Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market

Dmytrów, Krzysztof; Gdakowicz, Anna; Putek–Szeląg, Ewa

doi:10.2478/remav-2020-0007

Cited by 6 publications

(4 citation statements)

References 7 publications

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“…The location of the city of Szczecin in Poland is presented in Figure 1. The data set used here was the subject of a study on the problem of mass valuation of real estate (Dmytrów et al, 2020;Doszyń, 2020). Table 2 shows the property attributes listed in the dataset used and their respective categories.…”

Section: Methodsmentioning

confidence: 99%

Categorical Variable Problem In Real Estate Submarket Determination With Gwr Model

Gnat

2022

Real Estate Management and Valuation

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Real estate market analysis can involve many aspects. One of them is the study of the influence of various factors on prices and property values. For this type of issues, different kinds of measures and statistical models are often used. Many of them do not give unambiguous results. One of the reasons for this is the fact that the real estate market is characterized by the concept of local markets, which may be affected in different ways by economic, social, technical, environmental and other factors. Incorporating the influence of local markets, otherwise known as submarkets, into models often helps improve the precision of mass real estate valuation results. The delineation of submarket boundaries can be done in several different ways. One tool that is helpful in these types of situations are geographically weighted regression (GWR) models. The problem that may arise when using such models is related to the nature of some market factors, which may be of a qualitative nature. Because neighborhoods of individual properties may lack variability in terms of some variables, estimating GWR models is significantly difficult or impossible. The study will present an approach in which the categorical variables are transformed into a single synthetic variable, and only this variable will constitute the explanatory variable in the model. Areas where the slope parameters of the GWR model are similar were considered a submarket. The purpose of this paper is to determine the boundaries of submarkets in the study area and to compare the results of modeling the value of real estate using models that do not take local markets into account, as well as those that take into account local markets determined by experts and using the GWR model.

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Section: Methodsmentioning

confidence: 99%

Categorical Variable Problem In Real Estate Submarket Determination With Gwr Model

Gnat

2022

Real Estate Management and Valuation

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“…It should, however, be noted that the use of statistical methods is always limited by certain formal requirements. Therefore, when examining the correlations between attributes in the real estate market, the following problems may occur (Dmytrów et al, 2020):…”

Section: The Samwnmentioning

confidence: 99%

“…Since previous studies, e.g. Dmytrów et al (2020), indicated that the results obtained for partial coefficients reflect the relationships found on the market more efficiently, the analysis was extended to include partial variants of selected coefficients. Then, six procedures for calculating weights in SAMWN were proposed.…”

Section: Introductionmentioning

confidence: 99%

Untitled

2023

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estate appraisers. On the basis of empirical analyses covering 405 residential land properties in Szczecin, individually valued by appraisers for the purpose of the study, the authors propose four types of dependency coefficients and their partial values. They also propose four methods of considering these coefficients in the SAMWN procedure. Additionally, the authors assess the application of six weighting methods for the proposed measures. They obtain an optimal combination of the considered variants of the SAMWN algorithm by calculating the appraisal error measures, then followed by linear ordering procedures. The study shows that the valuation results are most affected by the formula used to calculate the weights of the influence of individual attributes on the value of the property in SAMWN. This confirms the usefulness of the analysed algorithm in practice, but at the same time the need to adapt its procedure to the specifics of the valued property.

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“…The impact may also be established in a quantitative approach, for instance, on the basis of a suitably specified econometric model (Doszyń and Hozer, 2017) or with the use of statistical methods (Dmytrów et al. , 2019, 2020).…”

Section: Calibration Of the Vector Of Attributes Impact In The Saremamentioning

confidence: 99%

Calibration of impact of attributes in the real estate mass appraisal

Dmytrów

Kuźmiński

2021

JERER

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PurposeOur research aims in designation of a hybrid approach in the calibration of an attribute impact vector in order to guarantee its completeness in case when other approaches cannot ensure this.Design/methodology/approachReal estate mass appraisal aims at valuating a large number of properties by means of a specialised algorithm. We can apply various methods for this purpose. We present the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA) and the four methods of calibration of an attribute impact vector. Eventually, we present its application on the example of 318 residential properties in Szczecin, Poland.FindingsWe compare the results of appraisals obtained with the application of the hybrid approach with the appraisals obtained for the three remaining ones. If the database is complete and reliable, the econometric and statistical approaches could be recommended because they are based on quantitative measures of relationships between the values of attributes and properties' unit values. However, when the database is incomplete, the expert and, subsequently, hybrid approaches are used as supplementary ones.Originality/valueThe application of the hybrid approach ensures that the calibration system of an attribute impact vector is always complete. This is because it incorporates the expert approach that can be used even if the database excludes application of approaches that are based on quantitative measures of relationship between the unit real estate value and the value of attributes.

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Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market

Cited by 6 publications

References 7 publications

Categorical Variable Problem In Real Estate Submarket Determination With Gwr Model

Categorical Variable Problem In Real Estate Submarket Determination With Gwr Model

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Calibration of impact of attributes in the real estate mass appraisal

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