Skip to main content
SpringerLink
Log in

Automated Procedures Based on Market Comparison Approach in Italy

  • Chapter
  • First Online:
Advances in Automated Valuation Modeling

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 86))

Abstract

The question about objective valuation is linked on the one hand to the identification of a large number of reliable sale data, on the other hand to the ability to control the critical evaluation protocol. Automating the valuation process, ensured by computerization of real estate data properly detected, provides a concrete answer to the problem of objectivity, allowing a significant control of the subjective component which characterizes the more traditional appraisals. Automatic methods traditionally proposed at international level are often set on multiple regression models, designed to build prediction functions that are valid throughout the study area, calibrating the coefficients on the basis of the real estate data contained on the supporting database. In accordance with the International Valuation Standards, this paper proposes a different approach to automated appraising that, far from the idea of defining appraisal equations generally valid on the basis of regression models, proposes the implementation of an automatic procedure based on the Market Comparison Approach, with the aim to define equations related to the peculiarities of a marketplace in a very circumscribed area. The proposed method has been implemented through the Model Builder tool of ArcGIS and has been tested on a pilot GIS for residential real estate properties.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Borst, R., & McCluskey, W. (2008). The modified comparable sales method as the basis for a property tax valuations system and its relationship and comparison to spatially autoregressive valuation models. In T. Kauko, & M. d’Amato (Eds.), Mass appraisal methods: An international perspective for property valuers (pp. 49–69). Chicester, UK: Wiley Blackwell.

    Google Scholar 

  • Borst, R. A., Des Rosiers, F., Renigier, M., Kauko, T., & d’Amato, M. (2008). Technical comparison of the methods including formal testing accuracy and other modelling performance using own data sets and multiple regression analysis. In T. Kauko, & M. d’Amato (Eds.), Mass appraisal an international perspective for property valuers. Wiley Blackwell.

    Google Scholar 

  • Bourassa, S., Cantoni, E., & Hoesli, M. (2007). Spatial dependence, housing submarkets, and house price predictions. Journal of Real Estate Finance and Economics, 35, 143–160.

    Article  Google Scholar 

  • Bourassa, S., Cantoni, E., & Hoesli, M. (2010). Predicting house prices with spatial dependence: A comparison of alternative methods. Journal of Real Estate Research, 32, 139–159.

    Google Scholar 

  • Bourassa, S., Cantoni, E., & Hoesli, M. (2013). Robust repeat sales indexes. Real Estate Economics, 41(3), 517–541.

    Article  Google Scholar 

  • Case, B., Clapp, J., Dubin, R., & Rodriguez, M. (2004). Modeling spatial and temporal house price patterns: A comparison of four models. Journal of Real Estate Finance and Economics, 29, 167–191.

    Article  Google Scholar 

  • Ciuna, M., & Simonotti, M. (2014). Real estate surfaces appraisal. AESTIMUM, 64, 1–13 (Giugno).

    Google Scholar 

  • Ciuna, M., Salvo, F., & Simonotti, M. (2014a). The expertise in the real estate appraisal in Italy. In Proceedings of the 5th European Conference of Civil Engineering (ECCIE ‘14). Mathematics and Computers in Science and Engineering Series (pp. 120–129), North Atlantic University Union. ISSN:2227-4588, Firenze, 22/24 November 2014.

    Google Scholar 

  • Ciuna, M., Salvo, F., & De Ruggiero, M. (2014b). Property prices index numbers and derived indices. Property Management, 32 (2), 139–153. DOI(Permanent URL):10.1108/PM-03-2013-0021

  • Ciuna, M., Salvo, F., & Simonotti, M. (2014c). Multilevel methodology approach for the construction of real estate monthly index numbers. Journal of Real Estate Literature: 2014, 22(2), 281–302.

    Google Scholar 

  • Colwell, P. F., Cannaday, R. E., & Wu, C. (1983). The analytical foundations of adjustment grid methods. Journal of the American Real Estate and Urban Economics Association, 11(1), 11–29.

    Article  Google Scholar 

  • d’Amato M. (2004). A Comparison Between RST and MRA for Mass Appraisal Purposes. A Case in Bari, International Journal of Strategic Property Management, Vol.8, pp. 205–217.

