eres2011_178, European Real Estate Society (ERES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    2. Copiello Sergio & Cecchinato Filippo & Salih Mohammed Haj, 2021. "The Effect of Hybrid Attributes on Property Prices," Real Estate Management and Valuation, Sciendo, vol. 29(4), pages 36-52, December.
    3. Brent W. Ambrose, 1990. "An Analysis of the Factors Affecting Light Industrial Property Valuation," Journal of Real Estate Research, American Real Estate Society, vol. 5(3), pages 355-370.
    4. Maurizio d’Amato, 2007. "Comparing Rough Set Theory with Multiple Regression Analysis as Automated Valuation Methodologies," International Real Estate Review, Global Social Science Institute, vol. 10(2), pages 42-65.
    5. James A. Bryant & Donald R. Epley, 1998. "Cancerphobia: Electromagnetic Fields and Their Impact on Residential Loan Values," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 115-129.
    6. R. Kelley Pace, 1998. "Total Grid Estimation," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 101-114.
    7. Oana CHINDRIŞ-VĂSIOIU, 2014. "Economic Agent Behavior On Real Estate Market," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 3(1), pages 1-8, January.
    8. Sonia Yousfi & Jean Dubé & Diègo Legros & Sotirios Thanos, 2020. "Mass appraisal without statistical estimation: a simplified comparable sales approach based on a spatiotemporal matrix," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 349-365, April.
    9. Jean Dubé & Maha AbdelHalim & Nicolas Devaux, 2021. "Evaluating the Impact of Floods on Housing Price Using a Spatial Matching Difference-In-Differences (SM-DID) Approach," Sustainability, MDPI, vol. 13(2), pages 1, January.
    10. Ünsal Özdilek, 2019. "Scientific basis of value and valuation," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(3), pages 266-277, June.
    11. Adam Nowak & Patrick Smith, 2015. "Textual Analysis in Real Estate," Working Papers 15-34, Department of Economics, West Virginia University.
    12. Ritter, Matthias & Hüttel, Silke & Odening, Martin & Seifert, Stefan, 2020. "Revisiting the relationship between land price and parcel size in agriculture," Land Use Policy, Elsevier, vol. 97(C).
    13. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    14. Maristella Botticini & Aloysius Siow, 2003. "Why Dowries?," American Economic Review, American Economic Association, vol. 93(4), pages 1385-1398, September.
    15. Guilfoos, Todd & Walsh, Jason, 2023. "A hedonic study of New England dam removals," Ecological Economics, Elsevier, vol. 203(C).
    16. Muhammad Rafiq & Mir Kalan Shah, 2010. "The Value of Reduced Risk of Injury and Deaths in Pakistan—Using Actual and Perceived Risk Estimates," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 49(4), pages 823-837.
    17. Annie Tubadji & Peter Nijkamp, 2015. "Cultural impact on regional development: application of a PLS-PM model to Greece," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 687-720, May.
    18. Kim, Dongsoo & Liu, Feng & Yezer, Anthony, 2009. "Do inter-city differences in intra-city wage differentials have any interesting implications?," Journal of Urban Economics, Elsevier, vol. 66(3), pages 203-209, November.
    19. Gautier, Pieter & van Vuuren, Aico & Siegmann, Arjen, 2007. "The Effect of the Theo van Gogh Murder on House Prices in Amsterdam," CEPR Discussion Papers 6175, C.E.P.R. Discussion Papers.
    20. Bond, Craig A. & Thilmany, Dawn D. & Bond, Jennifer Keeling, 2008. "What to Choose? The Value of Label Claims to Fresh Produce Consumers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-26.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:10:n:2:1995:p:175-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.