Determining Property Value: Considering the Position of the Average Price Relative to Extreme Prices

Ewelina Nawrocka and Micha Eckstein

ERES from European Real Estate Society (ERES)

Abstract: In Polish law, which regulates the valuation of real estate, four main approaches are distinguished: comparative, income, cost, and mixed. Each approach encompasses specific valuation methods. This presentation focuses on the comparative approach. Within this approach, three methods are recognized: pairwise comparison, median price adjustment, and market statistical analysis. Recent amendments in legal provisions, among other changes, pertain to the method of adjusting the average price. The objective of this study is to develop a new methodology to support Polish property appraisers in real estate valuation. The research outcome comprises mathematical formulas recommended for practical application in adjusting the average price method, while considering the location of the average price within the range between the minimum and maximum prices of similar real estate.

Keywords: average price; Location; Methods (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-ure
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