The Comparative Approach Theory for Real Estate Valuation

Cupal, Martin

doi:10.1016/j.sbspro.2013.12.414

Cited by 12 publications

(10 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although the purpose of this database, showing the heterogeneity of real estates, is auxiliary, the resulting values are entered. The previous research (Cupal, 2014) enabled to support this research to bring more significant as well as independent results. Therefore, besides the real estate type, the first database is based on the key variable of the SCA: dissimilarity coefficient ki, where i represents all types of price adjustments (see Tab.…”

Section: Methodsmentioning

confidence: 51%

“…(128), cabins -6(31), restaurants -2(11), warehouse and manufacturing grounds -4(21), attic spaces -2(9), apartment houses -2(10), family houses (commercial purpose) -3(15), garage -1(7), commercial spaces -1(4). The second database of the research "Price changing during the offering of real estate" (Cupal, 2014) contains 500 observations. Although the purpose of this database, showing the heterogeneity of real estates, is auxiliary, the resulting values are entered.…”

Section: Methodsmentioning

confidence: 99%

“…The variables of the second database were obtained from "Price changing during the offering of real estate" research (Cupal, 2014) without changes or transformations.…”

Section: Methodsmentioning

confidence: 99%

See 2 more Smart Citations

Sales Comparison Approach Indicating Heterogeneity of Particular Type of Real Estate and Corresponding Valuation Accuracy

Cupal¹

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

Self Cite

View full text Add to dashboard Cite

The article focuses on heterogeneity of goods, namely real estate and consequently deals with market valuation accuracy. The heterogeneity of real estate property is, in particular, that every unit is unique in terms of its construction, condition, financing and mainly location and thus assessing the value must necessarily be difficult. This research also indicates the rate of efficiency of markets across the types based on their level of variability. The research is based on two databases consisting of various types of real estate with specific market parameters. These parameters determine the differences across the types and reveal heterogeneity. The first database has been set on valuations by sales comparison approach and the second one on data of real properties offered on the market. The methodology is based on univariate and multivariate statistics of key variables of those databases. The multivariate analysis is performed by Hotelling T 2 control chart and statistics with appropriate numerical characteristics. The results of both databases were joint by weights with regard to the dependence criterion of the variables. The final results indicate potential valuation accuracy across the types. The main contribution of the research is that the evaluation was not only derived from the price deviation or distribution, but it also draws from causes of real property heterogeneity as a whole.

show abstract

Section: Methodsmentioning

confidence: 51%

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Sales Comparison Approach Indicating Heterogeneity of Particular Type of Real Estate and Corresponding Valuation Accuracy

Cupal¹

2017

Acta Univ. Agric. Silvic. Mendelianae Brun.

Self Cite

View full text Add to dashboard Cite

show abstract

“…• majority of the methodologies are aimed at examining the rent cost of real estate (RE) and the influencing key factors thereof (French & Wiseman, 2003;Nase et al, 2013;Pagourtri et al, 2003;Fuerst & McAllister, 2010;Eichholtz et al, 2009Eichholtz et al, , 2010; • there is no systematic approach towards creating a system of RE lease indicators (Appel-Meullenbroek et al, 2011;Choi et al, 2012;Saari et al, 2006;Warren, 2003); • the focus is on the RE market and its factors, but not the lease (Zhang, 2015;Cupal, 2014;Fan et al, 2014).…”

Section: Developing a System Of Commercial Real Estate (Office) Leasementioning

confidence: 99%

Options for quantitative assessment of types of commercial real estate leases

Ginevičius

2016

Ekonomia I Zarzadzanie

View full text Add to dashboard Cite

Facing increasing business volumes and internationalisation, office lease issue is becoming increasingly relevant to business enterprises. They become an integral part of the business which determines the outcome of commercial activities. Current assessment methodologies for types of office leases are flawed because they lack comprehensiveness and they are not linked to the objective of a lease, that is improvement of business deliverables. The methods for quantitative assessment of lease types are flawed. The objective of this article is developing a hierarchical system of indicators in connection with commercial real estate (office) leases adapted for quantitative assessment using multi-criteria methods. As a result of the research, it has been obtained that such system contains three categories: economic, premises and environmental. 12 indicators fall into the first one, 24 - into the second and 16 - into the third one.

show abstract

“…Hence, the past selling price of a house may not be particularly helpful in identifying its current value after a certain period of time. To overcome these limitations and difficulties, we propose a new automated procedure developed on the basis of comparable sales method [6,7], which can be applied to any real estate valuation settings, and test its effectiveness in comparison to human expert estimations, involving the most populated areas in Korea using two different scenarios.…”

Section: Introductionmentioning

confidence: 99%

Applying Comparable Sales Method to the Automated Estimation of Real Estate Prices

Kim¹,

Choi

2020

Sustainability

View full text Add to dashboard Cite

In this paper, we propose a novel procedure designed to apply comparable sales method to the automated price estimation of real estates, in particular, that of apartments. Apartments are the most popular residential housing type in Korea. The price of a single apartment is influenced by many factors, making it hard to estimate accurately. Moreover, as an apartment is purchased for living, with a sizable amount of money, it is mostly traded infrequently. Thus, its past transaction price may not be particularly helpful to the estimation after a certain period of time. For these reasons, the up-to-date price of an apartment is commonly estimated by certified appraisers, who typically rely on comparable sales method (CSM). CSM requires comparable properties to be identified and used as references in estimating the current price of the property in question. In this research, we develop a procedure to systematically apply this procedure to the automated estimation of apartment prices and assess its applicability using nine years’ real transaction data from the capital city and the most-populated province in South Korea and multiple scenarios designed to reflect the conditions of low and high fluctuations of housing prices. The results from extensive evaluations show that the proposed approach is superior to the traditional approach of relying on real estate professionals and also to the baseline machine learning approach.

show abstract

The Comparative Approach Theory for Real Estate Valuation

Cited by 12 publications

References 6 publications

Sales Comparison Approach Indicating Heterogeneity of Particular Type of Real Estate and Corresponding Valuation Accuracy

Sales Comparison Approach Indicating Heterogeneity of Particular Type of Real Estate and Corresponding Valuation Accuracy

Options for quantitative assessment of types of commercial real estate leases

Applying Comparable Sales Method to the Automated Estimation of Real Estate Prices

Contact Info

Product

Resources

About