The Nearest Neighbors Appraisal Technique: An Alternative to the Adjustment Grid Methods

Isakson, Hans R.

doi:10.1111/1540-6229.00387

Cited by 37 publications

(21 citation statements)

References 6 publications

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“…Due to the manner of identifying property location, it strongly underlines the metric of nearness as well as the hedonic distance between the benchmark property and other properties in the sample. Therefore, it is similar to the ideas of ( ISAKSON (1986) and (KRAUSE, KUMMEROW 2009), who used Mahalanobis distance with or without an additional distance penalty.…”

Section: Data and Methods Of Data Analysismentioning

confidence: 96%

Data Selection as the Basis for Better Value Modelling

Zyga

2019

Real Estate Management and Valuation

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The article is a voice in the debate on the scope of the application of statistical methods in real estate appraisal, written from the comparative perspective. It presents the results of an illustrative valuation of housing units with the use of databases of various sizes, constructed on the basis of publicly available data from the register of property prices and values. Against this background, the article presents an analysis of differences between the objectives and published results of valuations, which exemplify broadly understood property price modelling or property value modelling, as well as of activities focused around appraising a specific object. The conducted experiments demonstrated that, for the purposes of real estate appraisal itself, the selection of data is more useful than searching for a price model.

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Section: Data and Methods Of Data Analysismentioning

confidence: 96%

Data Selection as the Basis for Better Value Modelling

Zyga

2019

Real Estate Management and Valuation

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“…The only subjective aspect of NNAT is determining the n-dimensional space and how to measure distance within this space. Isakson (1986a and1986b) implements NNAT using the following steps:…”

Section: The Nearest Neighbors Appraisal Techniquementioning

confidence: 99%

“…N THIS STUDY, the Nearest Neighbors Appraisal Technique (NNAT), I a value-estimation technique developed by Isakson (1986a and1986b), is extended in two ways. It is applied to income-producing real estate, and time is included as a parameter, using sales data obtained from the Dallas County Appraisal District.…”

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confidence: 99%

Valuation Analysis of Commercial Real Estate Using the Nearest Neighbors Appraisal Technique

Isakson

1988

Growth and Change

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The Nearest Neighbors Appraisal Technique (NNAT) is pitted against the traditional real estate appraisal process and ordinary least squares (OLS) estimates of value for various types of commercial real estate in Dallas, Texas. Additionally, time is explicitly entered into NNAT. NNAT estimates of value are significantly more accurate than the traditional appraisal process for all types of commercial real estate, it is significantly more accurate than OLS estimates for retail and miscellaneous properties, and it is more accurate, but not significantly so, than OLS estimates for other types of commercial real estate. N THIS STUDY, the Nearest Neighbors Appraisal Technique (NNAT),

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“…The question of valuation seems to have been fully discussed, because it has been subject to deep analysis since the early 1970s. The complete reference list is too long to quote in total here, and therefore only a few milestone positions can be mentioned (SHENKEL, EIDSON 1971;SKAFF 1975;TCHIRA 1979;ALBRITTON 1982;SHLAES 1984;ISAKSON 1986;THOMPSON, GORDON 1987;PETO et al 1996;MCCLUSKEY, BORST 1997;PAGOURTZI et al 2003;FRENCH 2003;FRENCH 2004; D'AMATO, KAUKO 2017). Nevertheless, new points of view on valuation are still emerging.…”

Section: Introductionmentioning

confidence: 99%

Dissimilarity as a Component of the Property Price Model

Zyga

2019

Real Estate Management and Valuation

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In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process (property market value prediction itself) was raised in this article. The need for the consideration of an ontologically perceived, particular element of the real estate market with its distinctive characteristics indicates the specific nature of the interpretation of the data which may be used in the appraisal process. Therefore, a new shape of the property value model, based on LSM, was presented. It takes into account a specific description of the appraised property. Thus, the factor of dissimilarity between sold properties used in creating the value model and the appraised property was used in its coefficient matrix. The new model clearly shows the advantages and disadvantages of the dissimilarities between sold properties used in creating the coefficient matrix of the value model.

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The Nearest Neighbors Appraisal Technique: An Alternative to the Adjustment Grid Methods

Cited by 37 publications

References 6 publications

Data Selection as the Basis for Better Value Modelling

Data Selection as the Basis for Better Value Modelling

Valuation Analysis of Commercial Real Estate Using the Nearest Neighbors Appraisal Technique

Dissimilarity as a Component of the Property Price Model

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