Statistical Relations of the Qualitative Attributes of Real Properties Subject to Mass Appraisal

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

doi:10.2478/foli-2019-0011

Cited by 6 publications

(4 citation statements)

References 4 publications

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“…with the participation of property appraisers. 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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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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“…The influence of attributes on the value of 1 m 2 of real estate can be estimated using correlation coefficients. When examining the correlation between the attributes on the real estate market and the value of 1 m 2 , the following problems are encountered (Dmytrów et al, 2019):…”

Section: 1szczecin Mass Real Estate Valuation Algorithmmentioning

confidence: 99%

Is It Possible to Overfit the Algorithm? Case Study of Mass Valuation of Land Properties in Szczecin

Gdakowicz¹,

Putek–Szeląg²

2020

ERSJ

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Purpose: The article presents the mass estimation of real estate value using the Szczecin Mass Real Estate Valuation Algorithm, with various sizes of the initial sample. The aim of the article is to investigate how the change of the sampling pattern affects the results of the valuation and to capture how acceptably small the sample may be, so that the algorithm overfitting does not occur. Design/Methodology/Approach: In the mass valuation algorithm used, correlation coefficients were used to estimate the influence of particular property attributes on the property value. Empirical research was conducted on the basis of the database of land properties in Szczecin. This database was divided into two groups: a training set and a test set. For the trainee set, appropriate correlation coefficients were calculated, and then, using the algorithm of mass valuation, the value of real estate in the test set was estimated. Findings: In all analysed cases, the MAPE error for the testing sample was greater than for the training sample. However, the smallest difference between the errors for the training and testing sample occurred in the case of using proportional stratified sampling. When using simple randomization, increasing the sample size by 40% resulted in a decrease in the MAPE error value. On the other hand, reducing the sample size in order to reduce the costs of mass real estate valuation will result in an increase in the error value and model overfitting. Practical Implications: Appropriate selection of the real estate sample on the basis of which the coefficients of the influence of individual attributes on the value of the real estate are calculated directly affects the cost-effectiveness of the entire mass valuation process. Originality/Value: The smaller the sample size, the less real estate has to be individually appraised by property appraisers. In addition, the precise selection of real estate for the training sample in the algorithm affects the convergence of the obtained real estate valuations with their market value.

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“…The problem of using appropriate coefficients to calculate the relationship between property features (attributes) is increasingly discussed. The authors point out the correct use of coefficients depending on the scale on which the attributes are presented (Dmytrów, et al, 2019;Babatunde, 2018;Gaca, 2018;Doszyń, 2017;Foryś & Gaca, 2016;Gaca & Sawiłow, 2014). Attention is also paid to the type of relationship between variables -straight or curvilinear (Barańska, 2019a(Barańska, , 2019b and to issues related to the collinearity of variables (Doszyń, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value

Gdakowicz

Putek–Szeląg

2020

Real Estate Management and Valuation

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Determining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.

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Statistical Relations of the Qualitative Attributes of Real Properties Subject to Mass Appraisal

Cited by 6 publications

References 4 publications

Calibration of impact of attributes in the real estate mass appraisal

Calibration of impact of attributes in the real estate mass appraisal

Is It Possible to Overfit the Algorithm? Case Study of Mass Valuation of Land Properties in Szczecin

The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value

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