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Received 13.01.2022

Revised 13.05.2022

Accepted 14.06.2022

Retrieved from Iss. 111, 2022

Pages 382 -390

  • 139 Views

Suggested citation

Bondarenko, L., Liashenko, Ya., & Petrenko, N. (2022). ANALYSIS OF MATHEMATICAL METHODS OF IMPLEMENTATION THE COMPARATIVE APPROACH IN REAL ESTATE AVALUATION . Automobile Roads and Road Construction, (111), 382-390. https://doi.org/10.33744/0365-8171-2022-111- 382-390

ANALYSIS OF MATHEMATICAL METHODS OF IMPLEMENTATION THE COMPARATIVE APPROACH IN REAL ESTATE AVALUATION

Liudmyla Bondarenko Yana Liashenko Nataliia Petrenko

Abstract

The effectiveness of modern mathematical methods of implementation the comparative approach in real estate evaluation is analyzed in the work. Within this approach the following mathematical methods of determining corrective amendments to the value of the valuation object were analyzed: expert method, method based on solving a system of linear equations, calculation method based on normalized distances in the space of price-forming factors, and correlation-regression method. The main computing formulas and the sequence of calculations for each of the researched methods are outlined. The main criteria for choosing one or another method are defined on the basis of their advantages and disadvantages and application restrictions. The results of a computational experiment investigating the degree of sensitivity of mathematical methods regarding ways of formalization (digitization) of the initial qualitative information in determining the value of real estate objects within a comparative approach are presented. It is represented that the method of determining corrective amendments based on the solution of a system of linear equations is the most sensitive to the choice of the method of digitization of the initial data, the method of calculation based on normalized distances in the space of price-forming factors is less sensitive, and the correlation-regression method is not sensitive at all. 

Keywords:

real estate, valuation of property and real estate, digitization of original data, comparative approach in real estate valuation, value of real estate object

References

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https://doi.org/10.33744/0365-8171-2022-111- 382-390

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