Shih‐MingYou and Chin‐oh Chang
The purpose of this paper is to construct a weight model from the sales comparison approach.
Abstract
Purpose
The purpose of this paper is to construct a weight model from the sales comparison approach.
Design/methodology/approach
Although weighted average of comparables into sales comparison value is commonly applied in the past, most papers only focus mathematical calculation. This paper examines the correlation between weight and attributes of 6,345 sales comparable properties adopting the multiple regression model.
Findings
This paper finds the price type, proximity of transaction date, inside the neighborhood area or not, total gross adjustment as percent, numbers of adjustments and the attributes of other comparables considered in one appraisal are significant on the weight of comparables. The expected MAPE and Hit rate criterions are passed after forecasting 10 percent validation samples modeled by 90 percent samples randomly surveyed.
Practical implications
The weighted average to determine the sales comparison value is reasonable since the value conclusion will “correlate” to indication of value derived by different comparables.
Originality/value
This paper discusses the weight model and forecasts weights directly instead of only forecasting value. By elaborating on the core question of weights, this paper hopes to assist the degree of science and objectivity of appraisal.
Details
Keywords
Ngai‐ming Yip, Chin‐oh Chang and Tzu‐ying Hung
Condominium is a dominant form of home ownership in metropolitan areas within Asia. Yet managing and up‐keeping such homes poses a challenge to most condominium owners, with…
Abstract
Purpose
Condominium is a dominant form of home ownership in metropolitan areas within Asia. Yet managing and up‐keeping such homes poses a challenge to most condominium owners, with larger condominiums equipped with sophisticated facilities becoming increasingly popular. This paper attempts to develop a model, based on a principal‐agent theoretical perspective, which provides a conceptually vigorous representation of condominium management modes: owner‐management; direct labour and third party agent‐managed modes.
Design/methodology/approach
Parallel surveys were conducted in Taipei and Hong Kong to offer empirical evidence of the model.
Findings
From the logistic analysis which this paper conducts, it is argued that not only does the choice of management mode reflect the quest for better management service: the mediation effect of agency costs between the lay members of home owner organisations and their leadership, as well as issues between the owners and the professional management agents, is also significant.
Originality/value
Findings in this paper would help to enhance understanding of the practices used in condominium management and the factors that influence the choice of management mode.
Details
Keywords
Francesco Tajani, Pierluigi Morano, Francesca Salvo and Manuela De Ruggiero
The purpose of this paper is to develop an innovative model that can be included within the market approach methods for property valuations. The algorithm takes into account the…
Abstract
Purpose
The purpose of this paper is to develop an innovative model that can be included within the market approach methods for property valuations. The algorithm takes into account the frequent high level of dissimilarity of the comparables selected for the assessment, thus providing for the use of appropriate similarity and reliability coefficients capable of weighing the data of the comparison sample with respect to the different degrees of similarity and reliability.
Design/methodology/approach
The proposed model borrows the operative logics of the goal programming techniques, in order to identify the solution, the market value of the subject property and the implicit prices of the different influencing factors, since they are more reliable from the mathematical and empirical points of view.
Findings
The model has been applied to two case studies, relating to samples of residential properties located in the city of Naples (Southern Italy). The results obtained have outlined the high valuation performance of the developed appraisal model, capable of overcoming the applicability limits of classical market approach methods as well as providing solutions that are highly consistent with the expected empirical phenomena.
Practical implications
The research takes into account the growing need of both professionals and end users (banks, courts, public and private Entities, etc.) for valuation models that are easily repeatable and sufficiently objective. They are required in order to allow for the rapid verification of the elaborations carried out as well as to check the valuer’s appreciation of the contribution of the influencing factors in the market price formation. The outputs of the two applications developed have highlighted the ability of the proposed model to satisfy these market requests.
Originality/value
The proposed model can be easily implemented through a simple calculation program, with the mathematical structure elaborated allowing to overcome some application limits of the classical market approach methods. Furthermore, the introduction in the algorithm of appropriate similarity and reliability coefficients, capable of suitably weighting the data of the comparison sample, allows to widen the spatial horizon for the identification of the comparables as well as select properties characterized by a high level of dissimilarity. This makes it possible to apply the model in territorial contexts characterized by markets that are not excessively dynamic.