    Google Scholar 

  • d’Amato, M. (2008). Rough set theory as property valuation methodology: The whole story. In T. Kauko, & M. d’Amato (Eds.), Mass appraisal an international perspective for property valuers (Chap. 11, pp. 220–258). Wiley Blackwell .

    Google Scholar 

  • d’Amato, M. (2010). A location value response surface model for mass appraising: An “iterative” location adjustment factor in Bari, Italy. International Journal of Strategic Property Management, 14, 231–244.

    Google Scholar 

  • d’Amato, M. (2015). Income approach and property market cycle. International Journal of Strategic Property Management, 29(3), 207–219.

    Google Scholar 

  • d’Amato, M. (2015a). Stima del valore di trasformazione utilizzando la funzione di stima. Il MCA a tabella dei dati ridotta, Territorio Italia, pp. 1–12.

    Google Scholar 

  • d’Amato, M. (2015b). MCA a Tabella dei Dati Ridotta e Sistema Integrativo di Stima. Un Secondo Caso a Bari, Territorio Italia, pp. 49–60.

    Google Scholar 

  • d’Amato, M., & Kauko, T. (2008). Property market classification and mass appraisal methodology. In T. Kauko, & M. d’Amato (Eds.), Mass appraisal an international perspective for property valuers (Chap. 13, pp. 280–303). Wiley Blackwell.

    Google Scholar 

  • d’Amato, M., & Kauko, T. (2012). Sustainability and risk premium estimation in property valuation and assessment of worth. Building Research and Information, 40(2), 174–185 (March–April 2012).

    Google Scholar 

  • d’Amato, M., & Siniak, N. (2008). Using fuzzy numbers in mass appraisal: The case of belorussian property market. In T. Kauko, & M. d’Amato (Eds.), Mass appraisal an international perspective for property valuers (Chap. 5, pp. 91–107). Wiley Blackwell.

    Google Scholar 

  • Detweiler, J., & R. Radigan. (1996). Computer-assisted real estate appraisal. Appraisal Journal, January, 91–101.

    Google Scholar 

  • Detweiler, J., & Radigan, R. (1999). Computer-assisted real estate appraisal: A tool for the practicing appraiser. Appraisal Journal, July, 280–286.

    Google Scholar 

  • Dilmore, G. (1974). Appraising houses. Real Estate Appraiser July–August: 21–32.

    Google Scholar 

  • Dubin, R. (1998). Estimation of regression coefficients in the presence of spatially autocorrelated error terms. Review of Economics and Statistics, 70(3), 466–474.

    Article  Google Scholar 

  • Fik, T., Ling, D., & Mulligan, G. (2003). Modeling spatial variation in housing prices: A variable interaction approach. Real Estate Economics, 31(4), 623–646.

    Article  Google Scholar 

  • Gau, G. W., Lai, T.-Y., & Wang, K. (1992). Optimal comparable selection and weighting in real property valuation: An extension. Journal of the American Real Estate and Urban Economics Association, 20(1), 107–124.

    Article  Google Scholar 

  • Gau, G. W., Lai, T.-Y., & Wang, K. (1994). A further discussion of optimal comparable selection and weighting, and a response to green. Journal of the American Real Estate and Urban EconomicsAssociation, 22(4), 655–663.

    Article  Google Scholar 

  • Goodman, A., & Thibodeau, T. (1998). Housing market segmentation. Journal of Housing Economics, 7, 121–143.

    Article  Google Scholar 

  • Goodman, A., & Thibodeau, T. (2003). Housing market segmentation and hedonic prediction accuracy. Journal of Housing Economics, 12(3), 181–201.

    Article  Google Scholar 

  • Goodman, A., & Thibodeau, T. (2007). The spatial proximity of metropolitan area housing submarkets. Real Estate Economics, 35, 209–232.

    Article  Google Scholar 

  • Graaskamp, J., & Robbins, M. (1987). Business 868 lecture notes. University of Wisconsin–Madison.

    Google Scholar 

  • Isakson, H. R. (1986). The nearest neighbors appraisal technique: An alternative to the adjustment grid methods. Journal of the American Real Estate and Urban Economics Association, 14(2), 274–286.

    Article  Google Scholar 

  • Isakson, H. R. (1988). Valuation analysis of commercial real estate using the nearest neighbors appraisal technique. Growth and Change, 19(2), 11–24.

