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Showing papers in "Aestimum in 2012"


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors examined the impact of heterogeneous investors with asymmetric bargaining positions on transaction prices in private commercial real estate markets and found strong evidence that out-of-state buyers pay significantly more (8 - 11% premium) for commercial properties than instate buyers.
Abstract: We examine the impact of heterogeneous investors with asymmetric bargaining positions on transaction prices in private commercial real estate markets. Using a dataset that contains nearly 100,000 commercial real estate transactions during 1997-2009, we examine the extent to which common conditions of sale and buyer characteristics affect bargaining power and negotiated prices. We find that tax-motivated buyers seeking to complete a delayed Section 1031 exchange pay an average price premium of 12.5% when purchasing smaller properties. However, these price premiums for exchange motivated buyers are not observed among more expensive properties. We find strong evidence that out-of-state buyers pay significantly more (8 - 11% premium) for commercial properties than in-state buyers. Consistent with our expectations, we find that sellers of distressed properties negotiate significantly lower transaction prices (13 - 15% discount) than sellers of non-distressed properties, all else equal. Finally, we find evidence that REITs pay price premiums between 14 - 16% for office and industrial and retail properties. Our results strongly support the notion that relative bargaining power influences negotiated transaction prices.

14 citations


Journal ArticleDOI
01 Aug 2012-Aestimum
TL;DR: In this paper, the authors discuss the analysis of cumulative effects in strategic environmental assessment (SEA) with reference to spatial planning by providing a review of key concepts and methods related to cumulative effects literature.
Abstract: Strategic environmental Assessment (SEA) is a decision support instrument for predicting and evaluating the likely environmental effects of implementing a policy, plan or programme. SEA can consider the cumulative impacts of more than one project or activity on the same environmen- tal component. This paper discusses the analysis of cumulative effects in SEA, with reference to spatial planning by: providing a review of key concepts and methods related to cumulative effects literature; presenting a rationale for the inclusion of cumulative effects in SEA of spatial plans; advancing a proposal to address cumulative effects in different SEA stages. The paper concludes that SEA offers the opportunity to support a better management of cumulative effects arising from many local-level spatial planning decisions. Three aspects emerged as critical to ensure good practices: the selection of valued environmental components, the adoption of future-oriented approaches, and the use of spatially-explicit information.

11 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors suggest the use of Contingent Valuation Method with the aim of replace in the appraisal models the market prices of a sample of properties with the willing to pay (WTP) for the same goods.
Abstract: One of the most criticism in Real Estate appraisal processes based on sales comparison approach is the reliability of data about market prices of comparable properties. In this context, the use of evaluation methods based on hypothetical markets, most widely used in the field of the evaluation of environmental goods or cultural heritage, could solve that problem. It has been found that estimating the willing to pay (WTP) for a sample of goods with different features brings to reliable outcomes with negligible gaps by comparison with the values obtained by the more traditional real estate appraisal methods. According to these general assumptions, the paper suggests the use of Contingent Valuation Method with the aim of replace in the appraisal models the market prices of a sample of properties with the WTP for the same goods.

11 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the influence of selected variables on residential property price indices for European countries, with particular attention paid to Italy and Poland, using a rough set theory and an approach that uses a committee of artificial neural networks.
Abstract: This paper aims to determine the influence of selected variables on residential property price indices for European countries, with particular attention paid to Italy and Poland, using a rough set theory and an approach that uses a committee of artificial neural networks. Additionally, the overall analysis for each European country is presented. Quarterly time series data constituted the material for testing and empirical results. The developed models show that the economic and financial situation of European countries affects residential property markets. Residential property markets are connected, despite the fact that they are situated in different parts of Europe. The economic and financial crisis of countries has variable influence on prices of real estate. The results also suggest that methodology based on the rough set theory and a committee of artificial neural networks has the ability to learn, generalize, and converge the residential property prices index.

