Principles and Criteria for using Statistical Parametric Models and Conditional Models for Valuation of Multi-Component Real Estate
Open Access
- 1 June 2019
- journal article
- research article
- Published by Walter de Gruyter GmbH in Real Estate Management and Valuation
- Vol. 27 (2), 33-43
- https://doi.org/10.2478/remav-2019-0013
Abstract
The complexity of multi-component real properties results from the possibility of identifying various components in legal, physical or functional terms. The possibility of distinguishing various functional elements of real properties, combined with the specificity resulting from their market properties, is problematic when applying the comparative approach to real estate valuation. In this case, the valuation procedure can be implemented using statistical models: the parametric model or the conditional one. This research paper demonstrates the construction of the parametric and conditional models taking into account the geometric and pricing attributes of multi-component real estate. The authors paid attention to adjusting the models to the available market data. They also specified the conditions for the use of statistical models in the real estate valuation process. Based on the analytical and accounting considerations, the estimation criteria for the parametric model and the conditional model were defined, which allow the correct application of these models at the stages of the real estate market analysis and the real estate valuation process.Keywords
This publication has 10 references indexed in Scilit:
- Appraisal of Real Estate with Various Functions in the Context of Sustainable DevelopmentJournal of Applied Engineering Sciences, 2019
- Conditional Model of Real Estate Valuation for Land Located in Different Land Use ZonesReal Estate Management and Valuation, 2018
- An Optimal Rubrics-Based Approach to Real Estate AppraisalSustainability, 2017
- Collaborative Geographic Information SystemsPublished by Springer Science and Business Media LLC ,2017
- Rating engineering of real estate markets as the condition of urban areas assessmentLand Use Policy, 2017
- Parametric model of real estate valuation for land located in different land-use zonesGeomatics and Environmental Engineering, 2017
- Application of the Huber and Hampel M-estimation in real estate value modelingGeomatics and Environmental Engineering, 2017
- THE PROCEDURE FOR THE VALUATION OF REAL PROPERTIES DEVELOPED WITH PASSIVE AND ENERGY-EFFICIENT HOUSESPublished by STEF92 Technology ,2016
- Urban land value maps – a methodological approachGeodetski vestnik, 2014
- Algorithm for purposes of determining real estate markets efficiency with help of land administration systemSurvey Review, 2013