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Innovative Method for Real Estate Valuation Using Data Mining Software

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21110%2F16%3A00305547" target="_blank" >RIV/68407700:21110/16:00305547 - isvavai.cz</a>

  • Result on the web

    <a href="http://2016.creative-construction-conference.com/" target="_blank" >http://2016.creative-construction-conference.com/</a>

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Innovative Method for Real Estate Valuation Using Data Mining Software

  • Original language description

    This paper presents an innovative method for real estate valuation. Currently, the most common method of real estate valuation relies on comparisons with similar structures, cost and yield analysis. The innovative method proposed in this paper, called “historical market price”, uses mathematics, statistical and database-founded algorithms for valuation. Input data comes from specialized software which systematically gathers, analyses and valuates data connected with real estate market development. Every six months the database expands by more than 650,000 price offers (advertisements) on purchase or rent of flats, houses, commercial buildings and allotments. This method can be used for valuation of real estate which was purchased previously if rough data is known about the original transaction (especially purchase price). The method suggested in this paper is grounded in true and exact information taken from the last purchase and identifies structural and technical differences in the condition of given real estate, as well as changes in price levels for the given location (street, neighborhood, city, region, etc.). Current valuation methods are not capable of taking into account these historical, yet exact and valuable pieces of information concerning real estate. Current valuation methods are based solely on current data and present state of the real estate market. This approach may be vulnerable to manipulation by either parties of the purchase contract.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

    JN - Civil engineering

  • OECD FORD branch

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2016

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Creative Construction Conference 2016

  • ISBN

    978-615-5270-24-6

  • ISSN

  • e-ISSN

  • Number of pages

    6

  • Pages from-to

    255-260

  • Publisher name

    Diamond Congress Kft.

  • Place of publication

    Budapest

  • Event location

    Budapest

  • Event date

    Jun 25, 2016

  • Type of event by nationality

    WRD - Celosvětová akce

  • UT code for WoS article