10 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In international and metropolitan real estate markets, it has been detected, for the first time, the growing relevance of green buildings with respect to non-green building as mentioned in this paper, also quantified through regression analysis a green premium, i.e. a differential in terms of price toward sold real estate units having ecological characteristics along with an energy value (more efficient behavior).
Abstract: In international and metropolitan real estate markets, it has been detected, for the first time, the growing relevance of green buildings with respect to non-green building. Also, it has been singled out and then quantified through regression analysis a green premium, i.e. a differential in terms of price toward sold real estate units having ecological characteristics along with an energy value (more efficient behavior). The incipient international studies recommend to extend the analysis to unexplored middle-size non-metropolitan (marginal) real estate markets. One of this areas has been studied detecting the first sale of an apartment with energy certification belonging to class B in a building with ecological characteristics. The assessment analysis performed through Market Comparison Approach, MCA, made it possible to detect and then appraise the green premium that is in line with the outcomes of the first and pioneer international studies performed in metropolitan areas.

9 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: The work proposes use of a few simple formulas in substitution of the traditional theorems, with the last objective to also standardize procedure as much as possible and also improve results’accuracy.
Abstract: In order to make easy, univocal and accurate Market Comparison Approach application, the present work’s aim is to simplify the use of price commercial theorems using numerical coefficients able to correct every single duplication, leading to reliable appraising results and simplified procedures. The work proposes use of a few simple formulas in substitution of the traditional theorems, with the last objective to also standardize procedure as much as possible and also improve results’accuracy.

8 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, the authors propose a new methodology, warranting a continuity process with some traditional economic and evaluation approach, using some new tools, such as the developed rough set by the Operations Research for other issues, but, in this case, that have an instrumental role for the identification of the capacity to increase in value of a real estate capital and to propose a fuzzy measure of this capacity.
Abstract: The valorization processes of real estate capital are strongly influenced by the ability of the different buildings to capture and incorporate some liquidity flows, this capacity, is closely related to the dynamics of the market, of its segments and the single building. The study proposes in this regard, a new methodology, warranting a continuity process with some traditional economic and evaluation approach, using some new tools, such as the developed rough set by the Operations Research for other issues, but, in this case, that have an instrumental role for the identification of the capacity to increase in value of a real estate capital and to propose a fuzzy measure of this capacity. The study case is that of the market of Ortigia, the historic center of Syracuse.

8 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: This essay describes the most relevant steps of a method for the environmental damage assessment that was edited in 1989 and that could be easily adapted to the actual context, using a scenario approach built thanks to Gis tools and procedures.
Abstract: This essay describes the most relevant steps of a method for the environmental damage assessment that was edited in 1989 and that could be easily adapted to the actual context, using a scenario approach built thanks to Gis tools and procedures. Once the scenarios have been identified, the turning point is a prospective comparison referred to the decreased capability of the environment to support the activities of its three components and to the evaluation of “value parameters”, depending on the importance given to each element, in order to identify the damage costs. At this point, the damage value could be quantified considering the actual reclamation costs and outlining the uniqueness of each area and ecosystem and the actual inability of exactly restoring the previous configuration.

7 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors connect the Real Options Theory (ROT) with the real estate investment framework and present an application of the real option approach within a backward risk-neutral valuation process.
Abstract: The primary aim of this work is to connect the Real Options Theory (ROT ) with the real estate investment framework. A great deal of theoretical work exist today; it begun with Merton (1973) and Black & Sholes (1973) and provided new insights into capital budgeting decision-making and new models, used today by corporate managers and practitioners too. Unfortunately, the ROT is not widely used by appraisers respect to the traditional DCF model, even though the developers behaviour gives evidence to the model. It is important to remember that the real estate investments are characterized by irreversible decision and by various sources of risk and uncertainty about future returns, especially when the development process is very long. The flexibility in the real estate investment is related to the alternative uses embedded in the land – traditionally interpreted through the Highest and Best Use approach – and to the characteristics of the building. In fact, the value of vacant land should reflect not only the value based on best immediate use, but also its option value , if the development is delayed and the land is converted into best alternative use in the future. This is also true for the redeveloped urban lands. In brief, this work shows the limits of the traditional analysis (Discounted Cash Flow Model) to capture flexibility in the real estate investment and presents an application – an industrial urban area – implemented by the real option approach within a backward risk-neutral valuation process.

7 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, the authors proposed a method to estimate the valuation error of complex real property and the residual part of the residual property using estimative and market ratios, and the final error is a function of the partial errors.
Abstract: 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 .

6 citations


Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, a geostatistical model is proposed to identify the incidence of position on housing asking prices, which is used to quantify the property value variability due to its location.
Abstract: In the study of variables affecting the determination of property prices, the spatial component is playing an increasingly significant role. In order to quantify the property value variability due to its location, it is necessary to resort to spatial statistics. The aim of this paper is twofold. On the one hand, we propose a geostatistical model aimed at identifying the incidence of position on housing asking prices. Starting from a geostatistical model we propose a methodology to empirically measure the incidence of a geographical segmentation on asking prices. The purpose of this paper is to test whether appraisers take account of the location in defining the asking prices, that represent the first signal of houses values. The proposed model is tested on a sample of residential properties, listed on the Turin real estate market. On the other hand, staring from the results of the model, the purpose of the present work is to formulate economic-estimative interpretations of the Turin real estate market dynamics.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: Using Italian data, on the basis of economic theoretical approach of the honeycomb cycle by Janssen, Kruijt and Needham in 1994, the authors proposes a further development in the study of the dynamics of real estate housing market in Italy.
Abstract: Using Italian data, on the basis of economic theoretical approach of the honeycomb cycle by Janssen, Kruijt and Needham in 1994, this article proposes a further development in the study of the dynamics of real estate housing market in Italy. Using the market indicators, we plot the “honeycomb cycle” graph for each region and greatest Italian cities. Regions showing similar patterns are grouped using cluster analysis method. This practical work reaches its particular goal examining the national territory in terms of development and its evolution.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors provide evidence that real estate risk management has made tremendous progress since the mid-1990s which has not found its way into appraisal practice, thereby creating a situation where appraisals by risk analysts differ greatly from appraisal by real estate appraisers.
Abstract: Real estate appraisal is usually regarded as both a science and an art: “science” because the appraiser uses mathematical calculations and other objective elements, “art” because he also uses his experience and other subjective elements. This dual character requires—among others—that new insights from other disciplines and current trends are taken into account. The central proposition of the article is that this requirement is not met. The author provides evidence that real estate risk management has made tremendous progress since the mid-1990s which has not found its way into appraisal practice, thereby creating a situation where appraisals by risk analysts differ greatly from appraisals by real estate appraisers. According to the author the gap between real estate appraisal and risk analysis should be closed from both sides. The article begins with an overview of the most important trends which will impact real estate values in the future. From these trends, an exemplary economic scenario for European real estate markets is derived in order to demonstrate that scenario writing is a powerful tool for risk management. After that the author discusses some other methods of risk management and their potential benefits for real estate appraisal.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, a model structure that contains neither explicit spatial nor temporal variables is calibrated by a method that recognizes these variations in is calibration architecture, which is conceptually similar to Geographically Weighted Regression (GWR).
Abstract: An Automated Valuation Model (AVM) that seeks to attain predictive accuracy must take into account both spatial and temporal effects in the real estate market. A model structure that contains neither explicit spatial nor temporal variables is calibrated by a method that recognizes these variations in is calibration architecture. The method is conceptually similar to Geographically Weighted Regression (GWR) except that it extends into the temporal domain. The methodology is explained and results provided illustrating spatio-temporal variations in value.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the most relevant steps of the urban system analysis procedure and of the isovalue maps compilation for the main urban functions, to prove the urgency of using these methods to reply to the increasing need for equity and liberalism that recently came out from the urban planning process in Italy, especially, after the acknowledgement of some "new" mechanisms in most of the regional legal orders: the so called "equity tools".
Abstract: This essay describes the most relevant steps of the urban system analysis procedure and of the isovalue maps compilation for the main urban functions, to prove the urgency of using these methods to reply to the increasing need for equity and liberalism that recently came out from the urban planning process in Italy, especially, after the acknowledgement of some “new” mechanisms in most of the regional legal orders: the so called “equity tools”. The regressive models results in the experimentation have shown that the isovalue maps could be a significant tool for several meanings in the public decision process, as it is a noteworthy estimation and evaluation method, that should be largely implemented and constantly reviewed and improved.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, the authors propose a solution to rationalize the process of estimation of undivided shares, given that these shares are more difficult to sell and, consequently, there is a decrease of their market value.
Abstract: The estimate of undivided and indivisible real estate shares, in relation to different building types represents, in practice application, a recurring underestimated by the professional appraisers. This problem requires finding a logical solution that can to rationalize the process the process of estimation of undivided shares, given that these shares are more difficult to sell and, consequently, there is a decrease of their market value. It follows that in this estimative case the problem can be lead, both in theoretical and practical terms, to assessment of specific real estate investment’s risk and how to convert the measure of risk into an expected return that can compensate it. In this framework, the proposed contribution aims to implement the Capital Asset Pricing Model with Penalized Spline Semiparametric Method in order to obtain an estimation algorithm that allows to rationalize the approach to the problem of estimation of undivided real estate shares using data easy to find.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the cultural foundations and theoretical-methodological principles are used to assess Landscape Projects, and the value of a Landscape Project may be ascertained also through a multidimensional approach, based on the analysis of different project attributes whose outcome is calculated in non-monetary terms.
Abstract: Landscape is a crucial component of the world heritage. Landscape projects play a vital role in the development of sustainable scenarios. The assessment of a project plays a dual role: it is a procedure to pass judgements on both “values” and “choices”. From a strictly economic perspective, the community’s appreciation of Landscape Projects may be ascertained through its “total economic value”. The value of a Landscape Project may be ascertained also through a multidimensional approach, based on the analysis of different project attributes whose outcome is calculated in non-monetary terms. This paper illustrates the cultural foundations and theoretical-methodological principles to assess Landscape Projects.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, an experimental model applicable, in the planning stage, to an appraisal of the capital gains in a residential requalification in public/private partnership is presented. But the model does not consider the influence of qualitative exogenous variables to the market value of the property.
Abstract: The proposed article aims to illustrate an experimental model applicable, in the planning stage, to an appraisal of the capital gains in a residential requalification in public/ private partnership. The model develops a method using a conventional cost value through a multicriteria model which evaluates the influence of qualitative exogenous variables to the market value of the property. The aim is to develop a synthetic procedure, transparent, shared and easy to use by the public authorities, in determining the total benefits associated with urban transformations, in order to achieve a fair sharing of profits between public and private entities.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: Empirical application compares a location blind model with two Location Value Response Surface models (O Connor, 1982), the former based on the detection of value influence centers the latter based on error surface modelling.
Abstract: Mass Appraisal is the valuation of large quantity of properties. This automatic valuation procedure gave the opportunity to reach a single point estimate (The Appraisal of Real Estate, 13th Edition). The work test different location sensitive methodologies on a sample of 600 residential properties in the city of Minsk in Belarus. This is the first application of mass appraisal modelling in Belarus. Empirical application compares a location blind model with two Location Value Response Surface models (O Connor, 1982), the former based on the detection of value influence centers the latter based on error surface modelling.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: The contribution highlights the need for the connection between urban transformation assessment and real estate assessment, noting that there is a mutual influence (now rarely seen) between the parameters involved and GIS serves as a tool by which to achieve this liaison.
Abstract: The contribution highlights the need for the connection between urban transformation assessment and real estate assessment, noting that there is a mutual influence (now rarely seen) between the parameters involved. For this purpose GIS serves as a tool by which to achieve this liaison. The list of applications for real estate conducted through the use of GIS, its strengths and weaknesses and fields in which applications are still pioneers, argues in favor of the hypothesis outlined and give to the assessor a key role in its implementation.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors test the regressed discounted cash flow analysis (DCF) as a model of valuation and derive risk premium in a specific urban context starting from a small sample of DCF used to appraise commercial property in the same urban context.
Abstract: Discounted Cash Flow Analysis is a method used for real estate valuation and valuation of worth. The application of DCF requires the selection of an appropriate discount rate. Discount rate estimation is based on the sum between a risk free and a risk premium. A different approach is the selection of an IRR of comparable projects. The work tests the regressed DCF as a model of valuation. The method is based on regressed DCF recently proposed (D’Amato and Kauko, 2011) relies on deriving risk premium in a specific urban context starting from a small sample of DCF used to appraise commercial property in the same urban context. Therefore it will be used regressed DCF as discount rate and risk premium estimation. The area interested by the empirical application is near Bucharest.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors focus on the Real Estate Price Model of the UrbanSim framework, which is calibrated using a nine-year back-casting period, and demonstrate that the calibrated residential real estate price model from the Urban Sim application in Lyon is sensitive to changes in accessibility and provides good predictive capacity in the city centre, but underestimates prices in other areas.
