IDEAS home Printed from https://ideas.repec.org/a/vrs/remava/v27y2019i3p42-58n4.html
   My bibliography  Save this article

The Problem of Designating Elementary Terrains for the Purpose of Szczecin Algorithm of Real Estate Mass Appraisal

Author

Listed:
  • Hozer Józef

    (Institute of Econometrics and Statistics, University of Szczecin)

  • Gnat Sebastian

    (Institute of Econometrics and Statistics, University of Szczecin)

  • Kokot Sebastian

    (Institute of Econometrics and Statistics, University of Szczecin)

  • Kuźmiński Wojciech

    (Institute of Econometrics and Statistics, University of Szczecin)

Abstract

One of the key determinants of the quality of real estate mass appraisal is the algorithm used for conducting such an appraisal. Other determinants include detailed methodological and substantive solutions within the scope of a selected, applied algorithm. This article is dedicated to one of the major stages of the process of land real estate mass appraisal with the use of the Szczecin Algorithm of Real Estate Mass Appraisal (SAREMA), namely defining and determining the so-called elementary terrains. The paper aims to present the methods for designating the boundaries of elementary terrains, the manner of defining their number and size and, consequently, the number of real properties that will be covered by an automated process of mass appraisal in a given area.Ways of defining the boundaries of elementary terrains were proposed in the paper based on the existing surveying districts, zoning plans, background maps, thematic map layers, real estate market analyses as well as statistical methods.Elementary terrain boundaries thus designated were verified with the use of actual real estate resources of the city of Szczecin.

