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Abidoye, Rotimi Boluwatife, Ma Junge, Terence Y. M. Lam, Tunbosun Biodun Oyedokun, and Malvern Leonard Tipping. "Property valuation methods in practice: evidence from Australia." Property Management 37, no. 5 (October 21, 2019): 701–18. http://dx.doi.org/10.1108/pm-04-2019-0018.
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Purpose Improving valuation accuracy, especially for sale and acquisition purposes, remains one of the key targets of the global real estate research agenda. Among other recommendations, it has been argued that the use of technology-based advanced valuation methods can help to narrow the gap between asset valuations and actual sale prices. The purpose of this paper is to investigate the property valuation methods being adopted by Australian valuers and the factors influencing their level of awareness and adoption of the methods. Design/methodology/approach An online questionnaire survey was conducted to elicit information from valuers practising in Australia. They were asked to indicate their level of awareness and adoption of the different property valuation methods. Their response was analysed using frequency distribution, χ2 test and mean score ranking. Findings The results show that the traditional methods of valuation, namely, comparative, investment and residual, are the most adopted methods by the Australian valuers, while advanced valuation methods are seldom applied in practice. The results confirm that professional bodies, sector of practice and educational institutions are the three most important drivers of awareness and adoption of the advanced valuation methods. Practical implications There is a need for all the property valuation stakeholders to synergise and transform the property valuation practice in a bid to promote the awareness and adoption of advanced valuation methods, (e.g. hedonic pricing model, artificial neural network, expert system, fuzzy logic system, etc.) among valuers. These are all technology-based methods to improve the efficiency in the prediction process, and the valuer still needs to input reliable transaction data into the systems. Originality/value This study provides a fresh and most recent insight into the current property valuation methods adopted in practice by valuers practising in Australia. It identifies that the advanced valuation methods could supplement the traditional valuation methods to achieve good practice standard for improving the professional valuation practice in Australia so that the valuation profession can meet the industry’s expectations.
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Heller, J., and Daria Zlachevskaia. "Is it possible to improve methods of intellectual property valuation?" Zeszyty Teoretyczne Rachunkowości 45, no. 2 (June 21, 2021): 161–86. http://dx.doi.org/10.5604/01.3001.0014.9568.
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Purpose: The purpose of this study is to identify ways to improve or simplify the quality and accuracy of IP valuations via accounting regulation improvements. Methodology/approach: This research relies on qualitative research methods such as case law analysis and comparative research of accounting standards and approaches. Findings: Evidence from this study points towards the conclusion that financial statements currently only reflect a historic financial record of the particular business, profoundly biased by a conservative tangible assets perspective. The central thesis of this study is that it makes sense to adopt a comprehensive intellectual property valuation strategy to ascertain the specific value of the intangible assets since the comprehensive application of valuation models is likely to yield superior results to using them separately. Research limitations/implications: Although the proposed approach seeks to bring more clarity to the valuation process while simplifying the appraisal of intellectual property assets, its efficacy is subject to increased transparency, a maturing intellectual property market, and credible data availability. Originality/value: This study makes a valuable contribution to research on methods that facilitate accurate intellectual property valuation while offering an alternative valuation model which combines the strengths of individual valuation models.
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Augustyniak, Hanna, Jacek Laszek, Krzysztof Olszewski, and Joanna Waszczuk. "Property valuation for mortgage purposes in Poland." Property Management 36, no. 2 (April 16, 2018): 234–47. http://dx.doi.org/10.1108/pm-09-2016-0049.
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Purpose The purpose of this paper is to describe the property valuation methods that are applied in Poland. It shows that they base on international standards and are a reliable source of information for international investors and banks. Design/methodology/approach The valuation methods are described and critically assessed, potential problems are pointed out. The analysis of lending risk is analysed on data about non-performing loans (NPL). Findings Polish valuation methods are in line with international methods, but there are some risks, like small number of transactions, subjective behaviour of valuers. The low NPL ratios indicate that the valuation works correctly. Practical implications The Polish valuation methods are trustworthy, non-performing mortgage ratios are low, however, banks and investors should ask whether there is a local zoning plan. Moreover, they should look critically at the comparables that were used during the valuation process, if in their opinion the valuation is overly low or high. Originality/value This paper focusses on valuation from a financial stability perspective. It uses Polish literature and data on NPLs to give an insight on valuation of property and mortgage risk in Poland. Besides the review of the methods it points out the problems related to valuation uncertainty, such as the risk of subjective behaviour of valuers and the low number of transactions in some regions, which are used for valuations.
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Uwaifiokun, Vincent. "Application of Contemporary Equated Yield and Dcf Explicit Growth Methods in the Valuation of Over-Rented Properties in a Recessionary Period: A Case Study of Nigeria." Real Estate Management and Valuation 26, no. 3 (September 1, 2018): 35–50. http://dx.doi.org/10.2478/remav-2018-0023.
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Abstract Valuations have always been time specific and, if properly undertaken, are supposed to give a true reflection of property market conditions at any given point in time. In periods of economic decline, when properties are leased or tend to exchange hands at rents or prices lower than their true market value, a need to capture the explicit growth rate associated with an instability in the property market arises. With the Nigerian economy currently facing its worst recession in years, the onus is on valuers to adopt contemporary methods of valuation which seek to mirror the true situation of the property market at any point in time; something which, hitherto, conventional methods of valuations have failed to do. This paper therefore takes a pilot survey of the types of investment valuation models currently adopted by valuers when carrying out valuations of reversionary properties in a recession. The study seeks to highlight the knowledge gap of valuers, both in practice and in the academia, concerning the use of the Equated yield and DCF explicit growth method of valuation, and hence enlighten them and the general public on its use as a more appropriate method of valuing properties during a downturn.
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Malienė, V., E. K. Zavadskas, A. Kaklauskas, and S. Raslanas. "PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS." Statyba 5, no. 4 (January 1999): 272–84. http://dx.doi.org/10.1080/13921525.1999.10531475.
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French, Nick. "Editorial: Property valuation – methods and models." Journal of Property Investment & Finance 39, no. 5 (August 2, 2021): 425. http://dx.doi.org/10.1108/jpif-08-2021-180.
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Gdakowicz, Anna, and Ewa Putek-Szeląg. "The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value." Real Estate Management and Valuation 28, no. 4 (December 1, 2020): 33–47. http://dx.doi.org/10.1515/remav-2020-0030.
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AbstractDetermining 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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French, Nick, and Laura Gabrielli. "Pricing to market." Journal of Property Investment & Finance 36, no. 4 (July 2, 2018): 391–96. http://dx.doi.org/10.1108/jpif-05-2018-0033.
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Purpose Since the global financial economic crisis hit the world markets in 2007/2008, the role of property valuation has been under greater and greater scrutiny. The process of valuation and its quality assurance has been addressed by the higher prominence of the International Valuation Standards Council (IVSC). This is a significant initiative worldwide. However, there has been little written on the appropriate use of valuation approaches and methods in market valuations. There is now a hierarchy of valuation definitions. In order, there are valuation approaches, valuation methods and, as a subset of the methods, techniques or models. The purpose of this paper is to look at the importance of identifying the appropriate approach to be adopted in market valuations and the methods, techniques and models that should be applied to determine market value. Design/methodology/approach This practice briefing is an overview of the valuation approaches, methods and models available to the valuer and comments on the appropriateness of valuation each in assessing market value. Findings This paper reviews the IVSC-recognised approaches and prompts the valuer to be careful with the semantics involved so that they are better placed to provide an unambiguous service to their clients. Practical implications The role of the valuer in practice is to identify the appropriate approach for the valuation of the subject property, choose the right method and then apply the correct mathematical model for the valuation task in hand. Originality/value This provides guidance on how valuations can be presented to the client in accordance with the International Valuation Standards.
