<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The subject of this article is the still relevant issue of the adequate choice of comparables in evaluation procedures within the sales comparison approach. The text features the results of an experiment that makes it possible to validate the dependence of the accuracy of the final estimation of the price of valued objects in relation to the criteria of significance of similarity as a determinant of accepting individual objects as sufficiently similar, and the dissimilarity coefficients describing the created reference sets. Based on the example of simulated data, it has been shown that there is a clear relationship between the accuracy of the estimates made and the selection of comparables. In a set of all possible calculation variations, estimations based on selected data are characterized by more accurate calculations relative to parallel calculations carried out on the widest possible sets of comparables.</p>
</abstract>

The subject of this article is the still relevant issue of the adequate choice of comparables in evaluation procedures within the sales comparison approach. The text features the results of an experiment that makes it possible to validate the dependence of the accuracy of the final estimation of the price of valued objects in relation to the criteria of significance of similarity as a determinant of accepting individual objects as sufficiently similar, and the dissimilarity coefficients describing the created reference sets. Based on the example of simulated data, it has been shown that there is a clear relationship between the accuracy of the estimates made and the selection of comparables. In a set of all possible calculation variations, estimations based on selected data are characterized by more accurate calculations relative to parallel calculations carried out on the widest possible sets of comparables.

The Influence of Dissimilarity of Comparables on the Correctness of Estimation in the Comparative Approach Procedure

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution 4.0 International License.

The subject of this article is the still relevant issue of the adequate choice of comparables in evaluation procedures within the sales comparison approach....

The Influence of Dissimilarity of Comparables on the Correctness of Estimation in the Comparative Approach Procedure

Published Online: Mar 13, 2021

Page range: 12 - 20

DOI: https://doi.org/10.2478/remav-2021-0002

Keywords
dissimilarity, property price model, comparables selection, property valuation

© 2021 Jacek Zyga, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

The Influence of Dissimilarity of Comparables on the Correctness of Estimation in the Comparative Approach Procedure

Published Online: Mar 13, 2021

Page range: 12 - 20

DOI: https://doi.org/10.2478/remav-2021-0002

Keywordsdissimilarity, property price model, comparables selection, property valuation

© 2021 Jacek Zyga, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
dissimilarity, property price model, comparables selection, property valuation