An evaluation method for searching the functional relationships between property prices and influencing factors in the detected data. (23rd May 2022)

• Record Type: Journal Article
• Authors: Morano, Pierluigi; Tajani, Francesco; Giudice, Vincenzo Del; Paola, Pierfrancesco De; Liddo, Felicia Di
• Is Part Of: International journal of business intelligence and data mining. Volume 21:Number 1(2022)
• Page Start: 23
• Page End: 47
• Publication Date: 2022-05-23
• Subjects: price property formation -- office market -- retail market -- automated valuation methods -- AVMs -- genetic algorithm -- reliable valuations; 006.312
• Languages: English
• ISSNs: 1743-8187

Abstract

The economic crisis of the last decade, started from the real estate sector, has spread the awareness of the importance of the use of advanced evaluation models, as a support in the assessments and in the periodic value updates of public and private property assets. With reference to a sample of recently sold properties located in the city of Rome (Italy), an innovative automated valuation model is explained and applied. The outputs are represented by different mathematical expressions, able to interpret and to simulate the investigated phenomena (i.e. the market prices formation). The application carried out outlines, in the selection phase of the best model, the fundamental condition that the valuer must adequately know the reference market. In this way, it is possible to identify the existing patterns in the detected data in terms of mathematical expressions, according to the empirical knowledge of the economic phenomena.