Residuals analysis for constructing 'more real' property value

Abstract

The price of a real estate is based on its value. The real estate market, where the real estate price is established, is dynamic and undergoes continuous change. Considering the fact that nothing is fully deterministic or fully stochastic in nature, the author has put forward a compromise based on the conducted analyses in order to better diagnose the \u93live spatial structures\u94. The considerations presented in this paper provide grounds for the claim that integration of geo-deterministic inference (represented by the geostatistical model) and geo-stochastic inference (represented by maps of residuals), linked to space valuation, makes it possible to dynamically diagnose and characterise spatial phenomena and to make rational forecasts (and, consequently, planning) of changing in space and, therein, on the real estate market