    Article  Google Scholar 

  • Kauko, T., & d’Amato, M. (2011). Neighbourhood effect, international encyclopedia of housing and home. Elsevier Publisher.

    Google Scholar 

  • Manaster, M. S. (1988). Sales comparison approach: A comparative analysis of three appraisal technique. Growth and Change, 19(2), 11–24.

    Article  Google Scholar 

  • Manaster, M. S. (1991). Sales comparison approach: A comparative analysis of three appraisal reports on the same property. The Real Estate Appraiser, May, 12–26.

    Google Scholar 

  • O’Connor, P. (2008). Automated valuation models by model-building practitioners: Testing hybrid model structure and GIS location adjustments. Journal of Property Tax Assessment and Administration, 5(2), 5–24.

    Google Scholar 

  • Pace, R., & Gilley, O. (1997). Using the spatial configuration of data to improve estimation. Journal of Real Estate Finance and Economics, 14, 333–340.

    Article  Google Scholar 

  • Pace, R., & Gilley, O. (1998). Generalizing the OLS and grid estimators. Real Estate Economics, 1, 331–346.

    Article  Google Scholar 

  • Renigier-Biłozor, M., Dawidowicz, A., & Radzewicz, A. (2014a). An algorithm for the purposes of determining the real estate markets efficiency in land administration system. Public Survey Review, 46(336), 189–204.

    Article  Google Scholar 

  • Renigier-Biłozor, M., Wiśniewski, R., Biłozor, A., & Kaklauskas, A. (2014b). Rating methodology for real estate markets—Poland case study. Pub. International Journal of Strategic Property Management, 18(2), 198–212. ISNN:1648-715X.

    Google Scholar 

  • Salvo, F., & De Ruggiero, M. (2011). Misure di similarità negli Adjustment Grid Methods. AESTIMUM, 58, 47–58. ISSN:1592-6117.

    Google Scholar 

  • Salvo, F., & De Ruggiero, M. (2013). Market comparison approach between tradition and innovation. A simplifying approach. AESTIMUM, 62, 585–594. ISSN:1592-6117.

    Google Scholar 

  • Salvo, F., Ciuna, M., & d’Amato, M. (2013). The appraisal smoothing in the real estate idices. In (a cura di): Maria Crescimanno, Leonardo Casini and Antonino Galati, Dynamisc of land values agricultural policies (pp. 99–111), Bologna: Medimond Monduzzi Editore International Proceeding Division. ISBN:978-88-7587-690-6, Palermo, 22–23/11/2012.

    Google Scholar 

  • Salvo, F., Simonotti, M., Ciuna, M., & De Ruggiero, M. (in print). Measurements of rationality for a scientific approach to the Market Oriented Methods. Journal of Real Estate Literature. ISSN:0927–7544.

    Google Scholar 

  • Simonotti, M. (2006). Metodi di stima immobiliare (pp. 177–246). Palermo: Dario Flaccovio Editore.

    Google Scholar 

  • Vandell, K. D. (1991). Optimal comparable selection and weighting in real property valuation. Journal of the American Real Estate and Urban Economics Association, 19(2), 213–239.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Palermo, Palermo, Italy

    Marina Ciuna & Marco Simonotti

  2. University of Calabria, Rende, Italy

    Manuela De Ruggiero & Francesca Salvo

Authors
  1. Marina Ciuna
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Manuela De Ruggiero
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Francesca Salvo
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Marco Simonotti
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Marco Simonotti .

Editor information

Editors and Affiliations

  1. Property Valuation & Investment DICATECh, Technical University Politecnico di Bari, Bari, Italy

    Maurizio d'Amato

  2. School of the Built Environment, Oxford Brookes University, Headington, Oxfordshire, United Kingdom

    Tom Kauko

Rights and permissions

Reprints and permissions

Copyright information

© 2017 Springer International Publishing AG

About this chapter

Cite this chapter

Ciuna, M., De Ruggiero, M., Salvo, F., Simonotti, M. (2017). Automated Procedures Based on Market Comparison Approach in Italy. In: d'Amato, M., Kauko, T. (eds) Advances in Automated Valuation Modeling. Studies in Systems, Decision and Control, vol 86. Springer, Cham. https://doi.org/10.1007/978-3-319-49746-4_21

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-49746-4_21

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-49744-0

  • Online ISBN: 978-3-319-49746-4

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation