Modern Methods of Valuation

Mackmin, David; Sams, Gary

doi:10.4324/9780080971179

Cited by 18 publications

(4 citation statements)

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“…It should be mentioned that supporting decisions by determining the degree of sustainability in the overall project evaluation is of secondary importance and therefore it cannot negate the decision resulting from the analysis with the use of real optionsit can only strengthen or weaken it. Some believe, however, that probably in the near future, due to market requirements for financial terms of lease, the following elements for buildings will be identified: pass, excellent or outstanding (Shapiro, Mackmin & Sams, 2013). The results of individual IDI do not point to the existence of another qualitative factor that should be included in the modern integrated evaluation method and which would have a noticeable impact on the value of investment projects.…”

Section: Table 1 Decision Rules For the Exit Optionmentioning

confidence: 97%

“…An approach based on decision trees plays an important role among real options evaluation methods. The DTA is useful in the face of an uncertain future and presents cash flows within a structure of a tree that shows possible scenarios during the lifecycle of the project (Shapiro, Mackmin & Sams, 2013;Cox, Ross & Rubinstein, 1979). The ROM enables dynamic adaptation to changing market conditionsit limits the losses arising from negative changes in the investment environment and takes advantage of opportunities that occur (Leseure, 2010).…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

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Sustainable Investment Project Evaluation

Grzeszczyk¹,

Waszkiewicz²

2020

JESI

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This paper concerns a current problem of multifaceted evaluation of investment projects. Information that contains the actual value of the initiated investment is often the basis for making decisions regarding its further implementation, especially when significant changes occur in the project's environment. The process of project evaluation should therefore include all factors that may affect its value. However, there is a research gap regarding the insufficient development of methods of commercial real estate investment evaluation that integrate quantitative (financial) approaches and qualitative factors that influence the value of project, and also refer to the achievements in the scope of project management. The purpose of this paper is to introduce the integrated method of investment project evaluation based on the common valuation method (an income approach), supplemented by the results of the implementation of the Real Options Method (ROM) and complemented by the project sustainability factor. Case studies were carried out to prove that an exit option (resignation) can support the ongoing evaluation of the investment. Individual in-depth interviews (IDI) were conducted to examine the sustainability impact on its value. Three case studies involving commercial properties have verified the possibility of applying the proposed integrated method. The following findings were discovered as a result: nowadays, in the turbulent project environment, the common investment project valuation methods need to be extended to support the managerial decision regarding their further implementation and the securing of their flexibility. Also, sustainability has been recognized as a factor that increases the project value, which should be taken into account during the evaluation process. A comparative analysis indicates that the accuracy of the proposed new method delivers a more precise determination of the investment value than the common valuation methods.

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Section: Table 1 Decision Rules For the Exit Optionmentioning

confidence: 97%

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

Sustainable Investment Project Evaluation

Grzeszczyk¹,

Waszkiewicz²

2020

JESI

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“…With very few comparable buildings in the markets as is the case with most of the U.K. cities, the basis for valuation is usually absent, which implies that the estimations of a green premium tend to be by comparing new buildings with old. Although age, modernity, and other similar variables can be controlled for as usual in most hedonic pricing studies, such a process cannot compare with using ideal comparable properties (Muldavin, 2008;Shapiro, Mackmin, and Sams, 2012).…”

Section: Green Offices Are the Newestmentioning

confidence: 99%

The Impact of Green Premium on the Development of Green-labeled Offices in the U.K.

Oyedokun

Dunse

Jones

2018

Journal of Sustainable Real Estate

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“…They are devoted to the generalization of the models used, the analysis of the methods used, the purposes of the valuation and other charac-teristics of the spatial structure that determine the category of the proposed models. In work [23] models of real estate appraisal are analyzed depending on the purposes of the valuation (sale and purchase of property, mergers and acquisitions, taxation, mortgage lending). In [24], the models of real estate valuation are considered in the context of the methods used, which can be divided into two groups: traditional and advanced (analytical).…”

Section: Introductionmentioning

confidence: 99%

Problems of modeling the valuation of residential properties

Bogdanova

Kamalova²,

Kravchenko

et al. 2020

Bus. Inform.

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The solution of the housing problem for many decades has been and remains one of the most important tasks facing the nation. The problem of modeling the value of residential properties is becoming more and more urgent, since a high-quality forecast makes it possible to reduce risks, both for government bodies and for realtors specializing in the purchase and sale of residential properties, as well as for ordinary citizens who buy or sell apartments. Predictive models allow us to get an adequate assessment of both the current and future situation on the residential property market, to identify trends in the cost of housing and the factors influencing these changes. This involves both the qualitative characteristics of the particular property, and the general condition and the dynamics of the real estate market. Russia is characterized by significant differences in the level of development of regions, therefore, by differences in trends of supply and demand prices for real estate. Valuation of residential properties at the regional level is particularly important, since all of the above determines the social and economic importance of this problem. This article presents a comprehensive model for estimating the value of residential properties in the secondary housing market of Moscow using decision tree methods and ordinal logistic regression. A predictive model of the level of housing comfort was built using the CRT decision tree method. The results of this forecast are used as input information for an ordinal logistic regression model for estimating the value of residential properties in the secondary market of Moscow. Testing the model on real data showed the high predictive ability of the model we generated.

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Modern Methods of Valuation

Cited by 18 publications

References 0 publications

Sustainable Investment Project Evaluation

Sustainable Investment Project Evaluation

The Impact of Green Premium on the Development of Green-labeled Offices in the U.K.

Problems of modeling the valuation of residential properties

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