Real Estate Management and Valuation (Jun 2019)

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

  • Adamczyk Tomasz,
  • Bieda Agnieszka,
  • Parzych Piotr

DOI
https://doi.org/10.2478/remav-2019-0013
Journal volume & issue
Vol. 27, no. 2
pp. 33 – 43

Abstract

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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