<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Determining the weights of market features of real estate in explaining their prices is one of the basic objectives of market analysis, performed as part of the property value estimation process. In practice, property appraisers usually settle for basic methods of determining weights, for example based on the principle of ceteris paribus or on the basis of linear correlation coefficients. The article proposes the use of curvilinear correlation coefficients for this purpose; an attempt of such use was made and the obtained results were compared with the weights determined on the basis of linear correlations. The conducted analyses proved that the inclusion of curvilinear correlations at the stage of market analysis, allows for extracting a greater number of features recognized as price-creating, i.e. leads to a smaller loss of market information and is a more reliable tool for determining the weights of attributes in price explanation.</p></abstract>

Determining the weights of market features of real estate in explaining their prices is one of the basic objectives of market analysis, performed as part of the property value estimation process. In practice, property appraisers usually settle for basic methods of determining weights, for example based on the principle of ceteris paribus or on the basis of linear correlation coefficients. The article proposes the use of curvilinear correlation coefficients for this purpose; an attempt of such use was made and the obtained results were compared with the weights determined on the basis of linear correlations. The conducted analyses proved that the inclusion of curvilinear correlations at the stage of market analysis, allows for extracting a greater number of features recognized as price-creating, i.e. leads to a smaller loss of market information and is a more reliable tool for determining the weights of attributes in price explanation.

Linear and Nonlinear Weighing of Property Features

Faculty of Mining Surveying and Environmental Engineering

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Linear and Nonlinear Weighing of Property Features"}

Determining the weights of market features of real estate in explaining their prices is one of the basic objectives of market analysis, performed as part of...

Linear and Nonlinear Weighing of Property Features

Published Online: Apr 15, 2019

Page range: 59 - 68

DOI: https://doi.org/10.2478/remav-2019-0006

Keywords
real estate market analysis, real estate features weights, linear and non-linear correlation

© 2019 Anna Barańska, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Linear and Nonlinear Weighing of Property Features

Published Online: Apr 15, 2019

Page range: 59 - 68

DOI: https://doi.org/10.2478/remav-2019-0006

Keywordsreal estate market analysis, real estate features weights, linear and non-linear correlation

© 2019 Anna Barańska, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
real estate market analysis, real estate features weights, linear and non-linear correlation