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Fomina, Olena, Olena Moshkovska, Olena Prokopova, Nataliya Nikolenko, and Svitlana Slomchynska. "Methodological approaches to investment property valuation." Investment Management and Financial Innovations 15, no. 4 (December 26, 2018): 367–81. http://dx.doi.org/10.21511/imfi.15(4).2018.30.
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Increase in number of the investment property items available in both domestic and international markets, present-day European integration processes, as well as existing differences in statutory provisions in force (controversial essentials of the investment property identification as an asset and ambiguity of implementation of the methodological approaches to the investment property valuation) have stipulated the need for improvement of the hierarchy of the investment property item fair value recognition and measurement criteria. Proposed identification methods will contribute into amplification of the synergy effect of the investment property item accounting and management due to improvement of quality and fairness of the information data on certain assets of the establishment. Methodology for the investment property valuation and changed value reporting format were worked out based upon critical analysis of the scientific professionals’ main approaches to the investment property fair value measurement as provided for by statutory requirements to disclosure of the asset related information. Findings made and recommendations worked out on consideration of the harmonized indicator system implementation have thereafter found the practical use in the investment property item management efficiency assessment model.
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Małkowska, Agnieszka, and Małgorzata Uhruska. "Towards Specialization or Extension? Searching for Valuation Services Models Using Cluster Analysis." Real Estate Management and Valuation 27, no. 4 (December 1, 2019): 27–38. http://dx.doi.org/10.2478/remav-2019-0033.
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Abstract The paper delivers original data on specialization in property valuation services in Poland. Its aim is to identify relatively homogeneous groups of property appraisers taking into consideration the scope of services performed by them and the types of clients served. Based on the survey results, it was possible to indicate major models in property valuation services consistent with market applications, which allows us to verify the thesis on specialization in doing business in property valuation. The research strategy approach is twofold. Firstly, we have used the agglomerative cluster method to divide the types of valuation services and appraisers’ clients in order to find groups of similar valuation services and represent the main models of business in property appraisals. Secondly, we have applied the k-means partition methods to find relatively homogenous groups of respondents, taking into account the frequency of carrying out the particular types of valuations and clients served. As a result of our research, we present four clusters combining valuations and client types which reflect the models of property valuers’ professional activity, i.e: the market-oriented housing valuation model, market-oriented commercial valuation model, non-market-oriented judicial valuation model and non-market- oriented public valuation model. Research findings confirm the existence of three out of the four specialization clusters within the professional activity. We also extracted a group of appraisers operating on a broad scale, both when it comes to the types of services offered and clients served.
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Malienė, Vida, Edmundas K. Zavadskas, Artūras Kaklauskas, and Saulius Raslanas. "PROPERTY VALUATION BY MULTIPLE CRITERIA METHODS/NEKILNOJAMOJO TURTO VERTINIMAS DAUGIAKRITERINIU METODU." JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT 5, no. 4 (August 31, 1999): 272–84. http://dx.doi.org/10.3846/13921525.1999.10531475.
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Multiple criteria valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income of use. They are used in valuating various property characteristics, ie its location or obsolescence degree. In Germany, however, multiple criteria valuation technique refers to a separate group of property valuation methods applied when market data are unavailable or insufficient (ie purchasing, selling or renting prices are not known). The above methods have been used for real estate valuation since 1976. Dr. H. E. Auerhammer [1] was the first to apply these approaches to solving real estate valuation problem caused by the scarcity of market data. These methods supplemented with systems of criteria developed by other authors were later applied to particular cases when three major commonly used property valuation methods could not be applied. Thus, K. Gablenz [2] suggests using the method described in assessing plots intended for agriculture, while B. Bischoff [3] offers to use it for determining the investments into plots. R. Vogel [4] thinks that the approach may be used for determining the approximate value of land, whereas G. Sommer and P. Zimmermann [5] and Piehler [6] developed a system of criteria to be used as a part of the method described in determining the differences between the value of quantitative and qualitative characteristics of an object and its market value. T. Gierardy and R. Moeckel [7] described the advantages and disadvantages of methods based on multiple criteria analysis. The above methods are widely used in Germany for property valuation, the peak of their application being associated with the unification of East and West Germany in 1990 [8]. Multiple criteria analysis presented in this paper for property valuation may be used to the advantage of various interested parties (see Fig 1). The representatives of various parties including appraisers, buyers, sellers and investors may use it for their particular purposes: appraiser may apply this method to real estate value analysis for determining the market, use and other values of real estate being mortgaged, ensured, privatised, divided or nationalised; investor may rely on it for more efficient use of this property; buyer may use it for choosing property which would satisfy his personal needs to the best advantage; seller has to determine the market price of his property that would ensure its competitive ability on the market. To satisfy all the needs described multiple criteria valuation method presented in the paper may be successfully used. To show its efficiency the solution of a sample problem, representing a real case is provided.
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Zhylinska, O., I. Novikova, A. Stepanova, and A. Vikulova. "Assessment Methods of Intellectual Product in Research Universities." Marketing and Management of Innovations, no. 3 (2020): 32–44. http://dx.doi.org/10.21272/mmi.2020.3-03.
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This paper summarizes the arguments and counterarguments within the scientific debate over how to find the best methodology for valuing the intellectual products of research universities. The main purpose of the research is to propose a methodology for evaluating the product of intellectual labour in research universities. The systematization of literary sources and approaches to solving the problem of valuation of intellectual property has shown that, despite the considerable amount of scientific work on the valuation of intellectual property objects, there is no methodology for their evaluation in research universities. This problem is actualized at the stage of transformation of an intellectual product into a full-fledged type of economic activity. This study sheds light on the basic basics of the proposed methodology for determining the technical and economic utility of an intellectual product. The author’s methodology improves the classification of the intellectual property valuation and the basic concepts used in carrying out the valuation, the types of values, methodological approaches to the valuation and calculation of the intellectual property, the baseline information requirements, the evaluation procedure and the calculations. However, particular attention is paid to the main provisions for evaluating the university’s intellectual performance. The developed methodological recommendations will be useful to experts in cost estimation in intellectual property, in rendering independent valuation services, in carrying out internal valuation and in experts in carrying out valuation assessment. The methodological basis of the study is a scientific and practical understanding of the achievements of foreign scientists in the field of intellectual capital theory and analysis of Ukrainian legislation in the field of intellectual property. Methodological tools of the study were methods of economic-mathematical and logical-structural modelling. Research universities are selected as the research object because they are the core of the creation of intelligent and innovative products and the main driver of scientific and technological progress in the country and the world. The research empirically confirms and theoretically proves that the developed methodology for the intellectual activity evaluation of research universities is the basis for organizing and implementing the process of determining the value of objects of intellectual property of the institution. Keywords intellectual property object, intellectual product, intellectual activity, research universities, methods of valuation of intellectual property objects.
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Kucharska-Stasiak, Ewa. "Reproduction of Real Estate Valuation Methodology in Practice. An Attempt at Identifying Sources of Divergences." Real Estate Management and Valuation 22, no. 2 (July 8, 2014): 67–79. http://dx.doi.org/10.2478/remav-2014-0018.
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Abstract The objective of the study is to try and identify the reasons for the detachment of the valuation practice from its methodology. Two methods have been used in the paper: the analysis method and the case study method, under which fourteen property valuation reports posted on websites and two opinions about the property valuation prepared for court purposes in order to detect and identify sources of deviations from the valuation methodology have been analyzed. The study, besides theoretical aspects, includes references to practical application: pointing out directions of changes in legal regulations and national valuation principles, which should help achieve uniformity in interpreting the valuation concept, allowing the reduction of its uncertainty, understood as the uncertainty of a single valuation and uncertainty as the difference between valuations.
