<abstract xmlns="http://www.w3.org/1999/xhtml"><p>In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process (property market value prediction itself) was raised in this article. The need for the consideration of an ontologically perceived, particular element of the real estate market with its distinctive characteristics indicates the specific nature of the interpretation of the data which may be used in the appraisal process.</p><p>Therefore, a new shape of the property value model, based on LSM, was presented. It takes into account a specific description of the appraised property. Thus, the factor of dissimilarity between sold properties used in creating the value model and the appraised property was used in its coefficient matrix. The new model clearly shows the advantages and disadvantages of the dissimilarities between sold properties used in creating the coefficient matrix of the value model.</p></abstract>

In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process (property market value prediction itself) was raised in this article. The need for the consideration of an ontologically perceived, particular element of the real estate market with its distinctive characteristics indicates the specific nature of the interpretation of the data which may be used in the appraisal process.Therefore, a new shape of the property value model, based on LSM, was presented. It takes into account a specific description of the appraised property. Thus, the factor of dissimilarity between sold properties used in creating the value model and the appraised property was used in its coefficient matrix. The new model clearly shows the advantages and disadvantages of the dissimilarities between sold properties used in creating the coefficient matrix of the value model.

Dissimilarity as a Component of the Property Price Model

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Dissimilarity as a Component of the Property Price Model"}

In the course of discussion on an econometric model of property value and its place in property appraisal, the argument of the main goal of the process...

Dissimilarity as a Component of the Property Price Model

Published Online: Oct 11, 2019

Page range: 124 - 132

DOI: https://doi.org/10.2478/remav-2019-0030

Keywords
Dissimilarity, Property price model, comparables selection, property valuation

© 2019 Jacek Zyga, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Dissimilarity as a Component of the Property Price Model

Published Online: Oct 11, 2019

Page range: 124 - 132

DOI: https://doi.org/10.2478/remav-2019-0030

KeywordsDissimilarity, Property price model, comparables selection, property valuation

© 2019 Jacek Zyga, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Dissimilarity, Property price model, comparables selection, property valuation