This study focuses on the sales comparison and the adjustment grid methods, under the framework of the market approach to valuation. The literature mostly focuses on the structural qualities of the ...properties, referring to the buildings and their locational characteristics, which pertain to their positioning within the urban fabric. Here we focus on a particular set of attributes which depend on how a building is placed in a specific land plot and relate to the surrounding environment. The term «hybrid» is used to identify this class of attributes. It is shown that hybrid attributes affect property prices and should not be disregarded by practitioners and appraisers. The role played by hybrid characteristics is analyzed based on the methodological foundation of the hedonic and the adjustment grid methods. The derived linear and log-linear models are tested by means of a case study. The models prove to have high explanatory power. The weight of each hybrid attribute is estimated to vary between 1% and 10%. Overall, these attributes contribute to 17-23% of the property prices. The validation performed using the grid adjustment method shows that the estimated marginal prices are effective in adjusting the prices per unit area of the comparables.
For International Valuation Standards (IVS) the estimate of the “forced sale” value implies a value judgment with reference to a degeneration of the market value basis, since “a forced sale” is a ...description of the situation in which the exchange takes place, not a distinct basis of value (IVS 2022, Par. 170.1).The paper illustrates a model that can be used to measure the difference between market value and forced sale value, as an aid to real estate valuations related to real estate executions. The proposed method is aimed at determining the difference between the estimated values and the final sales values obtained through the executive process, on the basis of the Short Table Market Comparison Approach (MCA). This method contributes more appropriately to the estimate of the value obtainable from the outcome of the enforcement process than arbitrary reductions in the market value. An application on a small sample of residential properties undergoing enforcement procedure highlights the possibility of using the Short Table MCA even with a limited number of comparables.
In the real estate appraisal, as well as for any other scientific discipline, there is a continuous development of knowledge with related theoretical and applicative evolution that takes place ...primarily on the doctrinal level. The discipline has been object of regulatory and technological improvement aimed at concretizing and defining theoretical principles and methodologies. The functions of value appraisal, formulated in the different procedures that fall within the Market Oriented Approach indicated by the International Valuation Standard, have undergone a process of evolution that has favoured the introduction of Automated Valuation Methods (AVM). This evolution process represents an improvement of the conventional appraisal models that have improved the techniques of data retrieval and data base access and certify the reliability of the models to build efficient evaluation processes and universally recognized. This article aims at reviewing the methodological evolution in relation to the national market approach that the estimation discipline has recorded in recent years by virtue of the drafting and adoption of the International Valuation Standards.
Il contributo propone l’utilizzo di una rielaborazione dell’uso del Market Comparison Approach per la determinazione del valore di beni immobili che sono stati oggetto di una trasformazione. Esso è ...focalizzato sulla determinazione valore di un bene immobile in seguito a una trasformazione finalizzato alla determinazione del valore di un suolo nell’ambito dell’applicazione dell’extraction method. I risultati, basati su dati di compravendita e riferiti a un caso reale in provincia di Bari, possono essere estesi anche alla valutazione degli immobili in costruzione e alla determinazione del valore di beni immobili in costruzione (investment property under construction) con il metodo del valore futuro.
This essay suggests a re-elaboration of the Marketing Comparison Approach in order to set the value of properties subject to transformation. The essay focuses on identifying the property valuation ...following a certain transformation and is aimed at determining the land value by means of the extraction method. The outcome, based on trading data and a study case in the province of Bari may also be applied to under construction properties valuation and to the identification of the value of properties under construction, (investment property under construction) by means of the Future Value method.
Valuation of intangible assets represents one of the most delicate problems of assessing a company. Usually, valuation of intangible assets is in the process of evaluating enterprise as a whole. ...Therefore, Intangible Asset Valuers must have detailed knowledge on business valuation, in particular, the income-based valuation methods (capitalization / updating net cash flow). Valuation of Intangible Assets is the objective of the International Valuation Standards (GN) 4 Valuation of Intangible Assets (revised 2010). Next to it was recently proposed GN 16 Valuation of Intangible Assets for IFRS reporting. International Accounting Standard (IAS) 38 Intangible Assets prescribe the accounting treatment for intangible assets, analyze the criteria that an intangible asset must meet to be recognized, specific carrying amount of intangible assets and sets out requirements for disclosure of intangible assets. From an accounting perspective, relevant professional accounting standards and the following: IFRS 3 Business Combinations, IAS 36 Impairment of Assets and SFAS 157 fair value measurement, developed by the FASB. There is a more pronounced near the provisions of IAS 38 contained in GN 4. Therefore, a good professional intangible asset valuation must know thoroughly the conditions, principles, criteria and assessment methods recognized by those standards
Similarity degree and the principle of selection are analyzed in this paper. Fuzzy mathematics is used to Market comparison approach. By applying fuzzy theory into real estate valuation, calculation ...example shows that the application of the method of real estate assessment can overcome the shortcomings of traditional methods, the valuation results are more scientific and rational and fair.
In real estate mortgages, it is an important issue to evaluate property accurately in order to guard against security risks. Based on the analysis of current China's real estate market, we present ...the necessity of intelligent system of property value assessment and conduct analyzing and studying by the most widely used market comparison approach. Based on the analyzing work, we design and implement an intelligent appraisal system with the function of data storage, real estate appraisal, data analysis, etc. Designing systems with intelligent evaluation function helps to solve current problems that conclusions of value have been influenced too much by human intervention in the real estate appraisal market.
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