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Zavadskas, Edmundas Kazimieras, Arturas Kaklauskas, Saulius Raslanas, and Vida Malienė. "THE APPLICATION OF MULTI-CRITERION METHODS FOR VALUATION OF RECREATION PROPERTY/DIE ANWENDUNG DER MEHRKRITERIELLEN METHODE BEI DER BEWERTUNG VON ERHOLUNGSGRUNDSTÜCKEN." JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT 7, no. 4 (August 31, 2001): 327–33. http://dx.doi.org/10.3846/13921525.2001.10531744.
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Multi-criterion valuation methods are widely used in real estate valuation all over the world. In USA, UK and other countries these methods are part of techniques based on comparative and reinstatement values as well as on income use [1]. A number of problems in the valuation of real property can be eliminated by the methods of multiple criteria analysis, which came into existence only at the second half of the 20th century. Currently, they have become very important in the international practice of the real property valuation. In most cases they are based on market modelling and economic assumptions. Therefore, sometimes they are referred to as separate valuation methods, and classified as modern ones. This article describes a new method of multiple criteria analysis. This method based on the market analysis and valuation principle is in line with the traditional comparative value method, therefore it can be attributed to the group of the indirect comparative value methods. These methods facilitate the universal and more extensive multiple criteria analysis of the property, since they take account of a number of different criteria, ie qualitative, quantitative ones, market conditions. The proposed method can meet the demands and needs of many interested groups since it enables to estimate not only the market value of the property, but also other values, eg investment value, value of use, market value of the current use of the property, etc. This article analyses the theoretical model of the method, which was used to estimate the market value of the recreation premises.
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Pawlak, Zbigniew, and Andrzej Smoleń. "Valuation Methods of Sports Companies." Physical Culture and Sport. Studies and Research 46, no. 1 (December 1, 2009): 243–53. http://dx.doi.org/10.2478/v10141-009-0021-1.
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Valuation Methods of Sports CompaniesThe valuation of sports companies is indispensable during commercial buy and sell transactions, restructuring processes, determining premiums for the purposes of property insurance.For the valuation of sports companies four approaches are possible i.e. assets-based, income-based, market-based and mixed-valuation approaches. For each approach there are specific company valuation methods. Using real-life examples, this paper discusses the following sports companies' valuation methods: book value, adjusted book value, replacement, liquidation, capitalized profit, discounted cash flow, comparative worth, market multiples and German valuation method. The mixed approach using the German method is applied when the output prices from conventional company valuation methods vary too much, and differences in values exceed 25%.From the management accounting perspective the skilful application of valuation methods to sports companies should be regarded as one of the prerequisites for effective management of sports companies.
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Kucharska-Stasiak, Ewa, and Katarzyna Olbińska. "Reflecting Sustainability in Property Valuation - Defining the Problem." Real Estate Management and Valuation 26, no. 2 (June 1, 2018): 60–70. http://dx.doi.org/10.2478/remav-2018-0016.
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Abstract A major topic in discussions about environmental protection is the concept of sustainable development utilizing the economic criteria enhanced by environmental, social and ethical aspects. The concept inspired a new approach to construction and paved the way for the idea of sustainable buildings. Sustainable buildings are expected to offer economic benefits to their owners and tenants that should be reflected in property values. The authors test a hypothesis that the real estate market in Poland still fails to incorporate sustainability in property valuation. The article seeks evidence in support of this hypothesis, as well as attempting to find out why the market does not pay a premium for sustainability. To accomplish the purpose of the research, a systematic literature review, an analysis of the pilot studies available in Poland and a preliminary assessment of the ability of valuation methods to reflect sustainability in property valuations are performed. The focus of the research is on the office property market, one of the fastest growing and most modern segments of the real estate market. The conclusion drawn from the research is that, of all respondents surveyed by international studies, Polish developers, property owners, tenants and valuers know the least about sustainable building and that the evidence of the benefits of sustainable building is still unavailable in the Polish real estate market. Such benefits are rather hypothesized to exist and considered theoretically rather than empirically confirmed. It is possible that the reasons for these findings are the short period of research and problems with distinguishing sustainable buildings from conventional ones, which make it difficult for valuers to reflect the benefits of sustainability in valuations. Nevertheless, a new approach to property valuation encompassing environmental, ethical and moral aspects seems necessary. This would encourage sustainable building and green investment strategies. Sustainable valuation would also be an opportunity for the development of the valuation profession.
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Skarzyński, Andrzej. "RESIDUAL METHOD OF PROPERTY VALUATION." Technological and Economic Development of Economy 12, no. 3 (September 30, 2006): 253–56. http://dx.doi.org/10.3846/13928619.2006.9637749.
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In the paper the residual method as one of the methods used for property valuation by mixed approach is presented. The paper contains the description of the most often used applications of the residual method and two examples of the practical usage of this method. The first example relates to the valuation of a family house being built for the purpose of obtaining a mortage loan to complete construction work. The second example concerns the valuation of an office building considered for purchasing by a potential buyer. The paper ends with the conclusions concerning the conditions of property valuation.
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Bellman, Lina, and Hans Lind. "Valuation standards and methods: are Sweden’s (still) different?" Journal of European Real Estate Research 12, no. 1 (May 7, 2019): 79–96. http://dx.doi.org/10.1108/jerer-04-2018-0020.
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Purpose The purpose of this study is to describe and analyse the methods and standards of valuation used by Swedish professional property valuers when appraising commercial properties and factors affecting those standards. The study builds on a 2002 comparative study of valuers in four European countries by McParland et al. (2002), but focuses specifically on property valuers in Sweden. Design/methodology/approach In 2010-2011, a questionnaire was used in face-to-face interviews with about half of the authorised property valuers in Sweden. Another questionnaire was emailed to all authorised property valuers in Sweden 2015 and again about half participated. Findings Analysis of the results shows some new trends in used and preferred standards and methods. Although Swedish valuers still rely mainly on local guidelines, they now increasingly use international standards and company guidelines, which may indicate a growing, if indirect, form of internationalisation. Swedish valuers still use discounted cash flow as their primary method, but their use of comparative methods has increased. Originality/value The data in this comparative study of valuation standards and methods over time used were collected from a specific group of property valuers authorised through the professional Swedish organisation Samhällsbyggarna (Swedish Professionals for the Built Environment), which contributes to an insight in the presiding of the harmonisation of valuation methods and standards.
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Baffour Awuah, Kwasi Gyau, Frank Gyamfi-Yeboah, David Proverbs, and Jessica Elizabeth Lamond. "Sources and reliability of property market information for property valuation practice in Ghana." Property Management 35, no. 4 (August 21, 2017): 448–66. http://dx.doi.org/10.1108/pm-05-2016-0019.
