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Data Selection as the Basis for Better Value Modelling

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  • Zyga Jacek

    (Faculty of Engineering and Architecture, Lublin University of Technology)

Abstract

The article is a voice in the debate on the scope of the application of statistical methods in real estate appraisal, written from the comparative perspective. It presents the results of an illustrative valuation of housing units with the use of databases of various sizes, constructed on the basis of publicly available data from the register of property prices and values. Against this background, the article presents an analysis of differences between the objectives and published results of valuations, which exemplify broadly understood property price modelling or property value modelling, as well as of activities focused around appraising a specific object. The conducted experiments demonstrated that, for the purposes of real estate appraisal itself, the selection of data is more useful than searching for a price model.

Suggested Citation

  • Zyga Jacek, 2019. "Data Selection as the Basis for Better Value Modelling," Real Estate Management and Valuation, Sciendo, vol. 27(1), pages 25-34, March.
    • Handle: RePEc:vrs:remava:v:27:y:2019:i:1:p:25-34:n:3
    DOI: 10.2478/remav-2019-0003
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    References listed on IDEAS

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    1. Steven C. Bourassa & Eva Cantoni & Martin Hoesli, 2010. "Predicting House Prices with Spatial Dependence: A Comparison of Alternative Methods," Journal of Real Estate Research, American Real Estate Society, vol. 32(2), pages 139-160.
    2. Hans R. Isakson, 1986. "The Nearest Neighbors Appraisal Technique: An Alternative to the Adjustment Grid Methods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 274-286, June.
    3. Eli Beracha & M. Babajide Wintoki, 2013. "Forecasting Residential Real Estate Price Changes from Online Search Activity," Journal of Real Estate Research, American Real Estate Society, vol. 35(3), pages 283-312.
    4. Vincenzo Del Giudice & Benedetto Manganelli & Pierfrancesco De Paola, 2017. "Hedonic Analysis of Housing Sales Prices with Semiparametric Methods," International Journal of Agricultural and Environmental Information Systems (IJAEIS), IGI Global, vol. 8(2), pages 65-77, April.
    5. Liv Osland, 2010. "An Application of Spatial Econometrics in Relation to Hedonic House Price Modelling," Journal of Real Estate Research, American Real Estate Society, vol. 32(3), pages 289-320.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    similarity; models of data; selection of data; real estate appraisal;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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