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

<p>The subject of the considerations presented in the article is the question of the criteria according to which the comparables, in the market value estimating process, should be selected. As the most important in the selection of comparative properties, the factor of similarity in relation to the subject property (measured by the Euclidean distance) was considered. As the key issue, the similarity assessment criterion and the influence of the adopted critical value of this criterion on the accuracy of estimates were chosen. The analysis of the above was carried out with taking into account the role of the significance of independent variables (measured by their correlation with the vector of the dependent variable). The results of the simulation tests carried out in the variants set by the criteria adopted were presented. On this basis, it has been shown that there is a potential most relevant solution in the collection of obtainable estimation results. This solution corresponds with the smallest sum of the differences of model prices (accepted as known) and corresponding estimates. The found minimum occurs for a specific layout of the above criterion values only.</p>
</abstract>

The subject of the considerations presented in the article is the question of the criteria according to which the comparables, in the market value estimating process, should be selected. As the most important in the selection of comparative properties, the factor of similarity in relation to the subject property (measured by the Euclidean distance) was considered. As the key issue, the similarity assessment criterion and the influence of the adopted critical value of this criterion on the accuracy of estimates were chosen. The analysis of the above was carried out with taking into account the role of the significance of independent variables (measured by their correlation with the vector of the dependent variable). The results of the simulation tests carried out in the variants set by the criteria adopted were presented. On this basis, it has been shown that there is a potential most relevant solution in the collection of obtainable estimation results. This solution corresponds with the smallest sum of the differences of model prices (accepted as known) and corresponding estimates. The found minimum occurs for a specific layout of the above criterion values only.

The influence analysis of criteria of comparables’ selection on the accuracy of the property value estimation

Reports on Geodesy and Geoinformatics

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

The subject of the considerations presented in the article is the question of the criteria according to which the comparables, in the market value estimating...

The influence analysis of criteria of comparables’ selection on the accuracy of the property value estimation

Article Category: Original Article

Published Online: Apr 21, 2020

Page range: 9 - 15

Received: Sep 12, 2019

Accepted: Mar 26, 2020

DOI: https://doi.org/10.2478/rgg-2020-0002

Keywords
Similarity assessment criterion, property valuation, LS estimation

© 2020 Jacek Zyga, published by Sciendo

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

The influence analysis of criteria of comparables’ selection on the accuracy of the property value estimation

Article Category: Original Article

Published Online: Apr 21, 2020

Page range: 9 - 15

Received: Sep 12, 2019

Accepted: Mar 26, 2020

DOI: https://doi.org/10.2478/rgg-2020-0002

KeywordsSimilarity assessment criterion, property valuation, LS estimation

© 2020 Jacek Zyga, published by Sciendo

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

Keywords
Similarity assessment criterion, property valuation, LS estimation