Brano Glumac and François Des Rosiers
Automated valuation models have been in use at least for the last 50 years in both academia and practice, while automated valuation recently re-emerged as very important with the…
Abstract
Purpose
Automated valuation models have been in use at least for the last 50 years in both academia and practice, while automated valuation recently re-emerged as very important with the rise of digital infrastructure. The current state of the art, therefore, justifies the dual contributions of this paper: organising existing knowledge and providing a new framework.
Design/methodology/approach
This paper provides much-needed analysis and synthesis of the accumulated body of knowledge by proposing an updated classification of automated valuation approaches based on two criteria, and a taxonomy adapted to new trends. The latter requires a paradigm shift from models to automated valuation systems. Both classification and taxonomy arose after literature review.
Findings
This paper provides a framework for an explicit context under which automated valuation is carried out. To do so, authors propose a definition of automation valuation systems; contextualise the differences among theories, approaches, methods, models and systems present in automated valuation and introduce a classification of automated valuation approaches and a non-hierarchical taxonomy of automated valuation systems.
Research limitations/implications
Perhaps, a systematic literature review process instead of a selective list of 100 references could additionally validate the proposed classification and taxonomy.
Practical implications
The new framework, underlying various dimensions of the automated valuation process, can help practitioners surpass judging models based purely on their predictive accuracy. Also, the automated valuation system is a more generic term that can better accommodate future research coming from a multitude of disciplines, more diverse business areas and enlarged variety of practical users.
Originality/value
This is the first paper that develops a taxonomy of automated valuation systems.
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Brano Glumac and François Des Rosiers
The current state-of-the-art recognises three traditional valuation approaches. The current division is not sufficient to explain systematically all features that drive the…
Abstract
Purpose
The current state-of-the-art recognises three traditional valuation approaches. The current division is not sufficient to explain systematically all features that drive the development and usage of automated valuation models.
Design/methodology/approach
This practice briefing reviews existing valuation approaches, their pros and cons and more critical other automated valuation aspects or features; both based on a literature review.
Findings
This paper discusses and lists the six critical aspects or features, besides the valuation approaches.
Practical implications
This paper reveals the list of aspects or features that are important to consider when designing an automated valuation model.
Originality/value
This practice briefing discusses the inclusion of a multitude of aspects when considering an automated valuation model design.
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Brano Glumac and Thomas P. Wissink
This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is…
Abstract
Purpose
This paper aims to report on homebuyers’ preferences and willingness to pay for installed home photovoltaic systems. Their influence on the market position of a dwelling is relatively unknown. Considering that expected lifespan of photovoltaic systems is at least 25 years, it is likely that many dwellings with a photovoltaic system will enter the housing market.
Design/methodology/approach
Few houses with installed photovoltaic systems have been sold in the market to date. Lack of real market data imposes a method based on the stated preference data. Therefore, the general preferences toward photovoltaic systems are determined by a discrete choice model based on responses of 227 homebuyers in the Eindhoven region, The Netherlands. Further, the model estimates were used to assess the indirect willingness to pay for home photovoltaic systems. This initial willingness to pay is further reassessed with the direct willingness to pay collected in an open-ended questionnaire format.
Findings
Results of the model show that the homebuyers’ preferences for home photovoltaic systems are large and significant. In addition to general preferences, this article reports on the taste heterogeneity carried out by separating observations based on the respondents’ characteristics. For example, photovoltaic systems are more appealing to homebuyers in more urban or central neighbourhoods. Further, the results of the direct survey lead to the conclusion that people are probably willing to pay close to the replacement value of the system and only 22 per cent of all respondents did not want to pay anything for the installed photovoltaic system.
Research limitations/implications
These findings are exploratory and they raise a number of questions for further investigations, such as those regarding the real estate value of the installed photovoltaic systems. The reported findings must be regarded as local, thus further research is necessary to understand the impact on European housing markets.
Practical implications
Preferences and willingness to pay for home photovoltaic systems can provide a variety of economic, social and political recommendations to different interested parties such as homeowners, buyers, realtors, retailers, energy companies and governments. For instance, a homeowner would like to know what would be the effect of a photovoltaic system on the housing market.
Originality/value
As per the knowledge of authors, this is the first paper to estimate the impact of an installed photovoltaic system on housing choice, measured by stated choice data in the local housing market. It expands the existing body of knowledge for increasingly important issues of valuing and measuring preferences for photovoltaic systems installed on dwellings.
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Brano Glumac, Qi Han, Jos Smeets and Wim Schaefer
A brownfield site is well described by various definitions and the idea to redevelop it is supported by identifying numerous benefits for the society. Further, the existing…
Abstract
Purpose
A brownfield site is well described by various definitions and the idea to redevelop it is supported by identifying numerous benefits for the society. Further, the existing literature covers a broad range of different aspects of the brownfield redevelopment thus elaborating different features. At present, there is no overview of the brownfield features from the real estate development perspective focusing on the physical, legal and financial aspects of a site and property. This paper aims to address these issues.
Design/methodology/approach
At first, this paper contributes with the literature survey after which the features were structured according to the real estate development perspective. Additionally, the authors distinguish different expert groups and show the importance of keeping apart their aggregated opinions. Fuzzy Delphi technique is considered as an excellent method to gather such diverse panel data since it supports expert diversity in its procedure and calculation. Additionally, this method captures the uncertainty due to the human factor in valuation and thus improves the validity of the features quantification.
Findings
The survey was among the experts grouped by the specific goals and tasks. This paper presents the findings how the different expert groups value the brownfield features relevant for development potential and what they are.
Originality/value
The paper aims to contribute to the complex decision‐making process in brownfield redevelopment by identifying, structuring and rating the most relevant features of development potential. The authors introduced the method that highlights the importance of rigorous procedure for the panel data collection and advances the weighting of the features. This is of particular importance for the field of the real estate development appraisal since the present features or variables influence the future marketability and cost of a development. Missing these features seriously endangers the appraisal. A similar threat can influence any econometric model recently extensively used in policymaking.
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Brano Glumac, Marieke A. Oosterbaan, Wim F. Schaefer and Kairi Sulla
– This paper aims to propose a decision support tool that would aid decision-makers to implement energy-saving measures efficiently in a corporate real estate.
Abstract
Purpose
This paper aims to propose a decision support tool that would aid decision-makers to implement energy-saving measures efficiently in a corporate real estate.
Design/methodology/approach
The tool consists of a system dynamic model that allows describing and quantifying the complex interaction between potential maintenance scenarios, external energy factors and case-specific conditions. In addition, to include the uncertainty of some of the input variables related to the external energy factors, Monte Carlo simulation has been applied.
Findings
A case study of a city hall in The Netherlands showed the usability of the proposed tool. Over the selected period of 20 years, applying the chosen set of interventions, the simulation showed possible gains in the net present value and significant decrease of energy consumption and carbon emission. Municipal officials and consultants verified the tool for energy efficiency.
Research limitations/implications
Although the tool has proved its functionality in one case study, to test its robustness, additional case studies would be preferable.
Practical implications
The assessment tool can help organizations in assessing energy-efficient maintenance scenarios that include multiple technical energy efficiency interventions as a part of other maintenance activities.
Originality/value
There are numerous ways to increase building’s energy efficiency, but a lack of knowledge is often hindering the enhancement of maximal benefits. A tool that would assess both financial and environmental benefits of potential technical intervention would provide useful insights into corporate’s real estate current and possible future energy performance. This would aid corporations in making better decisions regarding finances, and on the long run, it will bring an improved corporate image.