The Influence of Dissimilarity of Comparables on the Correctness of Estimation in the Comparative Approach Procedure

Zyga Jacek ()
Additional contact information
Zyga Jacek: Faculty of Engineering and Architecture, Lublin University of Technology

Real Estate Management and Valuation, 2021, vol. 29, issue 1, 12-20

Abstract: The subject of this article is the still relevant issue of the adequate choice of comparables in evaluation procedures within the sales comparison approach. The text features the results of an experiment that makes it possible to validate the dependence of the accuracy of the final estimation of the price of valued objects in relation to the criteria of significance of similarity as a determinant of accepting individual objects as sufficiently similar, and the dissimilarity coefficients describing the created reference sets. Based on the example of simulated data, it has been shown that there is a clear relationship between the accuracy of the estimates made and the selection of comparables. In a set of all possible calculation variations, estimations based on selected data are characterized by more accurate calculations relative to parallel calculations carried out on the widest possible sets of comparables.

Keywords: dissimilarity; property price model; comparables selection; property valuation (search for similar items in EconPapers)
JEL-codes: C18 C38 C51 R15 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/remav-2021-0002 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:29:y:2021:i:1:p:12-20:n:4

DOI: 10.2478/remav-2021-0002

Access Statistics for this article

Real Estate Management and Valuation is currently edited by Sabina Zrobek

More articles in Real Estate Management and Valuation from Sciendo
Bibliographic data for series maintained by Peter Golla ().