Abstract: Housing prices in the Lyon Urban Area are simulated with the land use framework UrbanSim interacting with transportation model. We focus on the Real Estate Price Model of the UrbanSim framework. This OLS regression model of housing prices is calibrated using a nine-year back-casting period. The calibrated model, applied in simulation, provides price dynamics similar to actual one in the centre of Lyon. Sensitivity analysis demonstrates the model’s ability to capture changes in employment accessibility on price dynamics. We conclude that the calibrated residential Real Estate Price Model from the UrbanSim application in Lyon is sensitive to changes in accessibility and provides good predictive capacity in the city centre, but underestimates prices in other areas.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, the authors present an outline of the real estate market of Ortigia showing some characters of the capital goods, whose value can be figured out by crossing the theory of capital and the income method.
Abstract: The real estate market is a highly communicative human and social place in which individual creativity interacts with the urban structure. The rising tendency of the property value and quality stimulates global investors to demand more and more qualified assets. This process involves the public administration, whose policies should focus on the acquisition, for the community’s benefit, of a significant part of the surplus of the real estate investments. The appraisal point of view, and particularly the income method, focuses on the capability of the cap rate to represent and integrate the private possibilities with the public perspectives. The outline of the real estate market of Ortigia shows some characters of the capital goods, whose value can be figured out by crossing the theory of the capital and the income method.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, a new system for calculating compensation for expropriation is proposed, one that would incorporate the quid of the land productivity factor within the business initiative "infra-structure for public use".
Abstract: The alterations caused by the realization of large scale, linear infra-structure have repercussions that similarly disrupt the land market. The market is still not perfect and has all the inherent problems connected to estimation of the compensation due for expropriation. In general, the latter doesn’t compensate the expropriated party sufficiently for the impact that the construction of a new infra-structure can have on the land in question. The result is that the expropriated party not only loses possession of their own estate, but also receives nothing in recognition of its plus/minus value compared to the non-expropriated party. The effect on the land market created by the expropriation procedure itself is not factored into the estimated compensation. Another question is the standardization of the method used to determine the additional compensation due, calculated by means of the Vam, which does not make provisions for the instance of a farming company headed by an entrepreneur with above-average business skill, nor does it consider the agricultural and pedoclimatic quality. Lastly, the drafting of a new system for calculating compensation for expropriation is deemed as necessary, one that would incorporate the quid of the land productivity factor within the business initiative “infra-structure for public use”.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this paper, a deep analysis of Milanese real estate market, based on data supplied by three real estate organizations, is proposed, where the results of surveys has been employed in a simulation by multi-agent system model, to foresee long term evolution of the phenomenon.
Abstract: This research propose a deep analysis of Milanese real estate market, based on data supplied by three real estate organizations; gentrification appears in some neighborhoods, such as Tortona, Porta Genova, Bovisa, Isola Garibaldi: the latest is the subject of the final analysis, by surveying of physical and social state of the area. The survey takes place in two periods (2003 and 2009) to compare the evolution of gentrification. The results of surveys has been employed in a simulation by multi-agent system model, to foresee long term evolution of the phenomenon. These neighborhood micro-indicators allow to put in evidence actual trends, conditioning a local real estate market, which can translate themselves in phenomena such as gentrification. In present analysis, the employ of cellular automata models applied to a neighborhood in Milan (Isola Garibaldi) produced the dynamic simulation of gentrification trend during a very long time: the cyclical phenomenon (one loop holds a period of twenty – thirty years) appears sometimes during a theoretical time of 100 – 120 – 150 years. Simulation of long period scenarios by multi-agent systems and cellular automata provides estimator with powerful tool, without limits in implementing it, able to support him in appraisal judge. It stands also to reason that such a tool can sustain urban planning and related evaluation processes.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors focused upon what stakeholders of valuations within a country might expect from the International Valuation Standards IVS when it will be introduced and how to deal with introduction, awareness, lobbying and education of the IVS in a country.
