The utilization of complementary modalities in real estate appraisal

Miroslav Despotovic, David Koch, Wolfgang Brunauer, Stumpe Eric, Emanuel Stocker and Matthias Zeppelza

ERES from European Real Estate Society (ERES)

Abstract: The valuation of property interiors is highly dependent on subjective and implicit decisions of the analyst, which can be a significant limitation in practice. The descriptions of the interior features often do not reflect the quality truthfully (e.g., the quality of two new kitchens may differ significantly) or are intentionally formulated in a positive way in order to arouse the interest of the users.One way to address this issue would be to use complementary information as the key to more robust information extraction and higher data quality.We conducted an experimental approach to determine the quality of property interiors based on iterative cognitive voting of image pairs with multiple visual modalities utilizing the Elo scoring system. Using the obtained Elo values, we derived the inference for our experiment by predicting the rental and purchase prices along with additional explanatory variables. The study shows that incremental evaluation of indoor images by independent persons in the sense of active learning can serve as a control variable for price, thus demonstrating that the Elo rating system, which has not yet been used in hedonic evaluation, has potential for further investigation.

Keywords: elo rating; hedonic; photographs (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2022-01-01
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:2022_43

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