Spatial localization characteristics impact research at value determining of real estate objects situated in small settlements

The article behaves to the property economic measurements implementation using the Comparative Sales independent valuation approach. On example from the real commercial real estate evaluation practice the main methodological principles of valuation object spatial localization characteristics adjustment are considered. According to the described methodology, localization adjustment coefficient is determined by calculation method on the basis of market data cross-correlation regressive analysis. A basic hypothesis is a statement that the relation of valuation object single unit value index to the same of comparable object is determined by its model values relation in the mathematical model of statistical relationship between object single unit value index and its three settlements characteristics: population number; distance to the regional center; area (territory within the settlement boundaries). The research is grounded on mathematical simulation and mathematical statistic quantitative methods. The methodology of adjustment coefficients on investigated price-forming factors definition is based on nonlinear cross-correlation regressive analysis of market data research. This mathematical model is experimentally set by local market data research for the exactly similar real estate objects on the valuation date. It is set that there is observed different statistical relationship level between some of objects price-forming factors and its single square value indexes. The closest statistical relationship exists between settlements population number and single indicator of similar property situated in other compared settlements. It is shown that taking into account some recommended braking coefficients for regressive curve, are published in professional literature, is inadvisable, because it increases the result error is got. Certainly the regression curve characteristics of object spatial localization price-forming factors must be taken into account at adjustment coefficient determination procedure. It is well-proven that methodically correct result of object localization adjustment procedure implementation can be provided only in the case of local market situation research data applying, with determination of the nonlinear regression function characteristics for statistical dependence of single square value index from the object settlements population number. Research is described gives an opportunity to decrease evaluation result uncertainty through the use of new offered approach to mathematical model characteristics definition. The main result of researches described is a possibility to obtain appraising/valuation results with the higher reliability and better accuracy. Researches results are the objective confirmation of the fact, that nowadays methodical base of independent valuation is not able to provide the higher level of this class evaluation objects accuracy results. It does not depend only from an individual appraiser or concrete evaluation company, but, firstly, from unreliable arbitrarily chosen by appraisers adjustments - that usually are "expertly" determined, based on appraiser's own ideas about the dependence of real estate prices on the settlements characteristics. This elementary way of taking these characteristics into account may be a source of result additional errors and its uncertainty level increasing. Future investigations in this direction may deals with the consideration and analysis of other types nonlinear functions application possibilities, that is approximate the regression curve of statistical interdependence between the object single value index and its spatial localization characteristics. The quantitative indexes of absolute and relative methodological errors also may be determined and analyzed in detail in future researches. The importance of those researches for the further development of the independent valuation metrological-information paradigm are confirmed. Practical recommendations for the evaluation results accuracy and reliability increasing are formulated

Price-forming factors choice grounding at intangible assets with negative depreciation independent valuation/appraising

Independent expert valuation/appraising of intellectual property rights objects, such as brands and goodwill, performed by the Costs approach, is based on economic indicators of these intangible assets utility degree, which are connected with the sum of all expenses, related to appraised asset creation and support. These indicators are used as a primary data for these intangible assets market value determination. All these indexes are differently related to the brand value, and relationship between these parameters researches, indisputably, presents both theoretical and practical interest. Because of the cross-correlation relationship closeness between assets market value and these primary data parameters directly depend estimation results accuracy and reliability. The work is verification of basic hypothesis, in obedience to that at the brands valuation/appraising procedure performing as primary data may be recommended to use those indicator parameters, which are characterized with the closest statistical relationship and, respectively, the highest cross-correlation coefficient. Research is based on fact that these intangible assets are able to change their value characteristics in both directions, and change the annual depreciation sign during the separate periods of economic life, made it positive or negative. The purpose of the article is to define the quantitative estimations of cross-correlation relationship strength between economic parameters, which are used as primary data source in Costs approach, and estimated brand value; to perform the comparative analysis of cross-correlation relationship density between the brand value, appraised as intellectual property object, and these economic parameters, that are used as the main price-forming factors; researching and approbation of methodology, based on this cross-correlation relationship closeness quantitative indexes determination, on the certain examples of brands evaluation. Finally, the main purpose is to set the parameter, for which the correlation coefficient is the highest, and which is most expedient to use as primary data source at economic measurements performing

Comparative analysis of models for adjustment procedure in assets value independent evaluation performed by comparative approach