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Purpose Adequate reliable property market data are critical to the production of professional and ethical valuations as well as better real estate transaction decision-making. However, the availability of reliable property market information represents a major barrier to improving valuation practices in Ghana and it is regarded as a key challenge. The purpose of this paper is to investigate the sources and reliability of property market information for valuation practice in Ghana. The aim is to provide input into initiatives to address the availability of reliable property market data challenges. Design/methodology/approach A mixed methods research approach is used. The study, thus, relies on a combination of a systematic identification and review of literature, a stakeholder workshop and a questionnaire survey of real estate valuers in Accra, Ghana’s capital city to obtain requisite data to address the aim. Findings The study identifies seven property market data sources used by valuers to obtain market data for valuation practice. These are: valuers own database; public institutions; professional colleagues; property owners; estate developers; estate agents; and the media. However, access to property market information for valuations is a challenge although valuers would like to use reliable market data for their valuations. This is due to incomplete and scattered nature of data often borne out of administrative lapses; non-disclosure of details of property transactions due to confidentiality arrangements and the quest to evade taxes; data integrity concerns; and lack of requisite training and experience especially for estate agents to collect and manage market data. Although professional colleagues is the most used market data source, valuers own databases, was regarded as the most reliable source compared to the media, which was considered as the least reliable source. Research limitations/implications Findings from the study imply a need for the development of a systematic approach to property market data collection and management. This will require practitioners to demonstrate care, consciousness and a set of data collection skills suggesting a need for valuers and estate agents to undergo regular relevant training to develop and enhance their knowledge, skills and capabilities. The establishment of a property market databank to help in the provision of reliable market data along with a suitable market data collection template to ensure effective and efficient data collection are considered essential steps. Originality/value The study makes a significant contribution to the extant knowledge by providing empirical evidence on the frequency of use and the reliability of the various sources of market data. It also provides useful insights for regulators such as the Ghana Institution of Surveyors (GhIS), the Royal Institution of Chartered Surveyors (RICS) and other stakeholders such as the Commonwealth Association of Surveying and Land Economy (CASLE) and the Government to improve the provision of reliable property market information towards developing valuation practice not only in Ghana, but across the Sub-Saharan Africa Region. Also, based on these findings, the study proposes a new property market data collection template and guidelines towards improving the collection of effective property market data. Upon refinement, these could aid valuation practitioners to collect reliable property market data to improve valuation practice.
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Gaca, Radosław, Robert Zygmunt, and Michal Gluszak. "Comparative Analysis of Transaction Prices and the Values of Forest Properties in Poland." Forests 11, no. 12 (December 13, 2020): 1323. http://dx.doi.org/10.3390/f11121323.
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Research Highlights: In the paper, we explore systematic discrepancy between sale prices and values of forest properties in Poland. We argue that the systematic valuation bias found is partially caused by the simplified parametric appraisal methodology currently used in Poland. Background and Objectives: Most of the forests in Poland are state-owned, but in recent decades, the market for private forest properties has been dynamically growing. In the paper, we investigate the relations between the actual transaction prices, and the estimated value of forest properties in selected regions in Poland. We hypothesize that sale prices systematically deviate from valuations. An additional question arises regarding the determinants of forest property prices. We hypothesize that due to asymmetric information positive amenities are not fully capitalized in property prices in Poland. Materials and Methods: In the paper, we adopt two regression models used to investigate the valuation accuracy and bias. We test the hypothesis that valuations are unbiased estimates of transaction prices. Results: The results indicate that market prices for forest properties systematically differ from estimated values. Conclusions: Systematic deviation of forest property sales prices from market values may contribute to the imperfect information available to the market participants, especially when information is asymmetrically distributed between buyers and sellers. This may confirm the hypothesis that sellers are not fully aware of the advantages of the property being sold, and provide further explanations for large systematic differences between sales prices and valuations based on parametric valuation methods used in Poland.
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Kucharska-Stasiak, Ewa, and Sabina Źróbek. "An Attempt To Exemplify The Economic Principles In Real Property Valuation." Real Estate Management and Valuation 23, no. 3 (September 1, 2015): 5–13. http://dx.doi.org/10.1515/remav-2015-0020.
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Abstract The economic theory argues that the value of assets, including the value of real property, is influenced by many factors which determine the behavior of operators engaged in market transactions. The knowledge of basic principles and assumptions which underpin the development of value is essential to understanding the methods and procedures of valuation. The thesis, upon which the authors of this article based their theoretical and practical considerations, is formulated as follows: “The knowledge of economic principles of valuation improves the accuracy of valuation and allows for more appropriate interpretation of its results”. Therefore, these factors should be taken into account by appraisers estimating the value of property. Over a dozen so-called key principles of valuation have been formulated in literature. Among them are the principles of anticipation, change, substitution, supply and demand, competition, balance, highest and best use, conformity, and externalities. It is assumed that the most important principle in the valuation of property is the principle of anticipation. Some of the principles are relevant to all the traditional approaches to determining value, while others apply only to selected approaches e.g., the principle of opportunity cost, which is mainly used in valuations using the income approach. The thesis is supported by research results and an analysis of practical examples.
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Hager, David P., and David J. Lord. "The property market, property valuations and property performance measurement." Journal of the Institute of Actuaries 112, no. 1 (June 1985): 19–60. http://dx.doi.org/10.1017/s0020268100041974.
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1.1. The Institute has discussed papers on most aspects of institutional investment in recent years, with the notable exception of property. This is not due to the lack of importance of this investment sector to pension funds and life offices, but perhaps to the greater role of actuaries (rather than surveyors) in the other investment media and to the interest in mathematical models for gilts and equities.1.2. In this paper we have not tried to produce a mathematical model of the property market, a new valuation method for property or solutions to the extensive problems of property performance measurement and indices. We have, however, tried to pull together, in a single paper, the volumes of material on the property market and property valuation methods. We have also tried to set down some of the pitfalls of property performance measurement, which often tend to be overlooked in the relentless pursuit for more statistics in this important area.
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Jansen van Vuuren, David. "Valuing specialised property: cost vs profits method uncertainty." Journal of Property Investment & Finance 34, no. 6 (September 5, 2016): 655–63. http://dx.doi.org/10.1108/jpif-06-2016-0048.
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Purpose The purpose of this paper is to compare the value outcomes of the cost approach to the DCF profits method when valuing specialised property under different scenarios as a test for choice of method or model uncertainty; and to quantify valuation uncertainty under each scenario and to argue for an increasing adoption of the profits method of valuation. Design/methodology/approach A qualitative case study approach was used to analyse four physical valuations performed in practice under four specific scenarios, namely, a business-as-usual scenario, an underperforming business scenario, an expanding capacity scenario and a combined business-as-usual funding a start-up joint venture scenario. Findings The cost approach relative to the DCF profits approach consistently under-values specialised property under business-as-usual and business expanding scenarios while it over-values in instances of underperforming business scenario. Practical implications Financial institutions that predominantly uses or accepts the cost approach for valuing specialised property should consider adopting the DCF profits approach as the default approach when valuing for mortgage lending purposes. Business owners of specialised properties should contract practitioners knowledgeable and skilled in the application of the DCF profits method. Originality/value This paper quantifies choice of method or model uncertainty of four different scenarios of specialised properties where both the cost approach and DCF profits methods of valuation were employed. It suggests the adoption of the DCF profits method as the default method of valuation for specialised property.
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Maleta, Monika. "Methods for Determining the Impact of the Temporal Trend in the Valuation of Land Property." Real Estate Management and Valuation 21, no. 2 (June 1, 2013): 29–36. http://dx.doi.org/10.2478/remav-2013-0014.
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Abstract The presented case study is to provide various methods of determining the impact of the time trend on the changes in transaction prices of undeveloped land properties. The basis for each property valuation is an analysis of the local market, where the valued property is located. This analysis lies in the implementation of activities related to determining the trend of changes in the prices of real estate and their update on the valuation date, as well as in determining the impact of the various attributes of a property on the formation of a unit transaction price. The valuer making a valuation of a property is required to take into account the changes in price which occur as a result of the passage of time. The price adjustment is done properly if all the changes in price during a certain period of time are taken into consideration. In order to determine the trend of transaction prices, one can use: - a method of comparing property prices by similar pairs, - linear and nonlinear additive models, - nonlinear multiplicative models (e.g., in the form of a multiplicative exponential function, power). The choice of the right method of updating transaction prices depends on the sample size adopted for the analysis of the real estate market. It is also crucial to select the right representative real estate database that best reflects the tested reality. A practical and theoretical research method of the time trend was developed using undeveloped land property price data. An analysis of determining the impact of time on real estate prices has been presented using each of the above mentioned mathematical models. The object of the study was the local market of undeveloped land properties, including sale and purchase transactions conducted in Stoczek Łukowski. A merit analysis of the methods used and a comparison of the obtained results have also been provided.
