8,518 research outputs found
Appraisal methods and the non-agency mortgage crisis
No full textSince the global economic crisis of 2007–08 an increasing amount of
attention has been directed to the links between the financial system and the real
estate industry. This paper ties to this discussion insofar as it focuses on the relationship
between the methodology of property valuation and the recent non-agency
or subprime crisis. After a brief discussion of the crisis various questions are raised
concerning both the theoretical background and the application of property valuation,
property management and automated valuation modelling. Despite the
magnitude of the crisis in terms of the financial loss suffered, our observation is that
the mainstream real estate academia is still essentially preoccupied with the task of
integrating financial and property markets. Apparently, after the crisis financial
models based on the concept of perpetual increasing income are still used, and
deterministic relations between value and property characteristics still constitute the
dominant paradigm. In the hope of avoiding repeating the errors that led to the crisis
we identify the need to analyse this crisis from a property valuation point of view.
We contend that in-depth analysis of the tools used in property valuation is necessary
to understand why and how valuation methods should be improved given
recent experiences
Gap analysis: anomalies and paradoxes, questions, dilemmas and motivations
No full textThis chapter is an innovative way to expand the current theory of value formation: for both organic value creation and intentional price setting mechanisms and processes alike. It provides a link to the economic sustainability concept and, in that way, to the broader sustainable real-estate debate. To set the agenda for developing new thoughts on value, valuation and sustainability in the built environment, the chapter summarizes the argumentation. It discusses a recognised ‘gap’ between the difficulties of valuation and the competence or awareness of individuals to sort the given difficulties. The identification of ‘gaps’ meshes sustainable development laggardness, ethical issues and other problematic circumstances. The most significant gap is in the lack of political awareness in the profession about the changes in value systems that have occurred particularly over the last 30 years. This is mainly due to the impact of neo-liberal political economic thinking on ethics and knowledg
Technical Comparison of the Methods Including Formal Testing of Accuracy and Other Modelling Performance Using Own Data Sets and Multiple Regression Analysis
No full textAn Application of Regressed Discounted Cash Flow as an Automated Valuation Method: A Case in Bari
No full textThe application of automated valuation methodology (AVM) procedure
to income approach normally deals with direct capitalization. This happens
although the great diffusion of discounted cash flow (DCF) analysis. The main
objectives of paper are twofold: first, we aim to propose an AVM procedure based
on the relationship between the DCF inputs and outputs. Second, we seek to
determine discount rate and local risk premium in the case of Bari commercial
market The study also refines discussions on risk premium factor in the regressed
DCF application. The study also and identifies the room for enhancing the suggested
methodology. The solution proposed is the model A of Regressed DCF
(d’Amato and Kauko 2012)
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