This paper addresses the field of economic measurements of the value of assets, carried out by the methods of independent expert evaluation. The mathematical principles of application, within a comparative methodical approach, of additive and multiplicative models for correcting the cost of single indicator of compared objects have been considered. The differences of mathematical basis of the compared models were analyzed. It has been shown that the ambiguity in the methodology of correction procedure requires studying the advantages and disadvantages of known models, as well as the justification and elaboration of recommendations for their application. Possible forms of correction representation using several alternative units of measurement have been defined; formulas for their interconnection have been built. Analytic expressions have been derived that mathematically describe the algorithms for performing the evaluation correction procedure using various forms of correction representation. The influence of the correction execution model on the characteristics of uncertainty in the independent evaluation result has been analyzed. The scope of two possible types of correction introduction models has been determined. A specific numerical example was used to demonstrate the methodological advantages of using a multiplicative model when summarizing percentage corrections. The independence of the correction result on the sequence of correction introduction has been confirmed. It is proposed to use the selected measure of partial corrections as a criterion for the adequacy of the correction introduction model. It is proved that the result of the independent expert evaluation depends on the chosen model and does not depend on the sequence of correction introduction. The reported study results are important in terms of theory and practice since they make it possible to improve the accuracy and reliability of the result of independent expert evaluation

Порівняльний аналіз моделей виконання процедури коригування при використанні порівняльного підходу у незалежній оцінці вартості активів

This paper addresses the field of economic measurements of the value of assets, carried out by the methods of independent expert evaluation. The mathematical principles of application, within a comparative methodical approach, of additive and multiplicative models for correcting the cost of single indicator of compared objects have been considered. The differences of mathematical basis of the compared models were analyzed. It has been shown that the ambiguity in the methodology of correction procedure requires studying the advantages and disadvantages of known models, as well as the justification and elaboration of recommendations for their application. Possible forms of correction representation using several alternative units of measurement have been defined; formulas for their interconnection have been built. Analytic expressions have been derived that mathematically describe the algorithms for performing the evaluation correction procedure using various forms of correction representation. The influence of the correction execution model on the characteristics of uncertainty in the independent evaluation result has been analyzed. The scope of two possible types of correction introduction models has been determined. A specific numerical example was used to demonstrate the methodological advantages of using a multiplicative model when summarizing percentage corrections. The independence of the correction result on the sequence of correction introduction has been confirmed. It is proposed to use the selected measure of partial corrections as a criterion for the adequacy of the correction introduction model. It is proved that the result of the independent expert evaluation depends on the chosen model and does not depend on the sequence of correction introduction. The reported study results are important in terms of theory and practice since they make it possible to improve the accuracy and reliability of the result of independent expert evaluation.Работа относится к области экономических измерений стоимости активов, осуществляемых методами независимой экспертной оценки. Рассмотрены математические основы применения в сравнительном методическом подходе аддитивной и мультипликативной моделей выполнения корректировок стоимости единичного показателя объектов сравнения. Проанализированы отличия математической основы сравниваемых моделей. Показано, что неоднозначность методологии выполнения процедуры корректировки требует исследования преимуществ и недостатков известных моделей, обоснования и разработки рекомендаций по их применению. Определены возможные формы представления поправок в нескольких альтернативных единицах измерения; получены формулы их взаимной связи. Выведены аналитические выражения, математически описывающие алгоритмы выполнения оценочной процедуры корректировки с применением различных форм представления поправок. Проанализировано влияние модели выполнения корректировки на характеристики неопределенности результата независимой оценки. Определены области применения двух возможных типов моделей ввода поправок. На конкретном численном примере показаны методические преимущества использования мультипликативной модели при обобщении процентных поправок. Предложено в качестве критерия адекватности модели внесения поправок использовать выбранную единицу измерения частных поправок. Доказано, что результат независимой экспертной оценки зависит от выбранной модели и не зависит от последовательности внесения поправок. Полученные результаты исследования имеют важное теоретическое и практическое значение, поскольку позволяют повысить точность и достоверность результата независимой экспертной оценкиРобота відноситься до галузі економічних вимірювань вартості активів, що здійснюються методами незалежної експертної оцінки. Розглянуто математичні засади застосування у порівняльному методичному підході адитивної та мультиплікативної моделей виконання коригувань вартостей одиничного показника об’єктів порівняння. Проаналізовано відмінності математичного підґрунтя порівнюваних моделей. Показано, що неоднозначність методології виконання процедури коригування вимагає дослідження переваг та недоліків відомих моделей, обґрунтування та опрацювання рекомендацій по їх застосуванню. Визначено можливі форми представлення поправок у декількох альтернативних одиницях виміру; отримано формули їх взаємного зв’язку. Виведено аналітичні вирази, що математично описують алгоритми виконання оціночної процедури коригування із застосуванням різних форм представлення поправок. Проаналізовано вплив моделі виконання коригування на характеристики невизначеності результату незалежної оцінки. Визначено області застосування двох можливих типів моделей введення поправок. На конкретному чисельному прикладі продемонстровано методичні переваги використання мультиплікативної моделі при узагальненні відсоткових поправок. Підтверджено незалежність результату коригування від послідовності внесення поправок. Запропоновано у якості критерію адекватності моделі внесення поправок використовувати обраний вимірник часткових поправок. Доведено, що результат виконання незалежної експертної оцінки залежить від обраної моделі і не залежить від послідовності внесення поправок. Отримані результати дослідження мають важливе теоретичне та практичне значення, оскільки дозволяють підвищити точність та достовірність результату незалежної експертної оцінк