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Czaplińska, Mirosława, Małgorzata Rymarzak, and Dariusz Trojanowski. "Fuel Station Valuation under Polish and RICS Standards." Real Estate Management and Valuation 25, no. 2 (June 27, 2017): 20–32. http://dx.doi.org/10.1515/remav-2017-0010.
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Abstract In the last few years, there has been a visible change in the structure of the fuel station market in both Poland and the United Kingdom. The changes taking place both in the fuel station market structure and the management forms of fuel stations, along with the increasing significance of convenience goods sales, result in the necessity of verifying the existing Polish valuation standards of the income approach. Moreover, there is an urgent need to develop specific fuel station valuation guidelines. Fuel station valuation requires both the specific approach and profits method adjustment to be able to account for the specificity of the valuation. The universal character of property valuation in Poland cannot result in ignoring the specificity of fuel station valuation and the market where it operates. Property valuers undertaking valuations of this type of facilities must be familiar with the rules operating on the fuel station market. This paper focuses on the comparison analysis of the fuel station market structure in Poland and the United Kingdom along with the specificity of the way fuel stations operate. Its emphasis is on the comparison analysis of fuel station valuation methods under Polish and RICS standards in order to show their similarities and differences. The aim of the paper is to present the methods of fuel station valuation in Poland and the United Kingdom, though mainly to show the areas of changes in the Polish valuation standards with regards to the profits method under the income approach that would take into account the specificity of fuel stations and their market.
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Dimopoulos, Thomas, and Nikolaos Bakas. "Sensitivity Analysis of Machine Learning Models for the Mass Appraisal of Real Estate. Case Study of Residential Units in Nicosia, Cyprus." Remote Sensing 11, no. 24 (December 17, 2019): 3047. http://dx.doi.org/10.3390/rs11243047.
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A recent study of property valuation literature indicated that the vast majority of researchers and academics in the field of real estate are focusing on Mass Appraisals rather than on the further development of the existing valuation methods. Researchers are using a variety of mathematical models used within the field of Machine Learning, which are applied to real estate valuations with high accuracy. On the other hand, it appears that professional valuers do not use these sophisticated models during daily practice, rather they operate using the traditional five methods. The Department of Lands and Surveys in Cyprus recently published the property values (General Valuation) for taxation purposes which were calculated by applying a hybrid model based on the Cost approach with the use of regression analysis in order to quantify the specific parameters of each property. In this paper, the authors propose a number of algorithms based on Artificial Intelligence and Machine Learning approaches that improve the accuracy of these results significantly. The aim of this work is to investigate the capabilities of such models and how they can be used for the mass appraisal of properties, to highlight the importance of sensitivity analysis in such models and also to increase the transparency so that automated valuation models (AVM) can be used for the day-to-day work of the valuer.
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Renigier-Biłozor, Małgorzata, and Maurizio d’Amato. "The Valuation of Hope Value for Real Estate Development." Real Estate Management and Valuation 25, no. 2 (June 27, 2017): 91–101. http://dx.doi.org/10.1515/remav-2017-0016.
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Abstract In the valuation of a property subject to development, the valuer may consider the potential aspect of the value of both land to be improved and a building to be refurbished. These kinds of valuations are complex, especially when a prudent assessment of value is required. In general terms, all properties may have potential development which, in some cases, can be termed “hope”. In particular, uncertainty regarding the change in the legal framework may create expectations as to the uncertain variation of property value in the future. In these cases, it may be necessary to deal with hope value or future value, trying to reach the value of a property subjected to uncertain changes. Hope value is the difference between the existing use value and the price that the market might pay for future transformation. The main aim of the paper is the elaboration of a methodology to determine the hope value. In this work, a real option model for the valuation of hope value in the real estate market will be applied to a small sample of residential properties located in Olsztyn that are subject to possible transformation. The possibility of a transformation may create expectations and may influence the value of the property. Although the applications of these methods to real estate valuation are fairly recent, the International Valuation Standards have included real option theory in the income approach as a valuation method since 2011.
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d’Amato, Maurizio. "Supporting property valuation with automatic reconciliation." Journal of European Real Estate Research 11, no. 1 (May 8, 2018): 125–38. http://dx.doi.org/10.1108/jerer-01-2017-0005.
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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.
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Sayce, Sarah, and Owen Connellan. "Implications of valuation methods for the management of property assets." Property Management 16, no. 4 (December 1998): 198–207. http://dx.doi.org/10.1108/02637479810243383.
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Kazak, Jan, Jarosław Malczyk, David Garcia Castro, and Szymon Szewrański. "Carbon Sequestration in Forest Valuation." Real Estate Management and Valuation 24, no. 1 (March 1, 2016): 76–86. http://dx.doi.org/10.1515/remav-2016-0007.
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Abstract Strong links between the condition of the environment and the economy have recently resulted in a number of actions aiming to implement environmental considerations in economic calculations. This is accompanied by the development of the concept of ecosystem services, characterizing the benefits that the environment provides humankind with. The identification of these services is reflected in their economic values. Hence, the concept of the valuation of ecosystem services. Therefore, if the service provided by the environment takes on a financial value, we can consider it as income from the property containing the analyzed ecosystem. Of course, in order to speak in practice of the income approach in the valuation of such properties, there must be actual financial flow as income for the real estate owner. However, in the era of big economic changes and the implementation of a number of financial instruments (e.g., subsidies for a particular use of property, trade of CO2 emission rights), it seems reasonable to consider the possibility of property valuation by the valuation of ecosystem services. A part of this research focused on a service of forest ecosystems service that is carbon sequestration. The selection was made due to the implementation of the climate policy at the European level and its association with the trade of CO2 emission rights. The analyses were performed for two test sites characterized by different determinants (composition of species in the tree stand, age of the stand, degree of compactness of the tree stand, etc.). The low level of difficulty of the test methods used enables non-experts (persons with no qualifications in forestry) to carry out valuations themselves. The research is a contribution to the debate on the possibility of accounting for carbon sequestration in forest property valuation based on the income approach, but the issue still requires clarification of certain elements.
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Michaletz, Vladimir, and Andrey I. Artemenkov. "The transactional asset pricing approach." Journal of Property Investment & Finance 37, no. 3 (April 10, 2019): 255–88. http://dx.doi.org/10.1108/jpif-10-2018-0078.
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Purpose The purpose of this paper is to present a methodology based on the transactional asset pricing approach (TAPA) and to illustrate the application of TAPA within the context of professional property valuation. Design/methodology/approach The TAPA is a novel analytical valuation methodology recasting the traditional derivations of the income approach techniques, including DCF, from a transactional perspective based on the principle of inter-temporal transactional equity, instead of the conventional investor-specific view originating from I. Fisher (1907, 1930). Findings The authors present DCF analysis as a specific case of a more general TAPA approach to valuation under the income method. This also leads to novel analytical derivations of the Direct income capitalization, Gordon, Inwood, Hoskold and Ring models. Based on the TAPA framework, the authors also research the value-enhancing effects of benchmark market volatility on the subject property value and conclude that such effects can be statistically significant depending on the DCF analysis period. Research limitations/implications The research has a direct bearing on time-variable discount rate forecasting capabilities, as it uses a time-variant structure for the discount rates. Practical implications Using the US Case-Shiller and BLS rental indices as a valuation benchmark, the paper contains an example of applying the general TAPA framework to value a notional property under a TAPA’s DCF version. Such property valuations can be easily replicated in practice – especially in the context of equitable/fair value determination under the International Valuation Standards Council valuation standards. Social implications TAPA is a deductive principles-based theory of asset valuation especially fit for the transactional and illiquid asset valuation contexts – thus enabling a more efficient pricing for such assets in a sense of reflecting the transactional interests of the parties more closely than achievable under the conventional valuation methods. Originality/value TAPA is an original filiation of research with roots going as far back as Aristotelian Catallactics. It contains analytical formalizations of certain transactional equity principles.
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Volchek, R. "DISCUSSION ASPECTS OF PROPERTY VALUATION FOR TAX PURPOSES." Аграрний вісник Причорномор'я, no. 94 (December 25, 2019): 64–75. http://dx.doi.org/10.37000/abbsl.2019.94.11.
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The author's vision on the process of estimating the value of real estate objects for the purposes of taxation is given. It is established, that the current norms of valuation of property for taxation purposes, established by the main regulator of valuation activity in Ukraine − the State Property Fund of Ukraine, deprive transparency the process of valuation of property in our state, and offset personal accounting judgments when assessing real estate. Opacity and distortion of the current norms of normative legal acts regulating the process of valuation of property and property rights in Ukraine, as well as the norms of the International Financial Reporting Standards (further − IFRS) 13 «Fair Value Measurement» during the valuation of real estate objects, consists, according our opinion, representatives of the State Property Fund of Ukraine during the approval of property valuation reports for tax purposes are based on the estimated value of the objects, which should be determined solely on the basis of the prices of real estate offers and solely by means of a comparative approach. But, IFRS 13 «Fair Value Measurement» and National Standard 1 «General Principles of Valuation of Property and Property Rights» demand to determine the value of objects of evaluation in three methods: costly, cost-effective and comparative. Recommendations are introduced, implementation of which will allow to observe the transparency and correctness of determining the value of property for tax purposes.
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d'Amato, Maurizio, Nikolaj Siniak, and Giulia Mastrodonato. "“Cyclical assets” and cyclical capitalization." Journal of European Real Estate Research 12, no. 2 (August 8, 2019): 267–88. http://dx.doi.org/10.1108/jerer-05-2018-0022.
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Purpose The purpose of this study is providing a possible methodological solution to the valuation of cyclical.assets. International Valuation Standards introduce a brand new definition of property: the cyclical asset (International Valuation Standards Council 2017, IVS 105, p. 39 and p. 41). Among different property valuation methods, normally this kind of properties is appraised using income approach. In this group of methodology, the opinion of value is based on a proportional relationship between property value and rent. In the past years, a group of methods called cyclical capitalization has been proposed (d’Amato, 2003; d’Amato, 2013;d’Amato, 2015; d’Amato, 2017a; d’Amato 2017 b; d’Amato, 2017c). This method proposes an integration between property valuation and property market cycle. Design/methodology/approach Cyclical capitalization method is applied using a time series of property market rent of offices in prime location in the South Bank area in London. It consists of the determination of more than one all-risk yield to reproduce the property market cycle. Findings A comparison between the cyclical capitalization and two traditional capitalization rate shows how the proposed model is able to provide a stable opinion of value. Research limitations/implications The method may represent a contribution for the determination of the value of cyclical assets or for the mortgage lending value. Practical implications This paper provides the possibility to have a property valuation method less sensitive to upturn and downturn of the property market. Social implications The valuation based on cyclical capitalization are less sensitive to the upturn and the downturn of the market. Originality/value It is one of the first scientific paper addressing the problem of the determination of the value of cyclical assets.
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Adams, A. T., P. M. Booth, and B. D. MacGregor. "Property Investment Appraisal." British Actuarial Journal 5, no. 5 (December 1, 1999): 955–82. http://dx.doi.org/10.1017/s1357321700000763.
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ABSTRACTThis paper considers the application of discounted cash flow (DCF) techniques to the analysis of the property investment market. The traditional method of property valuation is briefly outlined and its shortcomings highlighted. An alternative DCF procedure is derived to calculate the present value of a property investment. This method will be familiar to actuaries, but is not always used in property disciplines. The sensitivities of this formulation to changes in the force of real interest, force of real rental growth and force of inflation are derived. It is suggested how these formulae may be used for property investment appraisal and risk analysis. We conclude that DCF offers a more flexible and accurate means of estimating the value of a property, and that property valuers, financial economists and actuaries should work jointly to develop practical DCF methods. However, so long as traditional methods of valuation prevail, a rational investor must use both methods to identify mispriced property assets. There have been few property contributions to the actuarial literature in the United Kingdom; this paper is intended to build on the few previous papers and suggests directions for future work.
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Metzner, Steffen, and Andreas Kindt. "Determination of the parameters of automated valuation models for the hedonic property valuation of residential properties." International Journal of Housing Markets and Analysis 11, no. 1 (February 5, 2018): 73–100. http://dx.doi.org/10.1108/ijhma-02-2017-0018.
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Purpose The development and testing of the hedonic methods for property valuation require statistical analysis and professional preparation of relevant databases. As a first step, the presumable relevant influencing variables (parameters) have to be determined. Previous studies have shown a large variety of parameters which overlap or deviate from each other. This study aims to collect, systematise and structure different parameters for the further development and testing of hedonic models. Design/methodology/approach The study comprises a detailed research and deeper analysis of previous studies regarding the hedonic valuation (mainly for residential properties). Flanking areas of examination serve, if they are appropriately suitable, as supplements (e.g. performance analysis and regression). Parameters are extracted from a wide range of literature, compared and integrated into an overall presentation of the results. Findings In total, 407 parameters were extracted from previous studies on hedonic valuation and performance analysis. Because of various definitions of some parameters in the literature, the current paper combined them in one meaning to avoid misunderstandings in further analysis. Higher-level (global) and lower-level (specific) parameters are contained/described in the final list. The result of this study identifies up to five levels of parameters (within the relevant hierarchy). Research limitations/implications The parameters have not yet been statistically tested. The relevance of individual parameters has to be tested with relevant corresponding databases and statistical methods (e.g. correlation and regression). Practical implications To manage larger real estate portfolios, there is a need for regular property valuations. From this perspective, there is a great interest related to the optimisation of the valuation costs, valuation quality and valuation duration. Hedonic methods are considered as an efficient way of performing these valuation tasks. However, further suitable models and parameters are needed. The study describes parameters that can be appropriate for the development of relevant models and creates a structured parameters list, providing the technical basis for the latter. This structured parameter list is substantiated by the evaluation of the existing research. Social implications Property values represent a significant asset for the national economy and for the individual wealth/welfare. The development of property value in a national economy is also relevant for politics, economy and society. The use of hedonic methods and the knowledge of important individual parameters can contribute towards assessing and substantiating the effect of political decisions on the value of real estate. Originality/value For the first time, a comprehensive and structured analysis on the value of the relevant parameters used in hedonic methods is performed. Thereby a large number of parameters were identified which question the stability of the results in respective individual studies. In addition, the newly developed hierarchy of parameters can serve as the basis for further research.
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Dmytrów, Krzysztof. "Calibration of attributes influence in the process of real estate mass appraisal by using decision-making methods." Przegląd Statystyczny 66, no. 4 (April 30, 2020): 287–308. http://dx.doi.org/10.5604/01.3001.0014.0953.
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There are situations in the real estate market in which a large number of properties have to be valued at the same time. In such cases it is advisable to use mass valuation methods. These methods involve estimating the value of a property on the basis of the values of the attributes defining it. The aim of the paper is to calibrate the influence of attributes on unit values of properties in mass appraisal in order to minimise the valuation error. The research was conducted for 318 residential properties located in Szczecin. The Szczecin Algorithm of Real Estate Mass Appraisal was used along with the econometric, statistical and expert approaches. The econometric approach is based on the ridge regression model, the statistical approach on the partial Kendall T correlation coefficients, and the expert approach on the AHP method. The quadratic programming was co-employed with the statistical and expert approaches in order to minimise the mean square error (MSE) of the valuations. The econometric and statistical approaches with the minimisation of the MSE generated best results. The least accurate results were obtained by means of the statistical and expert approaches without the minimisation of the MSE. However, even though the optimisation of the MSE improves the quality of valuations, it also narrows down their volatility, which might make the valuation of properties from the outside of a given database more problematic.
