Selected Aspects of Determining of Building Facility Deterioration for Real Estate Valuation

AbstractDeterioration of real estate and forecast of the remaining period of its service life are important parameters for the real estate valuation process. In the literature we can find several formulas which determine the deterioration degree depending on the period length of building facility service life. However, as shown by the analysis conducted in this paper, the authors obtained the mixed results depending on the taken approach. Thus, the following questions arise: what to look for when choosing a formula and what degree of risk is associated with the determination of the deterioration degree. It is well-known that the deterioration is influenced by many factors. However for its determination it is required knowledge about its course, character and period of previous service life, carried out repairs, major repairs and modernizations, as well as used materials and durability of a building facility. From the perspective of the analyzes, it seems appropriate to take further researches towards developing of a procedure that will allow to select one of the available formulas, due to the pre-determined parameters (e.g. the quality of building facility maintenance)

Property valuation under uncertainty. Simulation vs strategic model

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

Sales comparison approach indicating heterogeneity of particular type of real estate and corresponding valuation accuracy

The article focuses on heterogeneity of goods, namely real estate and consequently deals with market valuation accuracy. The heterogeneity of real estate property is, in particular, that every unit is unique in terms of its construction, condition, financing and mainly location and thus assessing the value must necessarily be difficult. This research also indicates the rate of efficiency of markets across the types based on their level of variability. The research is based on two databases consisting of various types of real estate with specific market parameters. These parameters determine the differences across the types and reveal heterogeneity. The first database has been set on valuations by sales comparison approach and the second one on data of real properties offered on the market. The methodology is based on univariate and multivariate statistics of key variables of those databases. The multivariate analysis is performed by Hotelling T2 control chart and statistics with appropriate numerical characteristics. The results of both databases were joint by weights with regard to the dependence criterion of the variables. The final results indicate potential valuation accuracy across the types. The main contribution of the research is that the evaluation was not only derived from the price deviation or distribution, but it also draws from causes of real property heterogeneity as a whole.O

A review of application of multi-criteria decision making methods in construction

Construction is an area of study wherein making decisions adequately can mean the difference between success and failure. Moreover, most of the activities belonging to this sector involve taking into account a large number of conflicting aspects, which hinders their management as a whole. Multi-criteria decision making analysis arose to model complex problems like these. This paper reviews the application of 22 different methods belonging to this discipline in various areas of the construction industry clustered in 11 categories. The most significant methods are briefly discussed, pointing out their principal strengths and limitations. Furthermore, the data gathered while performing the paper are statistically analysed to identify different trends concerning the use of these techniques. The review shows their usefulness in characterizing very different decision making environments, highlighting the reliability acquired by the most pragmatic and widespread methods and the emergent tendency to use some of them in combination

Usage theory of the plays for the plot value inquiry

With the plot value inquiry with the help of comparative worth procedure insecurity originates, in particular by the decision for the importance of the value‐influencing signs and the importance of the comparative prices. The play‐theoretical balance solution can play in the worth inquiry process an essential, complementary role, in particular as tools to the mistake and risk estimate. The shown procedure is based on the theory of the plays against the nature which had earlier only few practical interpretations. Santrauka Nustatant žemės sklypo vertę palyginamuoju būdu kyla tam tikrų sunkumu dėl kaina veikiančiu veiksniu ir jų reikšmingumo. Lošimų teorija gali būti kaip svarbi papildoma priemonė, padedanti įvertinti klaidos ir rizikos galimybę. Pasiūlytas įvertinimo procesas pagrįstas “lošimų prieš gamtą” teorija, kuri ankstesnėje praktikoje buvo taikoma labai retai. First Published Online: 21 Oct 201

Usage theory of the plays for the plot value inquiry

With the plot value inquiry with the help of comparative worth procedure insecurity originates, in particular by the decision for the importance of the value‐influencing signs and the importance of the comparative prices. The play‐theoretical balance solution can play in the worth inquiry process an essential, complementary role, in particular as tools to the mistake and risk estimate. The shown procedure is based on the theory of the plays against the nature which had earlier only few practical interpretations. Article in German. Gleichgewichtbetrachtungen für die Grundstückswertermittlung Lošimų teorijos taikymas žemės sklypo kainai nustatyti Santrauka. Nustatant žemės sklypo vertę palyginamuoju būdu kyla tam tikrų sunkumu dėl kaina veikiančiu veiksniu ir jų reikšmingumo. Lošimų teorija gali būti kaip svarbi papildoma priemonė, padedanti įvertinti klaidos ir rizikos galimybę. Pasiūlytas įvertinimo procesas pagrįstas “lošimų prieš gamtą” teorija, kuri ankstesnėje praktikoje buvo taikoma labai retai. First Published Online: 21 Oct 201

