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The Review of Real Estate Appraisals Using Multiple Regression Analysis

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Abstract

A technique is presented that enables review appraisers to test the work of other appraisers. The technique is based upon the simple assumption that the covariance between the adjusted selling price of comparable properties and the property characteristics for which adjustments are properly made is near zero for a given subject property. In a test of the underlying theory of the technique using pooled appraisal reports, the theory is supported. Also, another set of appraisals is pooled to demonstrate how the technique can identify the presence of improper adjustments. Finally, applications and limitations of the technique are discussed.

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  • Hans R. Isakson, 1998. "The Review of Real Estate Appraisals Using Multiple Regression Analysis," Journal of Real Estate Research, American Real Estate Society, vol. 15(2), pages 177-190.
    • Handle: RePEc:jre:issued:v:15:n:2:1998:p:177-190
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    1. Peter F. Colwell & Roger E. Cannaday & Chunchi Wu, 1983. "The Analytical Foundations of Adjustment Grid Methods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 11(1), pages 11-29, March.
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    Cited by:

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    2. Mirosław Bełej & Radosław Cellmer & Michał Głuszak, 2020. "The Impact of Airport Proximity on Single-Family House Prices—Evidence from Poland," Sustainability, MDPI, vol. 12(19), pages 1-26, September.
    3. Konowalczuk Jan, 2017. "The Problem of Reflecting the Market in the Legal Principles of Real Estate Valuation in Poland. How to Eliminate the “Legal Footprint”?," Real Estate Management and Valuation, Sciendo, vol. 25(2), pages 44-57, June.
    4. Doszyń Mariusz, 2020. "Econometric Support of a Mass Valuation Process," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 81-94, June.
    5. Doszyń Mariusz, 2019. "Individual Capacities of Hellwig’s Information Carriers and the Impact of Attributes in the Szczecin Algorithm of Real Estate Mass Appraisal," Real Estate Management and Valuation, Sciendo, vol. 27(1), pages 15-24, March.
    6. Śpiewak Beata, 2018. "Application of Chosen Methods of Robust Estimation: Baarda’s and Huber’s in Search for Outliers in the Real Estate Market Modeling," Folia Oeconomica Stetinensia, Sciendo, vol. 18(1), pages 27-38, June.
    7. Gnat Sebastian, 2020. "Impact of the Regularization of Regression Models on the Results of the Mass Valuation of Real Estate," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 163-176, June.
    8. Kobylińska Katarzyna, 2021. "The Application of Spatial Autoregressive Models for Analyzing the Influence of Spatial Factors on Real Estate Prices and Values," Real Estate Management and Valuation, Sciendo, vol. 29(4), pages 23-35, December.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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