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Singh, Sumanjeet, and Minakshi Paliwal. "Exploring a Sense of Intellectual Property Valuation for Indian SMEs." International Journal of Asian Business and Information Management 5, no. 1 (January 2014): 15–36. http://dx.doi.org/10.4018/ijabim.2014010102.
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As intellectual property (IP) has become an integral part of business strategy, the valuation of these assets has become more and more critical. Consequently, the strategic decisions of Indian SMEs also increasingly depend on understanding the economics affecting the value of these assets and most crucially appraising the approximate value of their IP. In this light, the paper reviews the principal approaches and methods used to evaluate an IP asset and proposes a framework to help the Indian SMEs to select an appropriate approach for effective valuation of their IP. In the background, paper discusses various scenarios where IP valuation is required and needed for SMEs and also explores some problems and issues generally faced/reported by the Indian SMEs in IP valuation. Further, the paper examines the broadening set of channels through which SMEs can exploit their IP. The paper provides five constructive building blocks (descriptions of IP assets, valuation purpose, influencing factors, valuation premise and Standardizing IP valuation) for Indian SMEs to choose a viable approach. The paper concludes that the selection of an appropriate method depends upon the circumstances surrounding the valuation, including the type of IP being valued, the purpose of valuation, the basis of valuation and most importantly the availability of information. The clear understanding of the underlying assumptions and theories behind the various valuation methodologies will assist the Indian SMEs greatly in negotiations for the sales or licensing of their intellectual property.
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Eboy, Oliver Valentine, and Avie Krista Jurah. "Modeling the Commercial Property Value Using Ordinary Least Squared (OLS): A Case Study of Putatan, Sabah and Limbang, Sarawak." Malaysian Journal of Social Sciences and Humanities (MJSSH) 6, no. 3 (March 8, 2021): 290–96. http://dx.doi.org/10.47405/mjssh.v6i3.686.
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Real Estate is an asset that provides profitable investment in return. Commercial property constitutes an important part of the real estate sector. In valuing commercial property, rental value is an essential component for valuers in applying valuation methods. Determining the rental value usually a difficult process as it involves a lot of influence factors. There are various factors that can be used but not the same for every commercial property. Therefore, this paper shows the modeling valuation comparison between two commercial property areas of Putatan and Limbang that represent the outskirts of the city in Sabah and Sarawak respectively. The purpose of this study is to find an effective approach to develop a suitable model for commercial property valuation using OLS and subsequently intends to identify factors that influence the commercial properties for both study areas. The OLS technique was used for this study to develop the property valuation model in Putatan and Limbang. The outcome shows that both study areas can be modeled using OLS for property valuation using similar factors but the Limbang area produced higher accuracy than Putatan based on the adjusted R2 value. However, in terms of the significant of the property value influence factors, both Limbang and Putatan produced different significant factors. Thus, it shows that most of the outskirt city commercial property valuation must be modeled using different influence factors. The model will benefit the local authorities, especially for commercial property valuation. Ultimately, revaluation also can be done easily with low cost, less time and few people needed for this approach.
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Gnat, Sebastian. "Property Mass Valuation on Small Markets." Land 10, no. 4 (April 8, 2021): 388. http://dx.doi.org/10.3390/land10040388.
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The main bases for land taxation are its area or value. In many countries, especially in Eastern Europe, reforms of property taxation, including land taxation, are being carried out or planned, introducing property value as a tax base. Practice and research in this area indicate that such a change in the tax system leads to large changes in land use and reallocation. The taxation of land value requires construction of mass valuation system. Different methodological solutions can serve this purpose. However, mass land valuation requires a large amount of information on property transactions. Such data are not available in every case. The main objective of the paper is to evaluate the possibility of applying selected algorithms of machine learning and a multiple regression model in property mass valuation on small, underdeveloped markets, where a scarce number of transactions takes place or those transactions demonstrate little volatility in terms of real property attributes. A hypothesis is verified according to which machine learning methods result in more accurate appraisals than multiple regression models do, considering the size of training datasets. Three types of models were employed in the study: a multiple regression model, k nearest neighbor regression algorithm and XGBoost regression algorithm. Training sets were drawn from a larger dataset 1000 times in order to draw conclusions for averaged results. Thanks to the application of KNN and XGBoost algorithms, it was possible to obtain models much more resistant to a low number of observations, a substantial number of explanatory variables in relation to the number of observations, a low property attributes variability in the training datasets as well as collinearity of explanatory variables. This study showed that algorithms designed for large datasets can provide accurate results in the presence of a limited amount of data. This is a significant observation given that small or underdeveloped real estate markets are not uncommon.
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Slavinska, Olena, Vyacheslav Savenko, Lyudmila Bondarenko, and Andrey Bubela. "IMPROVEMENT OF METHODS OF THE PROPERTY VALUATION BASED ON MATHEMATICAL AND NUMERICAL MODELING." EUREKA: Physics and Engineering 6 (November 30, 2017): 3–14. http://dx.doi.org/10.21303/2461-4262.2017.00496.
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The conducted researches aimed to analyze modern models and methods of implementation of the comparative approach in property and real estate appraisal, to investigate and evaluate their effectiveness, to suggest ways of further improving the methods of property valuation. To achieve this aim, the authors carried out a series of computational experiments on a computer. The essence of these experiments was the comparative evaluation of the cost of test properties based on the following methods: expert evaluation, solving systems of linear algebraic equations, based on the normalized distances in the space of pricing factors and the correlation-regression method. An analysis was made of the influence of methods of digitizing the initial data (pricing factors) on the final cost of real estate. On the basis of the studies, prospective ways and directions for further improvement of the methods of property valuation are determined.
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Ji, Hyun-soo, and Sung-Soo Seol. "A Study on the Valuation Methods of Intellectual Property in Japan." Journal of Korea Technology Innovation Society 22, no. 6 (December 31, 2019): 1164–92. http://dx.doi.org/10.35978/jktis.2019.12.22.6.1164.
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Zavadskas, E. K., A. Kaklauskas, S. Raslanas, and V. Malienė. "THE APPLICATION OF MULTI-CRITERION METHODS FOR VALUATION OF RECREATION PROPERTY." Statyba 7, no. 4 (January 2001): 327–33. http://dx.doi.org/10.1080/13921525.2001.10531744.
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Abidoye, Rotimi Boluwatife, and Albert P. C. Chan. "A survey of property valuation approaches in Nigeria." Property Management 34, no. 5 (October 17, 2016): 364–80. http://dx.doi.org/10.1108/pm-07-2015-0035.
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Purpose The emerging trend in the global real estate valuation practice has led to the development of advanced valuation approaches to replace the traditional methods. The purpose of this paper is to investigate the extent to which real estate valuers practicing in Nigeria are aware and use these advanced approaches in real estate valuation practice. Design/methodology/approach Both traditional and advanced approaches were identified from the literature. An online-based questionnaire survey was administered on estate surveyors and valuers to measure their level of awareness and frequency of use of the identified valuation approaches. The feedback was collated and analyzed using descriptive statistical analysis. Findings The professionals are mostly aware of the traditional methods and always use the “sales comparison method” in practice. In contrast, they are not very aware of the advanced approaches and hence, only use the hedonic pricing model occasionally in practice. Research limitations/implications The study only focuses on the Lagos metropolis, a nationwide survey will produce more comfortable generalizable findings. Practical implications This is a wake-up call for the real estate regulatory bodies and indeed all the real estate professionals in Nigeria to embrace the use of the advanced valuation approaches in practice, in order to remain relevant in the international real estate practice. Originality/value Implementation of the recommendations of this study could help position the Nigerian real estate professionals and the industry for a global exposition.