The influence of inefficiency of property market on the accuracy of description of property value using linear models of multiple regression

Szacowanie rynkowej wartości nieruchomości opiera się w głównej mierze na cenach transakcyjnych, które powinny w pełni odzwierciedlać charakterystyczne ich cechy. Rynek nieruchomości ze względu na swoją specyfikę jest jednak rynkiem nieefektywnym, na którym ceny transakcyjne w różnym (i nieznanym) stopniu są estymatorami wartości nieruchomości. Zakres referatu, w oparciu o eksperyment statystyczny, obejmuje analizę porównawczą pomiędzy efektami procesu wyceny zrealizowanego w warunkach rynku efektywnego i w warunkach rynku (w różnym stopniu) nieefektywnego.The evaluation of the market value of the property is mainly based on transaction prices which should reflect its characteristic features. In the case of an efficient market, the property price reflects its true value. However, it is more often the case to deal with an inefficient market (within different scope and to a different degree) during the evaluation procedure, which determines its accuracy. This paper contains an example of statistical analysis of a selected property base with the emphasis put on previously mentioned issues concerning the inefficiency of the market using reliability evaluation coefficient

Usage theory of the plays for the plot value inquiry

With the plot value inquiry with the help of comparative worth procedure insecurity originates, in particular by the decision for the importance of the valueâ€influencing signs and the importance of the comparative prices. The playâ€theoretical balance solution can play in the worth inquiry process an essential, complementary role, in particular as tools to the mistake and risk estimate. The shown procedure is based on the theory of the plays against the nature which had earlier only few practical interpretations. Santrauka Nustatant žemÄ—s sklypo vertÄ™ palyginamuoju bÅ«du kyla tam tikrų sunkumu dÄ—l kaina veikianÄiu veiksniu ir jų reikÅ¡mingumo. LoÅ¡imų teorija gali bÅ«ti kaip svarbi papildoma priemonÄ—, padedanti įvertinti klaidos ir rizikos galimybÄ™. PasiÅ«lytas įvertinimo procesas pagrįstas “loÅ¡imų prieÅ¡ gamtą†teorija, kuri ankstesnÄ—je praktikoje buvo taikoma labai retai. First Published Online: 21 Oct 201

Certain aspects of working capital in a construction company

The article analyses the profiles of selected construction companies from the viewpoint of working capital formation and their management strategies applied to working capital. The analysis was performed on the basis of financial ratios. The conclusion is that complex working capital management requires controlling methodology to be developed. A specific character of the construction industry, including operational factors and market requirements, make working capital management a task exceeding the financial sphere, as it embraces the issues of organisation of investment processes, the organisation of production processes and logistics. Apyvartinio kapitalo rodikliai statybos įmonėje Santrauka Šiame straipsnyje, nagrinėjant finansinius rodiklius, analizuojamas pasirinktų statybos įmonių apyvartinio kapitalo formavimas ir jo valdymo strategijos. Atlikta finansinių rodiklių analizė. Daroma išvada, jog kompleksiniam apyvartiniam kapitalui valdyti turi būti sukurta kontrolės metodologija. Dėl gamybos, rinkos ir kitų veiksnių statybos pramonės įmonėse apyvartinio kapitalo valdymas peržengia finansinę sferą, nes apima investavimo, gamybos ir aprūpinimo procesų organizavimą. First Published Online: 21 Oct 2010 Reikšminiai žodžiai: apyvartinis kapitalas, grynųjų pinigų apyvartumas, likvidumo rodiklis, dabartiniai aktyvai, galimybe įvykdyti trumpalaikius įsipareigojimus

Multi-criterion assessment of economic and financial condition of selected construction companies in Poland/Ekonominis ir finansinis pasirinktų statybos kompanijų Lenkijoje daugiakriterinis įvertinimas

Pateikti du statybos kompanijų Lenkijoje įvertinimo metodai. Taikant pirmąjį metodą naudojamas kompleksinis Altmano indeksas. Pasirinktoms kompanijoms buvo nustatyta šio indekso reikšmė. Vertinant antruoju metodu, pasiūlytu autoriaus, pritaikyta naudingumo funkcija (metodas UTA). Šis metodas yra vienas iš daugiakriterinių analizės metodų. Aprašomas UTA metodas, pradinė informacija ir duomenų bazė, panaudota Prefcalc programiniam aprūpinimui. Pateikti programos skaičiavimo rezultatai. Jie palyginti naudojant statybos kompanijų rangavimo abiem metodais reikšmes. First Published Online: 30 Jul 201