Multilevel Methodology Approach for the Construction of Real Estate Monthly Index Numbers

2015

AbstractIn this paper, we evaluate price indices and hedonic price indices for Italian real estate data using multilevel models. The methodology is based on a random coefficient panel data model. We propose a Laspeyres-type price index and hedonic prices indexes based on some characteristics of the sold properties. The multilevel hierarchical analysis has the advantage of allowing the appraisal analysis for groups, and identified in the same sample data the hierarchical structures of market segmentation according to the parameters of the real estate segment. It allows getting a lot of regression functions as the number of groups identified. Obviously, this depends on the sample size and the…

An Estimative Model of Automated Valuation Method in Italy

2017

The Automated Valuation Method (AVM) is a computer software program that analyzes data using an automated process. It is related to the process of appraising an universe of real estate properties, using common data and standard appraisal methodologies. Generally, the AVM is based on quantitative models (statistical, mathematical, econometric, etc.), related to the valuation of the properties gathered in homogeneous groups (by use and location) for which are collected samples of market data. The real estate data are collected regularly and systematically. Within the AVM, the proposed valuation scheme is an uniequational model to value properties in terms of widespread availability of sample …

Automatic research of the capitalization rate for the residential automated valuation: an experimental study in Cosenza (Italy).

2017

When a market oriented approach is not applicable because of the lack of comparable sales data (Ciuna et al. 2014a), International Valuation Standards suggest the use of the Income Approach, which has the task of simulating the market through an economic and financial scheme. The central question of this approach is due to the quantification of the capitalization rate, whereas it is generally extracted in a market segment different from that of the subject. This paper intends to propose an automated valuation model of the capitalization rate based on a real estate database built through a computerized geocoding automatic procedure, starting from the application of statistical models of mult…

Automated Valuation Methods in Atypical Real Estate Markets Using the Mono-parametric Approach

2017

The appraisal objectivity depends on the possibility to quickly and easily access to reliable real estate data in order to apply appropriate appraisal approaches. In order to ensure the objectivity of the real estate appraisals, in recent years Automated Valuation Methods (AVM) have been developed, integrating computerized real estate databases and programming languages. The Automated Valuation Methods proposed at international level usually recur to regression models, aimed to return appraisal equations based on reliable real estate databases. This approach is not applicable in some markets where lack of data does not allow the implementation of regression models. This paper proposes to im…

Property prices index numbers and derived indices

2014

Purpose – A useful instrument to understand and examine the inner workings of the property trade is devising index numbers of property prices based on historical sequences of market prices. The present work aims at the definition of index numbers of property prices, proposing an innovative methodology compared with what usually recurs in literature. The purpose of this paper is to discuss these issues. Design/methodology/approach – The analysis proposed, based on the mechanisms of formation of stock indices, investigates the analogies between stock and property information, according to the peculiarities of the property trade, leading to a methodology approach, derived from Simple Price In…

Repeat Assessed Values Model for Housing Price Index

2017

Abstract This study proposes an innovative methodology, named Repeat Appraised Price Model (RAV), useful for determining the price index numbers for real estate markets and the corresponding index numbers of hedonic prices of main real estate characteristics in the case of a lack of data. The methodological approach proposed in this paper aims to appraise the time series of price index numbers. It integrates the principles of the method of repeat sales with the peculiarities of the Hedonic Price Method, overcoming the problem of an almost total absence of repeat sales for the same property in a given time range; on the other hand, the technique aims to overcome the limitation of the repeat …

The Multilevel Model in the Computer-Generated Appraisal: A Case in Palermo

2017

The construction of a mass appraisal model requires the preliminary study of the real estate market, the sampling of sold properties, the development of a forecasting model and the verification of the appraisal results. They are generally computerised methods, that work with geo-referenced data. This experimental work has proceeded to build a mass appraisal model, collecting a data sample of sales of apartments in the city of Palermo, in the five years 2008–2012, using a multivariate statistical model (multilevel), testing the results and providing the operating applications in a scheme of online real estate valuations.

The valuation error in the compound values

2013

In appraising the “valore di trasformazione” the valuation error is composed by the error on market value and the error on construction cost. In appraising the “valore complementare” the valuation error is composed by the error on market value of complex real property and on market value of the residual part. The final error is a function of the partial errors and it can be studied using estimative and market ratios. The application of the compounds values to real estate appraisal misleads unacceptable errors if carried out with the expertise.

Real estate surfaces appraisal

2014

In the appraisal of the market value of the properties are applied two important surface indexes: the market surface ratio of the secondary surfaces and the ratio of the site value to total value (allocation method). The measure of both these indexes can be revealed difficult: the data collection of the surface trade ratio in the market can get different results and in practice often the valuer refolds on the fixed coefficients brought in the handbooks and in the circulars of the public administration; the appraisal of the ratio of the site, especially in the central zones and for ancient buildings, where besides the incidence is higher, is developed extrapolating the ratios from the periph…

Automated Procedures Based on Market Comparison Approach in Italy

2017

The question about objective valuation is linked on the one hand to the identification of a large number of reliable sale data, on the other hand to the ability to control the critical evaluation protocol. Automating the valuation process, ensured by computerization of real estate data properly detected, provides a concrete answer to the problem of objectivity, allowing a significant control of the subjective component which characterizes the more traditional appraisals. Automatic methods traditionally proposed at international level are often set on multiple regression models, designed to build prediction functions that are valid throughout the study area, calibrating the coefficients on t…

Il saggio di sconto variabile nella stima analitica delle colture arboree coetanee.

2003

L’Allocation Method nella stima delle aree edificabili

2010

The allocation method does value the building areas on the base of the exchange coefficient, but sometimes it is applied in an uncritical way. Following the traditional appraisal is it possible to precise the methodological conditions. The study means to demonstrate that the market value of the building area is obtained multiplying the construction cost by the ratio between the exchange coefficient and its complementary one. The new formulation considers the effective costs and proceeds distribution in the time, with the cash flows analysis, and moreover concurs to express convenience judgments for building area transactions.

The Expertise in the Real Estate Appraisal in Italy.

2014

The study focuses on real estate expertise in Italy considering: the market surface ratios, proposing a series of tests designed to predict the influence of these surfaces on the result of the valuation; and the coefficients of the not surface characteristics providing a measure of the estimation error induced by their use. Overall, the study aims to bring out on a rational level the deficiencies, inaccuracies and errors of the valuations based on the expertise when it is applied to the real estate market. In Italy the application of valuation standard is in the early stages of launching.

Parametric measurement of partial damage in building.

2015

The valuation of the property damage is a double appraisal that considers a before situation and an after situation to the damage, reported both to the same moment. An elementary measure of the partial damage is represented, in a first approximation, by the restoration’s cost, when the return of the original situation is possible and economically profitable, this last circumstance imposes that the cost is great or equal to the suffered damage. In the building practice, the restoration of the buildings is often combined with operations of substitution and integration. For the indemnity of the partial damage, the restoration’s cost also includes the lost incomes of the property for the period…

Linee guida per la rilevazione dei dati del mercato immobiliare. Prima parte.

2011

Le “Linee guida per la rilevazione dei dati del mercato immobiliare” propongono una serie di norme uniformi e condivisibili da parte dei valutatori e dei professionisti volte a fornire un comune strumento di rilevazione con il quale raccogliere, archiviare e scambiare i dati e le informazioni del mercato immobiliare.Il documento è diviso in due parti.

Appraisal Value and Assessed Value in Italy.

2015

The appraisal value is an appraiser's opinion (not determination) of the current worth of a property on the real estate market. The assessed value is the value placed on real estate property by government assessors for determining ad valorem taxes. Assessed value is used rarely as basis for appraisal value. The Italian appraisal practice is characterized by valuations developed in subjective opinions formulated by the valuers, according to the experience and the competence rather than on the survey of the market data of comparable properties. These opinions are indicated by the term expertise, borrowed from the estimates made in the art market. In Italy, the valuation of the properties appl…

Appraisal of the real estate: the Italian methodological evolution.

2004

Automated procedures based on Market Comparison Approach. A pilot study in the city of Cosenza.

2017

The question about objective valuation is linked on the one hand to the identification of a large number of reliable sale data, on the other hand to the ability to control the critical evaluation protocol. Automating the valuation process, ensured by computerization of real estate data properly detected, provides a concrete answer to the problem of objectivity, allowing a significant control of the subjective component which characterizes the more traditional appraisals. Automatic methods traditionally proposed at international level are often set on multiple regression models, designed to build prediction functions that are valid throughout the study area, calibrating the coefficients on t…

MEASUREMENTS OF RATIONALITY FOR A SCIENTIFIC APPROACH TO THE MARKET- ORIENTED METHODS

2016

Appraisals are based on regression models. Its major application limits are all in situations in which the real estate market doesn’t offer a sufficient number of comparables to implement statistical tools. In low-transaction real estate markets, the most effective appraisal method is the market comparison approach (MCA). The application limits of MCA depend on the degree of similarity between the properties’ characteristics and the reliability of the prices of comparables. In this paper, we introduce some rational measurements in order to guarantee a scientific approach to MCA is associated with the correct prices. Our method is able to restore appraisals of the market value of any type of…

Un’applicazione del MECaR nel contesto catastale italiano.

