On the distribution of prices in market real estate and «offset» estimations of market value

Abstract

The published results of stochastic modeling and experimental studies on the distribution of prices of real estate markets, accompanied by the conclusions of a systematic overestimation of the market value of the consultants-valuers are stated in the article. Displaying the fundamental difference between the distributions of prices on different objects observed in the real estate market and the distribution of possible prices for the estimated object. The conclusion about the absence of grounds for the allegations of a systematic overestimation of the market value as a result of these differences is fixed. Formation unbiased valuations based on the properties of the distribution of the adjusted average prices of the sample analogs are also explained.

Keywords

• distribution of prices of real estate market
• distribution of prices for the estimated object
• unbiased valuations