Forced sale discount on property market – How to assess it?

Renigier‐Biłozor, Małgorzata; Walacik, Marek; Źróbek, Sabina; d’Amato, Maurizio

doi:10.1016/j.landusepol.2018.06.026

Cited by 24 publications

(16 citation statements)

References 13 publications

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“…The mean discount of the whole residential sample is equal to 45.9% of the list price and this figure is consistent with the results achieved by Renigier-Biłozor et al (2018).…”

Section: Descriptive Statisticssupporting

confidence: 90%

“…Moreover, in their (2016) work, the authors also investigated the discount between list price and forced sale value, analyzing a sample of forced property sales in the North of Italy and trying to empirically quantify the existing discount. An interesting comparison between the value regarding forced sale and average market value has been presented by RENIGIER-BIŁOZOR et al (2018); they have introduced the use of automated valuation methods (AVM) in the determination of property value for forced sales, basing the analysis on two property markets: the city of Bari (Italy) and the city of Olsztyn (Poland). The results showed that forced sale value is about 45% lower in the case of Bari, a city of the South of Italy also included in the sample of the current study.…”

Section: Evidence From Italian Experiencementioning

confidence: 99%

See 1 more Smart Citation

Italian Auction Market: Features of Discounted Forced Sale Price

Amoruso

Mariani

d’Amato

et al. 2020

Real Estate Management and Valuation

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The purpose of the paper is to investigate the main causes of discount between list price and forced sale value in the Italian real estate auction segment, in favor of more comprehensive determination of the value of mortgage underlying guarantees; this would allow for an improvement of further valorization processes of assets intended to obtain a higher selling price.Starting from the results of existing literature, an ordinary least squares regression analysis was conducted in order to point out the main determinants of the discount between list price and forced sale value. It has been verified, when sampling 225 cases of forced residential property sales in the South of Italy, that the time constraint of the Italian regulatory framework is more relevant with reference to discount rather than the physical characteristics of assets.The influence of the duration of procedures is proof that even if recent government initiatives have led to positive results in terms of reducing the length of procedures, this is not yet satisfactory compared to other European contexts. This provides evidence of the need for further interventions aimed at improving the efficiency of the procedural system, also encouraging recourse to other options that lead to ease judicial burden.

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“…The mean discount of the whole residential sample is equal to 45.9% of the list price and this figure is consistent with the results achieved by Renigier-Biłozor et al (2018).…”

Section: Descriptive Statisticssupporting

confidence: 90%

Section: Evidence From Italian Experiencementioning

confidence: 99%

Italian Auction Market: Features of Discounted Forced Sale Price

Amoruso

Mariani

d’Amato

et al. 2020

Real Estate Management and Valuation

Self Cite

View full text Add to dashboard Cite

show abstract

“…The objective of this study is to determine the significance of attributes based on AI technology; thus, the number of features shouldn't exceed seven. Additionally, the features were selected on the basis of widespread consideration of investment decision making on residential apartment markets (Hopfer, 2008;Cieślak et al, 2020;Renigier et al, 2018;Mert & Serhat, 2009).…”

Section: Data: Respondents and Property Attribute Imagesmentioning

confidence: 99%

Human emotion recognition in the significance assessment of property attributes

Renigier‐Biłozor

Janowski

Walacik

et al. 2021

J Hous and the Built Environ

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One of the largest problems in the real estate market analysis, which includes valuation, is determining the significance of individual property attributes that may affect value or attractiveness perception. The study attempts to assess the significance of selected attributes of real estate based on the detection and analysis of the emotions of potential investors. Human facial expression is a carrier of information that can be recorded and interpreted effectively via the use of artificial intelligence methods, machine learning and computer vision. The development of a reliable algorithm requires, in this case, the identification and investigation of factors that may affect the final solution of the problem, from behavioural aspects through technological possibilities. In the presented experiment, an approach that correlates the emotional states of buyers with the visualization of selected attributes of properties is utilized. The objective of this study is to develop an original method for assessing the significance of property attributes based on emotion recognition technology as an alternative to the commonly used methods in the real estate analysis and valuation, which are usually based on surveys. The empirical analysis enabled determination of the mainstream property attributes significance from evoked emotions intensity within the group of property clients (represented by 156 respondents). The significance ranking determined on the basis of the unconscious expressed facial emotions was verified and compared to the answers given in a form of questionnaire. The results have shown that the conscious declaration of the attribute ranking differs from the emotion detection conclusions in several cases.

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“…According to Meins, Wallbaum, Hardziewski, and Feige (2010) the financial added value resulting from sustainability is not sufficiently taken into account in property valuation due to the tendency of valuations to postponement behind market trends. As stated by Kucharska-Stasiak and Olbi nska (2018) this attitude leads to sustainable building, the development of which depends not only on the market participants' awareness of sustainability issues and their readiness to embrace the concept of sustainable development, but also on the benefits that property owners and tenants can have from sustainable building, which should be reflected in valuations (Renigier-Biłozor, Walacik, Źróbek, & D'amato, 2018).…”

Section: Different Interpretation Of Highest and Best Use Conceptmentioning

confidence: 99%

Property sustainable value versus highest and best use analyzes

Walacik

Renigier‐Biłozor

Chmielewska

et al. 2020

Sustainable Development

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Sustainable development of all the urban environment elements (including properties) is a very information requiring decision making process that absorbs data from many different fields. Since economic aspects of that kind of development are one the fundaments of the concept, property assessment procedures quite often support sustainable development. The current market value definition interpretation provided by valuation standards of international rage (EVS, IVS) and highest and best use of property (H&BU) have also become widely discussed and troublesome issues. The discussion is vital due to the fact of H&BU consideration in wider context, including sustainable development and sustainable value. The authors in order to improve clarity of the paper proposed a definition of sustainable value. The use of modified methods of sensitivity and scenario combined analysis as a solution enabling sustainable value quantification with the use of H&BU property assessment theory and practice was proposed. The obtained sustainable value coefficient, determined according to proposed methodology, enabled consideration of all the highest and best use tests. Additionally, it enabled consideration of sustainability context. It was described by maximal productivity of property strongly correlated with socioeconomic and socio-cultural phenomena. Highlights 1. The concept of sustainable development involves much more than the "green" issue, thus can create an added value for real estate analysis (especially based on "highest and best use" assumptions). 2. Even though the "highest and best use" notion has been defined its' interpretation causes many ambiguities and problems. 3. "Highest value" is a condition that requires taking into account all the circumstances (physical, legal, financial and productivity) with maximum: return rate/ developed area/increase of build-up area. 4. Maximal productivity in highest and best use context means directly not to give any decreases in sustainable value or/and give possibility to increases the sustainable value in the future. 5. "Sustainable value" can reflect not only economic issues (reflected directly by property value) but can exceed its' meaning to a broader sense including

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Forced sale discount on property market – How to assess it?

Cited by 24 publications

References 13 publications

Italian Auction Market: Features of Discounted Forced Sale Price

Italian Auction Market: Features of Discounted Forced Sale Price

Human emotion recognition in the significance assessment of property attributes

Property sustainable value versus highest and best use analyzes

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