Supporting property valuation with automatic reconciliation

Abstract

Purpose Valuation is a professional activity based on international and local standards. In the valuation process more than one method can be modified. In this case, a final reconciliation of different opinions of value may be required. It is a matter of fact that the final result of these different valuation methods may vary. Therefore, in the final part of the valuation process, the valuer is required to assign a weight to the different methodologies to reach an appropriate opinion of value. This process is essentially based on valuer’s expertise. This paper aims to propose an automatic procedure of calculating the weights to assist the valuer in the valuation process. Design/methodology/approach The work provides methodologies to assign the weights through simple mathematical procedures that can be used to support subjective judgement in the valuation process. The models proposed can be applied to other phases of reconciliation inside the valuation process and are based on the collection of previous property data in the same market segment. Findings Two different methodologies are proposed to support valuers in the valuation process and in particular in the phase of the choice of the weights for final reconciliation purposes. Research limitations/implications The implication is the development of an information system to support the appraiser in providing these weights. The models proposed are only two but represent a future, much larger field of research. Practical implications The models may help in determining more consistent valuation reports. Social implications Consistent valuation reports for the determination of mortgage lending value may contribute to the stability of the social and economic system, especially after the 2008 non-agency mortgage crisis. Originality/value These are original models proposed in literature for such kind of problems.

Modeling the Size of Protection Zones of Cultural Heritage Sites Based on Factors of the Historical and Cultural Assessment of Lands

“…The first stage of research includes the formation of a list of factors of historical and cultural assessment of lands that characterize the features of the urban environment (Figure 6) [31]. The initial substantiation of their composition was carried out through the analysis of scientific and regulatory literature [34,35], then they were tested for multicollinearity to confirm the possibility of using a linear regression method [36,37].…”

“…The next stage of modeling is the assignment of values to the estimated factors, that is, carrying out a historical and cultural assessment of the territory in accordance with the previously developed methodology [39]. This method is based on the expression of The initial substantiation of their composition was carried out through the analysis of scientific and regulatory literature [34,35], then they were tested for multicollinearity to confirm the possibility of using a linear regression method [36,37].…”

Automation of Negative Infrastructural Externalities Assessment Methods to Determine the Cost of Land Resources Based on the Development of a “Thin Client” Model

“…Arcuri, N., De Ruggiero, M., Salvo and F., Zinno, R. [21] suggest combining GIS and BIM into automated assessment methods. Among the studies dedicated to the development of real estate valuation models, one can highlight the study by Ciuna, M., Salvo, F. and Simonotti, M. [22], which presents the process of developing an AVM assessment model, characterized by the ability to perform even in the conditions with a small amount of data available; the article by Donald, E. [23], which describes the requirements for authorized assessment models; and the study by d'Amato, M. [24], which is dedicated to the use of automation for monitoring the assessment results. As a result, the development of automated modules for real estate valuation makes it possible to reduce labor and time costs, to obtain more accurate results and to operate with large amounts of data.…”