Suggested Citation

  • Hozer Józef & Gnat Sebastian & Kokot Sebastian & Kuźmiński Wojciech, 2019. "The Problem of Designating Elementary Terrains for the Purpose of Szczecin Algorithm of Real Estate Mass Appraisal," Real Estate Management and Valuation, Sciendo, vol. 27(3), pages 42-58, September.
    • Handle: RePEc:vrs:remava:v:27:y:2019:i:3:p:42-58:n:4
    DOI: 10.2478/remav-2019-0024
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/remav-2019-0024
    Download Restriction: no
    File URL: https://libkey.io/10.2478/remav-2019-0024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alasdair Rae, 2015. "Online Housing Search and the Geography of Submarkets," Housing Studies, Taylor & Francis Journals, vol. 30(3), pages 453-472, June.
    2. Konstantinos Tzioumis, 2017. "Appraisers and Valuation Bias: An Empirical Analysis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(3), pages 679-712, July.
    3. Arthur Korteweg & Morten Sorensen, 2016. "Estimating Loan-to-Value Distributions," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(1), pages 41-86, February.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Gwilym Pryce, 2013. "Housing Submarkets and the Lattice of Substitution," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2682-2699, October.
    6. Bourassa, Steven C. & Hamelink, Foort & Hoesli, Martin & MacGregor, Bryan D., 1999. "Defining Housing Submarkets," Journal of Housing Economics, Elsevier, vol. 8(2), pages 160-183, June.
    7. Shuang Zhu & R. Pace, 2012. "Distressed Properties: Valuation Bias and Accuracy," The Journal of Real Estate Finance and Economics, Springer, vol. 44(1), pages 153-166, January.
    8. Liang Peng & Thomas Thibodeau, 2013. "Risk Segmentation of American Homes: Evidence from Denver," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(3), pages 569-599, September.
    9. Cho, Man & Megbolugbe, Isaac F, 1996. "An Empirical Analysis of Property Appraisal and Mortgage Redlining," The Journal of Real Estate Finance and Economics, Springer, vol. 13(1), pages 45-55, July.
    10. Bradbury, Katharine L. & Mayer, Christopher J. & Case, Karl E., 2001. "Property tax limits, local fiscal behavior, and property values: evidence from Massachusetts under Proposition," Journal of Public Economics, Elsevier, vol. 80(2), pages 287-311, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kokot Sebastian & Gnat Sebastian, 2019. "Identification and Classification of Real Estate Features for the Purpose of an Algorithm-Based Valuation– Case Study within Szczecin," Folia Oeconomica Stetinensia, Sciendo, vol. 19(2), pages 38-55, December.
    2. Berna Keskin & Craig Watkins, 2017. "Defining spatial housing submarkets: Exploring the case for expert delineated boundaries," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1446-1462, May.
    3. Arnab Bhattacharjee & Eduardo Castro & Taps Maiti & João Marques, 2014. "Endogenous spatial structure and delineation of submarkets: A new framework with application to housing markets," SEEC Discussion Papers 1403, Spatial Economics and Econometrics Centre, Heriot Watt University.
    4. Sebastian Gnat, 2021. "Property Mass Valuation on Small Markets," Land, MDPI, vol. 10(4), pages 1-14, April.
    5. Renigier-Biłozor, Małgorzata & Janowski, Artur & Walacik, Marek & Chmielewska, Aneta, 2022. "Modern challenges of property market analysis- homogeneous areas determination," Land Use Policy, Elsevier, vol. 119(C).
    6. Marco Helbich & Wolfgang Brunauer & Eric Vaz & Peter Nijkamp, 2014. "Spatial Heterogeneity in Hedonic House Price Models: The Case of Austria," Urban Studies, Urban Studies Journal Limited, vol. 51(2), pages 390-411, February.
    7. Theodore M. Crone, 2006. "Capitalization of the quality of local public schools: what do home buyers value?," Working Papers 06-15, Federal Reserve Bank of Philadelphia.
    8. Han-Jang No & Dai-Won Kim & Jung-Suk Yu, 2017. "Do Reserve Prices Yield Reference Price Effects in Korean Court Auctions of Residential Real Estate?," International Real Estate Review, Global Social Science Institute, vol. 20(1), pages 75-104.
    9. Liang Peng, 2020. "Benchmarking Local Commercial Real Estate Returns: Statistics Meets Economics," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(4), pages 1004-1029, December.
    10. Shi, Lan & Zhang, Yan, 2015. "Appraisal inflation: Evidence from the 2009 GSE HVCC intervention," Journal of Housing Economics, Elsevier, vol. 27(C), pages 71-90.
    11. Liebelt, Veronika & Bartke, Stephan & Schwarz, Nina, 2018. "Revealing Preferences for Urban Green Spaces: A Scale-sensitive Hedonic Pricing Analysis for the City of Leipzig," Ecological Economics, Elsevier, vol. 146(C), pages 536-548.
    12. Xiaolong Liu, 2013. "Spatial and Temporal Dependence in House Price Prediction," The Journal of Real Estate Finance and Economics, Springer, vol. 47(2), pages 341-369, August.
    13. Downes, Thomas A. & Zabel, Jeffrey E., 2002. "The impact of school characteristics on house prices: Chicago 1987-1991," Journal of Urban Economics, Elsevier, vol. 52(1), pages 1-25, July.
    14. Jéssica Fernanda Castaño Lavado. & Miguel Ángel Morales Mosquera, 2015. "Revisión Metodológica de Índices de Precios de la Vivienda," Temas de Estabilidad Financiera 81, Banco de la Republica de Colombia.
    15. Gnat Sebastian, 2019. "Measurement of entropy in the assessment of homogeneity of areas valued with the Szczecin Algorithm of Real Estate Mass Appraisal," Journal of Economics and Management, Sciendo, vol. 38(4), pages 89-106, December.
    16. James Conklin & Moussa Diop & Mingming Qiu, 2022. "Religion and Mortgage Misrepresentation," Journal of Business Ethics, Springer, vol. 179(1), pages 273-295, August.
    17. Charles-Olivier Amédée-Manesme & Michel Baroni & Fabrice Barthélémy & Francois des Rosiers, 2017. "Market heterogeneity and the determinants of Paris apartment prices: A quantile regression approach," Urban Studies, Urban Studies Journal Limited, vol. 54(14), pages 3260-3280, November.
    18. Gao, Qishuo & Shi, Vivien & Pettit, Christopher & Han, Hoon, 2022. "Property valuation using machine learning algorithms on statistical areas in Greater Sydney, Australia," Land Use Policy, Elsevier, vol. 123(C).
    19. Füss, Roland & Koller, Jan A., 2016. "The role of spatial and temporal structure for residential rent predictions," International Journal of Forecasting, Elsevier, vol. 32(4), pages 1352-1368.
    20. Petra Visser & Frank Van Dam & Pieter Hooimeijer, 2008. "Residential Environment And Spatial Variation In House Prices In The Netherlands," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(3), pages 348-360, July.

    More about this item

    Keywords

    mass appraisal; appraisal algorithms; elementary terrains; spatial analyses;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:remava:v:27:y:2019:i:3:p:42-58:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.