One of the basic problems in the comparison-based property valuation process is to determine the influence of property attributes on their price differential. Due to the qualitative character of the majority of property attributes as well as to the distributions of both prices and attributes, their effect on the price differential is increasingly often assessed by means of non-parametric statistical methods. As a tool for determining the effect of attributes on prices, many authors propose parametric methods, in particular multiple regression models. The study presents a comparison of the results of property market attribute weight estimation obtained by means of the Spearman rank correlation coefficient with the ceteris paribus adjustment and the multiple regression model based on a set of transactions with built-up land property. In both of the analyzed methods, qualitative variables were modeled with the use of the Osgood semantic differential scale. The results of the analysis show the equivalence of the applied methods. Property attribute weights calculated using the method based on the rank correlation coefficient with the ceteris paribus adjustment and the multiple regression model, both with the same level of relevance, showed almost identical values. This indicates that both parametric and non-parametric methods can be used to estimate weights.
Issues related to the relationship between prices and values of goods have occupied the minds of economists since the beginnings of economic thought. These considerations concern both general issues and the direct, practical dimension of values. For the real estate market, the main value category considered and used is market value. Its concept has been defined at different levels of legislation, but regardless of how detailed the content of the definitions, they all refer to price as the main basis for reasoning. On the other hand, a part of the economic trends call into question the possibility of measuring values directly on the basis of prices. Consequently, in the light of existing divergences in interpretation, can prices be a good yardstick for value, particularly in the light of the evolving concepts of Highest and Best Use (HaBU) and Hope Value? In an attempt to answer the question, the paper presents considerations on the relationship between prices and value on the real estate market, in particular in the context of the significance of this relationship for the determination of market value. Theoretical studies were supported by empirical research, which allowed for disproving the research hypothesis concerning the relations between the analyzed economic values.
The paper presents an analysis of the trade in undeveloped real property in two cases: the ownership title and perpetual usufruct. The aim was to find the relation between the values of these rights in parallel markets, which allows to evaluate a better type of right to the property with a worse one. Such a solution is justified when the data is lacking in the local market. The solution is also frequently encountered in the practice of a property appraiser (Dobek, Suchoń, Wajszczuk, Wielicki, 2009). In the empirical study, the information used concerned the transactions concluded between the years of 2013‒2015 in two surveying precincts in Bydgoszcz district. In both cases, two different rights to property were traded, however, their percentage share in the total number of transactions was significantly different. It enabled to determine a correction factor for both types of rights to property. The analyses were preceded by the examination of concluded agreements, in particular, the characteristics of the traded real properties.
The variables used in statistical research can be measured on different scales. According to Stevens the most common division of measurement scales distinguish four main types: nominal, ordinal, interval and ratio. The chosen scale of measurement implies further the possibility of applying certain statistical methods. For socio-economic research it is frequent that among independent variables appear variables of a qualitative nature. This study presents the idea of the application of the Likert and Osgood scales for the evaluation and quantification of qualitative variables in the real estate valuation process.
Taking into account the fact that the property features used in the process of estimating its value are very often measured on weak scales, this research attempted to apply the aforementioned scales to measure the qualitative features of real estate property. Additionally, all the qualitative data can be expressed only on nominal or ordinal scales. This means that they cannot be uncritically treated as metrical variables and their measurement scale implies the possible application of mathematical operations and statistical instruments. On the other hand, by analysing the type and the character of the qualitative features of the property, we can observe a substantial connection of such features with the assessment of their level of intensity expressed as a semantic interval or the acceptance level of a given phenomenon. This paper attempts to show how to apply the scales developed to measure attitudes in order to quantify the qualitative features of real estate property in the valuation process and shows the interval character of the data measured by the Osgood scale through comparison among three correlations specific for the mentioned type of scale.