2004

Linee guida per la rilevazione dei dati del mercato immobiliare. Seconda parte.

2011

Le "Linee guida per la rilevazione dei dati del mercato immobiliare" propongono una serie di norme uniformi e condivisibili da parte dei valutatori e dei professionisti volte a fornire un comune strumento di rilevazione con il quale raccogliere, archiviare e scambiare i dati e le informazioni del mercato immobiliare. Il documento è diviso in due parti. La prima parte riporta i seguenti paragrafi: 1. Introduzione; 2. Mercato immobiliare; 3. Finalità della rilevazione; 4. Definizioni; 5. Scale di misura; 6. Elaborazione dei dati. La seconda parte riporta i paragrafi: 7. Scheda di rilevazione; 8. Fonti dei dati; 9. Informazioni utili; 10. Dati in entrata; 11. Dati non validi; 12. Norme di cond…

The appraisal smoothing in the real estate indeces

2013

The appraisal smoothing is the phenomenon in which the valuation of a property, based on the judgments of appraisers (expertise) rather than on the collection of market data, is influenced by previous valuations performed by the same expert. The most obvious consequence of the exercise of expertise is the tendency to generate in the time a smoothing in the estimated value. This is the first experimental application of the appraisal smoothing theory in Italy. The general spread of real estate valuations, based on prices and average prices refer to a single commercial parameter (usually the surface), generates the natural suspicion that the smoothing effect could be widely disseminated and th…

Appraising building area’s index numbers using repeat values model. A case study in Paternò (CT)

2013

The knowledge of real estate prices trend over time is requisite to understand and expect dynamics of real estate market, and is useful to construct index numbers of real estate prices, numerical indicators exploitable to understand real estate profitability and land phenomena in different market segments. This work aims at the construction of prices index numbers relevant to building area site in the town of Paternò, in Catania province, and at the corresponding hedonic prices index numbers linked to the main real estate characteristics in the space of a period that goes from 2004 to 2012. The proposed methodology allows to build the index numbers of the building area’s unit prices in the …

Il Metodo Estimativo Catastale Rapido.

2004

Stima di un immobile a destinazione alberghiera

2010

Indicazioni metodologiche per il mass appraisal catastale.

2004

Numeri indici applicati ai prezzi immobiliari

2008

Compensation appraisal processes for the realization of hydraulic works in an agricultural area.

2015

The present work aims to rationalize the process of the damages valuation for the construction of hydraulic works, considering the economic and evaluative aspects. The study deal with the damages in the sense of ex post and ex ante valuation for the task of environmental protection and the temporary employment. In this process are examined the technical and practical implications. The problem of the ex post compensation is proposed in the form of an income statement. The valuation of the ex ante damage, during the design of interventions of hydraulic nature, affect the taxation of the hydraulic constraint and the avoided future damages, to compensate in advance. The valuation of the indemni…

RAZIONALIZZAZIONE ESTIMATIVA DELL'EXPERTISE IMMOBILIARE

2013

The Italian appraisal practice is characterized by valuations developed in subjective opinions formulated by the valuers, according to the experience and the competence rather than on the survey of the market data of comparable properties. This practice makes up for the lack of information on the real estate market and to the consequent absence of systematic collections of market data. This tradition is in the cadastral appraisal for the rural (1886) and urban properties (1939). The assessed income is appraised for a representative property and wide to all the other properties with arbitrary scores (pure number). The assessed value is derived from the income with fixed multipliers.

Il saggio di capitalizzazione della terra e dei miglioramenti fondiari

2008

Applicazione degli standard internazionali nella stima immobiliare

2009

Misura dell’incidenza della terra e dei miglioramenti fondiari.

2006

PRODROMI SULLE STIME CATASTALI

2012

Stima del valore di mercato di una villa

2009

L’applicazione dei saggi variabili nella stima analitica del vigneto a tendone.

2003

La stima immobiliare su larga scala: l’analisi multilevel.

2007

La sistematica dei segmenti del mercato immobiliare comprende segmenti i cui immobili presentano una contiguità spaziale e possono identificarsi nell’isolato, nel quartiere, nell’area lottizzata, nella strada e segmenti i cui immobili sono dislocati nel territorio senza una continuità spaziale. Nel mercato immobiliare, la differenziazione della funzione di stima per segmenti, quartieri, ambiti di mercato o strade, è essenziale per l’interpretazione dei prezzi marginali delle caratteristiche. La stima del valore immobiliare è effettuata tenendo conto della struttura gerarchica dei dati. L’analisi multilevel permette di determinare rette di regressione diverse per i diversi ambiti di mercato.