Contextualized property market models vs. Generalized mass appraisals: An innovative approach

The present research takes into account the current and widespread need for rational valuation methodologies, able to correctly interpret the available market data. An innovative automated valuation model has been simultaneously implemented to three Italian study samples, each one constituted by two-hundred residential units sold in the years 2016-2017. The ability to generate a "unique" functional form for the three different territorial contexts considered, in which the relationships between the influencing factors and the selling prices are specified by different multiplicative coefficients that appropriately represent the market phenomena of each case study analyzed, is the main contribution of the proposed methodology. The method can provide support for private operators in the assessment of the territorial investment conveniences and for the public entities in the decisional phases regarding future tax and urban planning policies

An artificial intelligence algorithm analyzing 30 years of research in mass appraisals

The research papers issued in scientific journals, for a variety of thematic areas, are not only increasing, nonetheless exhibit an exponential growth over the last years. Accordingly, the researchers, struggle to retrieve information apropos of novel knowledge and get informed in their field, while the rigor and at the same time, the extensive composition of surveys, reviews, and overviews of research works, has become difficult or even impossible, as the number of the available research studies is enormous. However, such reviews, contain vital information regarding the evolution of a scientific subject, the trends of the literature, the most significant concepts, and the concealed associations among research papers, their references, as well as authors’ clusters. In this work, a scientometric study of the relevant to Mass Appraisals literature is for a first time accomplished, regarding the numerical models, computational procedures, and automated methods, utilized in the Mass Appraisals and Property Valuations literature. The study is based on an adequate pool of papers, constituted in Scopus database, utilizing a machine learning algorithm developed from one of the authors, for multidimensional scaling and clustering of the keywords found in the papers’ database, the authors and their cooperation and the co-occurrences of the references in the papers studied. The time-series of the most frequent keywords are also computed, demonstrating the evolution of the mass appraisals research and identifying future trends

2008 Iowa Real Property Appraisal Manual, May 2008

********NOTE: There are nine sections to this manual, all in separate files.************* **********NOTE: Large files may take longer to open******** The basis of real property assessment in Iowa is market value as defined in Iowa Code §441.21. Iowa Code §§ 421.17(17) and 441.21(h) provide that assessment jurisdictions follow the guidelines and rules in this manual to help achieve uniformity in assessments. Assessors are encouraged to use the International Association of Assessing Officers’ Standard on Mass Appraisal of Real Property in their mass appraisal practices. Estimating market value in mass appraisal involves accurately listing properties, developing a sales file that includes the primary influences on market value, and developing models for subsets of properties that share common market influences using recognized mass appraisal techniques. The assessment of an individual property should not be based solely on the sale price. The Uniform Standards of Professional Appraisal Practice (USPAP) standard 6 says “In developing a mass appraisal, an appraiser must be aware of, understand, and correctly employ those recognized methods and techniques necessary to produce and communicate credible mass appraisals.” Accurate listing of property is the basis of a good mass appraisal program. On-site inspection and listing of property is essential in developing a good data base for revaluation. A physical review, including an on-site verification of property characteristics, should be conducted at least every four to six years. Land values should be reviewed every two years. Factors influencing the market of each property type should be identified and collected so that these factors can be considered in the mass appraisal model. It is equally important to maintain the data once it is collected. Accessing local government permit systems should be a part of a good data maintenance program along with an inspection program. Current cadastral maps and geographical information systems (GIS) are tools that are integral in checking accuracy of listings and maintaining a comprehensive data base

REAL ESTATE APPRAISAL AND SUBJECTIVITY

The discretionally and the appraisers’ subjectivity that characterize traditional real estate valuation are still allowed to take part in the formation of the asset price even when respecting international standards (EVS, IVS) or Appraisal Institution´s regulations (TEGOVA, RICS, etc.). The application of econometric and statistical methods to real estate valuation (especially on mass appraisals that comprehend a huge amount of data) aims at the elimination of subjectivity on the appraisal process. But the unanswered questions underneath this subject are the following: In what consists the subjective component on real estate appraisal value formation? How much is the value presented by the appraiser influenced by the economic environment or by the building or neighborhood social status? What are the inherent and exterior factors that concur to the enhancement of the subjective component on real estate price formation? In this study an overview across appraisal’s bibliography is made in order to determine which real estate inherent and exterior factors are more important on price formation

Residential Appraisal and the Lending Process: A Survey of Issues

This article surveys mainly academic literature for issues concerning the use of appraisals in the residential lending process. The development of appraisal methodologies is reviewed, and the strengths and weaknesses of various appraisal techniques are assessed. Issues relating to the use of neighborhood characteristics in appraisals for lending purposes are also explored. Finally, institutional incentives that give rise to biased and self-serving appraisals and possible solutions to these incentive problems are examined.

Housing Submarkets in Istanbul

This study tests the hypothesis that in a segmented housing market, housing price structure is different in each segment and whole market area price structure does not reflect a realistic housing price structure effectively. Submarket existence is tested in order to average household income in neighbourhoods in the Istanbul housing market. Whether the consequential variations in prices in each segment have large effects on the overall prices of housing is emphasized by the replication of the Schnare and Struyk (1976) process. The empirical results show that as a stratifier, average household income in neighbourhoods affects housing prices in each segment and, considering the submarkets based on average household income in neighbourhoods, is an effective for the Istanbul housing market. Implicit attribute prices vary and there is a statistically significant difference in the prices of each segment. These differences have a large effect on the overall price of housing.housing submarkets, average household income in neighbourhoods, Istanbul

The Accuracy of Long-term Real Estate Valuations

By using a unique data set of single-family house transactions, we examine the accuracy of the cost and sales comparison approach over different forecast horizons. We find that sales comparison values provide better long-term forecasts than cost values if the economic loss function is symmetric. A weighted average of both sales comparison value and cost value can reduce this loss even further. If the economic loss function is asymmetric, however, cost values might provide better long-term forecasts.prediction accuracy, mortgage underwriting, risk management

A Brief History of the Property Tax in Georgia

This report is a chronology of the development of the property tax system that currently exists in Georgia from the 1852 legislation pointing out significant changes made over the past 156 years. FRC Report 18

Prediction of Housing Location Price by a Multivariate Spatial Method: Cokriging

Cokriging is a multivariate spatial method to estimate spatial correlated variables. This method allows spatial estimations to be made and interpolated maps of house price to be created. These maps are interesting for appraisers, real estate companies, and bureaus because they provide an overview of location prices. Kriging uses one variable of interest (house price) to make estimates at unsampled locations, and cokriging uses the variable of interest and auxiliary correlated variables. In this paper, housing location price is estimated using kriging methods, isotopic data cokriging, and heterotopic data cokriging methods. The results of these methods are then compared.