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Ramanauskaitė, Agnė, and Kristina Rudžionienė. "INTELLECTUAL CAPITAL VALUATION: METHODS AND THEIR CLASSIFICATION." Ekonomika 92, no. 2 (January 1, 2013): 79–92. http://dx.doi.org/10.15388/ekon.2013.0.1413.
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Abstract. Currently, a more significant added value is created by intellectual rather than physical capital; yet, according to the current standards of accounting, only a minor segment of intellectual capital is presented in financial accounts of enterprises as it usually does not satisfy one of the criteria of property recognition in financial accounting, namely reliable valuation. As a result, there is an increasing demand for novel methods of valuation, enabling enterprises to establish reliably the value of intellectual capital or its specific segments of a given enterprise. A number of scholars have dealt with the methods of intellectual capital valuation. However, their works analyze and classify different methods of intellectual capital valuation, and different criteria of classification are employed; hence, there is no universally accepted opinion on the issue. That is why the aim of this research was to generalize a scheme of methods of intellectual capital valuation. The main methods applied in the present study are the synthesis and generalization of academic writings, including content analysis. The results of the research and its conclusions are based on the analysis of academic investigations conducted by various authors and the resulting publications. Results. The article generalizes the methods of intellectual capital valuation, suggested by a number of scholars, provides comparisons, reveals the multiplicity of the methods, and highlights the unlimited research of the academic field. Besides, the main classifications of methods of intellectual capital valuation are provided, and the applied criteria are defined. Conclusions. It was established that more than sixty different methods for the valuation of the intellectual capital of an enterprise are available. The results of the research show that these methods are classified according to the four following features. Correspondingly, a classification scheme of intellectual capital valuation methods has been developed. It has been established that most methods of intellectual capital valuation are based on scorecard, they assess specific components; of intellectual capital and in the process of valuation do not employ monetary units of measurement. Tis reveals a lack of the studies that focus on the financial aspect of intellectual capital valuation methods.Key words: intellectual capital, valuation, valuation methods, classification of methods
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Kuraś, Piotr. "DESCRIPTION OF THE PROPERTY VALUATION PROCESS IN POLISH CONDITIONS." Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie 20, no. 3 (September 30, 2019): 61–73. http://dx.doi.org/10.5604/01.3001.0013.7240.
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The study attempts to describe the property valuation process in the context of regulations in force In Poland. For this purpose, to this end, the current legal acts, professional standards of real estate appraisers as well as institutional and economic conditions were analyzed. The study starts with the characterization of the property at the subject of valuation, the types of determined values, then the silhouette of the real estate appraiser as a professional authorized to valuation of the property was presented. The most important part of the study, from the point of view of the study goal, is the description of the process of valuation of real estate in Polish conditions. This paper presents a general valuation model, which the difficult and complex problem of valuation presents in a comprehensive, consistent and logical way. Various research approaches have been used for the purpose of the study. Qualitative approach based on observation, interview, analysis of dispersed sources allowed to formulate research assumptions. Next, methods of scientific inference were used, mainly analysis and synthesis. In the paper, due to the aim, mainly the Polish literature on the subject was used as well as legal acts and other sources of information.
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Frey, Bruno S. "Evaluating Cultural Property: The Economic Approach." International Journal of Cultural Property 6, no. 2 (July 1997): 231–46. http://dx.doi.org/10.1017/s0940739197000313.
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AbstractThe preservation of cultural heritage is costly and one has to decide if and which items of cultural heritage are worth preserving. A method for determining the value of cultural heritage is therefore needed. In economics, several evaluation procedures are applied. This article briefly comments on impact studies and willingness- to-pay studies (hedonic market approach and the travel cost approach) and then focuses on contingent valuation surveys. The application of contingent valuation on the arts and related problems are discussed. Finally, the article combines the evaluation methods with democratic decisions by referenda. Switzerland presents an example of referenda held on art policy.
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Meszek, Wiesław. "PROPERTY VALUATION UNDER UNCERTAINTY. SIMULATION VS STRATEGIC MODEL." International Journal of Strategic Property Management 17, no. 1 (April 3, 2013): 79–92. http://dx.doi.org/10.3846/1648715x.2013.782165.
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Uncertainty is a real and universal phenomenon in property valuation. The sources of uncertainty premises originate in the market's specific character, particularly in its informative inefficiency. The degree of uncertainty will vary according to the level of market activity. The result of this uncertainty for the process of property valuation is the impossibility of the measurement of the market value weights and unknown reliability of the real estate transaction prices. In practice, the market value of each property is based on prices under the assumption that the market is efficient; however in reality, prices do not fully reflect the available information. The reasons are, among others, low transparency of the market and confidentiality of transactions let alone the market imperfections. In terms of information inefficiency of the real estate market, statistical methods are ineffective for property valuation, therefore there is a need to use methods and models taking uncertainty into consideration. This paper looks at the way in which uncertainty can be incorporated into the explicit model of sales comparison approach (pairwise comparison method). One model focuses on the application of the Monte-Carlo simulation and the other on the game theory.
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Burada, Cristian Oliviu, and Traian Cristian Demetrescu. "Historical Real Estate Valuation by Cost Approach." Applied Mechanics and Materials 880 (March 2018): 371–76. http://dx.doi.org/10.4028/www.scientific.net/amm.880.371.
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Compared to modern buildings, historical real estate features features that give them a special status: the architectural style of the epoch, the old materials or the built-in building methods, the high rehabilitation costs or the legal restrictions on their intervention. Therefore, in evaluating a historical real estate property, evaluators need to undertake additional, sometimes atypical, steps compared to assessing a modern property. Assessing a historical real estate property by cost has particularities that distinguish it from the assessment of a modern building.
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Štubňová, Michaela, Marta Urbaníková, Jarmila Hudáková, and Viera Papcunová. "Estimation of Residential Property Market Price: Comparison of Artificial Neural Networks and Hedonic Pricing Model." Emerging Science Journal 4, no. 6 (December 1, 2020): 530–38. http://dx.doi.org/10.28991/esj-2020-01250.
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The correct real estate property price estimation is significant not only in the real estate market but also in the banking sector for collateral loans and the insurance sector for property insurance. The paper focuses on both traditional and advanced methods for real estate property valuation. Attention is paid to the analysis of the accuracy of valuation models. From traditional methods, a regression model is used for residential property price estimation, which represents the hedonic approach. Modern advanced valuation methods are represented by the artificial neural network, which is one of the soft computing techniques. The results of both methods in residential property market price estimation are compared. The analysis is performed using data on residential properties sold on the real estate market in the city of Nitra in the Slovak Republic. To estimate the residential property prices, artificial neural networks trained with the Levenberg-Marquart learning algorithm, the Bayesian Regularization learning algorithm, and the Scaled Conjugate Gradient learning algorithm, and the regression pricing model are used. Among the constructed neural networks, the best results are achieved with networks trained with the Regularization learning algorithm with two hidden layers. Its performance is compared with the performance of the regression pricing model, and it can state that artificial neural networks can considerably improve prediction accuracy in the estimation of residential property market price. Doi: 10.28991/esj-2020-01250 Full Text: PDF
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Mahkamova, M. A. "Market-based methods of estimation of loss of value intellectual property at enterprises of the fuel and energy sector." E3S Web of Conferences 216 (2020): 01174. http://dx.doi.org/10.1051/e3sconf/202021601174.
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The issues of assessing the loss of intellectual property value in the market conditions at energy sector enterprises are studied. The cost approach method is revealed, which implies taking into account the cost of reproduction of the intellectual property being valued in current prices less depreciation, as the most effective method of intellectual property valuation. The article suggests the author's approach to grading the estimation of lost utility of intellectual property.