An Optimal Rubrics-Based Approach to Real Estate Appraisal

Zhangcheng Chen, Yueming Hu, Chen Jason Zhang and Yilun Liu
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Zhangcheng Chen: College of Natural Resources and Environment, South China Agricultural University, Guangzhou 510642, China
Yueming Hu: College of Natural Resources and Environment, South China Agricultural University, Guangzhou 510642, China
Chen Jason Zhang: Department of Computer Science and Engineering, Hong Kong University of Science and Technology, Hong Kong, China
Yilun Liu: College of Natural Resources and Environment, South China Agricultural University, Guangzhou 510642, China

Sustainability, 2017, vol. 9, issue 6, 1-19

Abstract: Traditional real estate appraisal methods obtain estimates of real estate by using mathematical modeling to analyze the existing sample data. However, the information of sample data sometimes cannot fully reflect the real-time quotes. For example, in a thin real estate market, the correlated sample data for estimated object is lacking, which limits the estimates of these traditional methods. In this paper, an optimal rubrics-based approach to real estate appraisal is proposed, which brings in crowdsourcing. The valuation estimate can serve as a market indication for the potential real estate buyers or sellers. It is not only based on the information of the existing sample data (just like these traditional methods), but also on the extra real-time market information from online crowdsourcing feedback, which makes the estimated result close to that of the market. The proposed method constructs the rubrics model from sample data. Based on this, the cosine similarity function is used to calculate the similarity between each rubric for selecting the optimal rubrics. The selected optimal rubrics and the estimated point are posted on a crowdsourcing platform. After comparing the information of the estimated point with the optimal rubrics on the crowdsourcing platform, those users who are connected with the estimated object complete the appraisal with their knowledge of the real estate market. The experiment results show that the average accuracy of the proposed approach is over 70%; the maximum accuracy is 90%. This supports that the proposed method can easily provide a valuable market reference for the potential real estate buyers or sellers, and is an attempt to use the human-computer interaction in the real estate appraisal field.

Keywords: real estate appraisal; optimal rubrics; similarity; cosine similarity function; crowdsourcing (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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