IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2003_198.html
   My bibliography  Save this paper

Fair Evaluation of real Estate Value in Urban Area via Fuzzy Theory

Author

Listed:
  • Young-Lung Lee
  • Chang Jung
  • Yih Yeh Kuang

Abstract

The real estate valuation in urban area is very difficult to make a good adjustment from many effecting qualitative factors. Market data approach relies on the market information and the reasonable adjustment with less subjectivity of the appraiser. This study tries to apply Fuzzy theory to deal with the subjectivity from the appraiser in determining the comparative of the qualitative variables. The qualitative factors considered in the real estate valuation model are first determined in the model using Quantification Theory I. The 22 effecting factors are considered in the model. And we make an evaluation formula in terms of the factors that show the maximum adjustment percentage to the real estate value from the market. The preliminary results are designed by a linguistic questionnaire and are surveyed by the officers in the fields of valuation. The fuzzy linguistic method is applied for solving the subjectivity of locational adjustment caused by the appraising officers. Integrated with the results and implemented with empirical evidence is established for the fair valuation of real estate for the final valuation model using Fuzzy Quantification Theory I. In order to verify the model we take 100 samples to review each case by the established model. The estimated results are demonstrated to show the differences. The final model is applied using the verified model. The qualitative variables are considered in the real estate valuation model and fuzzy linguistic model is applied to adjust the subjectivity of the appraisal. The modeling results are also verified by the samples that show the consistence of the appraising officers when using the fuzzy valuation model. The Tainan City case study shows some applicability of this model. The further study can be applied to a metropolitan area and the modeling parameters can be more realistic.

Suggested Citation

  • Young-Lung Lee & Chang Jung & Yih Yeh Kuang, 2003. "Fair Evaluation of real Estate Value in Urban Area via Fuzzy Theory," ERES eres2003_198, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2003_198
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2003-198
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Mehmet Emin Tabar & Aziz Sisman & Yasemin Sisman, 2023. "A Real Estate Appraisal Model with Artificial Neural Networks and Fuzzy Logic: A Local Case Study of Samsun City," International Real Estate Review, Global Social Science Institute, vol. 26(4), pages 565-581.
    2. Antipov, Evgeny & Pokryshevskaya, Elena, 2010. "Mass appraisal of residential apartments: An application of Random forest for valuation and a CART-based approach for model diagnostics," MPRA Paper 27645, University Library of Munich, Germany.
    3. Elena B. Pokryshevskaya & Evgeny A. Antipov, 2011. "Applying a CART-based approach for the diagnostics of mass appraisal models," Economics Bulletin, AccessEcon, vol. 31(3), pages 2521-2528.
    4. Áron Horváth & Blanka Imre & Zoltán Sápi, 2016. "The International Practice of Statistical Property Valuation Methods and the Possibilities of Introducing Automated Valuation Models in Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 15(4), pages 45-64.

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    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:arz:wpaper:eres2003_198. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    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.