Abstract: The worldwide trend towards globalization of Businesses has pushed the need for International Standards in every sector of business. For the Appraisal and Valuation profession it has lead to the introduction of International Valuation Standards IVS. The paper is focused upon what stakeholders of valuations within a country might expect from the IVS when it will be introduced. It starts off with an overview of the work of the IVSC, followed by an explanation about the way in which the implementation process in the Netherlands is taking place. Aspects about how to deal with introduction, awareness, lobbying and education of the IVS in a country will be given. The paper will end with conclusions and recommendations for other countries who wish to implement the IVS.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors present a critical literature review together with expert interviews on the methodology of spatial benefit-cost analysis in relation to design of housing and hazard management mechanisms within the context of urban land use in contemporary Trondheim, Norway.
Abstract: The issue of interest is as to whether it is possible to use the added value generated by the positive effect of having housing developments close to water to abate the negative effects that may arise in some of the same locations. This paper is based on a critical literature review together with expert interviews. It comments on the methodology of spatial benefit-cost analysis (benefit for price premium ‘generated’ by the amenity; costs for price discounts ‘generated’ by the risk) in relation to design of housing and hazard management mechanisms within the context of urban land use in contemporary Trondheim, Norway. The particular issue at stake concerns potential quick clay landslide hazard areas. Prior research suggests that the role of situation by a coast, lake or river should not be overlooked when assessing possibilities for financing general water related hazard abatement schemes. This is potentially a win-win-situation: safety enhancing public works could be financed based on the added value of new developments at the given location. The purported kind of innovative financial mechanism however requires close cooperation between private developers and local authorities – in other words, governance instead of government – as well as flexible legal codes. Unfortunately the study area to a great extent lacks such institutional possibilities due to an outmoded conceptualization of the role of government intervention.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: The basic sketch of the evaluation process is summarized and it is pointed out its relationship with the institutional dimensions and three proposition are drawn from this framework.
Abstract: The paper aims at investigating some aspects of the evalutation process under the perspective of the problem solving approach. Firstly, the basic sketch of the evaluation process is summarized and it is pointed out its relationship with the institutional dimensions (Vat, 2009, 2004). Then the characteristics of the evaluation process as a problem-solving activity are presented and discussed in terms of identification of problem domain and problem types. Three proposition are then drawn from this framework a discussed. Preliminary conclusions are proposed.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors look at how real estate appraisal practitioners and related professionals may benefit from a greater recourse to statistics and, more precisely, to econometric modelling, in their search for market value.
Abstract: The 2007-2008 subprime mortgage crisis has profoundly modified the way investment and management risks are perceived by economic agents. In particular, both private and institutional players in the property sector are now being compelled to follow more stringent rules and to display greater transparency in their management of risk issues and of lending practices. In that context, analytical tools based on statistics and econometric modelling are increasingly resorted to as risk-containment devices. The purpose of the paper is to look at how real estate appraisal practitioners and related professionals may benefit from a greater recourse to statistics and, more precisely, to econometric modelling, in their search for market value. As brought out in the real estate literature, the very definition of market value lends itself to a statistical approach, the latter reaching its full meaning with the hedonic price (HP) method which is shown to be an extension of the traditional sales comparison approach.

Journal ArticleDOI
01 Jan 2012-Aestimum
TL;DR: In this article, the authors propose to census the sources of available real estate data and develop an operational scheme for the punctual collection of the data and for the realization of a data bank with particular reference to one defined real estate reality.
Abstract: In the real estate appraisal, the principal problem consists in the availability of the prices and the rents bargained, on which to found the forecasts of the prices and the future rents and the appraisal of market value. For the valuation standards, the reference to the real estate market is fundamental in the process of appraisal: to make truthful appraisals doesn’t exist other way that the collection of the true prices whereas they are formed. The study proposes to census the sources of available real estate data and to develop an operational scheme for the punctual collection of the data and for the realization of a data bank with particular reference to one defined real estate reality. To purpose of the study, for a zone of the city was calculated on a vacancy rate on a sample of urban estate placed in the Municipality of Prato.