Principles and Criteria for using Statistical Parametric Models and Conditional Models for Valuation of Multi-Component Real Estate

Abstract

The complexity of multi-component real properties results from the possibility of identifying various components in legal, physical or functional terms. The possibility of distinguishing various functional elements of real properties, combined with the specificity resulting from their market properties, is problematic when applying the comparative approach to real estate valuation. In this case, the valuation procedure can be implemented using statistical models: the parametric model or the conditional one.

Keywords

• conditional model
• parametric model
• statistical models
• real estate valuation
• statistical analysis of the market
• multi-component real estate
• c00
• c13
• c19
• c52