Supporting property valuation with automatic reconciliation

Maurizio d’Amato (Property Valuation and Investment, DICATECh, Technical University Politecnico di Bari, Bari, Italy)

Journal of European Real Estate Research

ISSN: 1753-9269

Publication date: 8 May 2018

Abstract

Purpose

Valuation is a professional activity based on international and local standards. In the valuation process more than one method can be modified. In this case, a final reconciliation of different opinions of value may be required. It is a matter of fact that the final result of these different valuation methods may vary. Therefore, in the final part of the valuation process, the valuer is required to assign a weight to the different methodologies to reach an appropriate opinion of value. This process is essentially based on valuer’s expertise. This paper aims to propose an automatic procedure of calculating the weights to assist the valuer in the valuation process.

Design/methodology/approach

The work provides methodologies to assign the weights through simple mathematical procedures that can be used to support subjective judgement in the valuation process. The models proposed can be applied to other phases of reconciliation inside the valuation process and are based on the collection of previous property data in the same market segment.

Findings

Two different methodologies are proposed to support valuers in the valuation process and in particular in the phase of the choice of the weights for final reconciliation purposes.

Research limitations/implications

The implication is the development of an information system to support the appraiser in providing these weights. The models proposed are only two but represent a future, much larger field of research.

Practical implications

The models may help in determining more consistent valuation reports.

Social implications

Consistent valuation reports for the determination of mortgage lending value may contribute to the stability of the social and economic system, especially after the 2008 non-agency mortgage crisis.

Originality/value

These are original models proposed in literature for such kind of problems.

Keywords

Citation

Maurizio d’Amato (2018) "Supporting property valuation with automatic reconciliation", Journal of European Real Estate Research, Vol. 11 No. 1, pp. 125-138

Download as .RIS

DOI

: https://doi.org/10.1108/JERER-01-2017-0005

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.