Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Effect of Hybrid Attributes on Property Prices

The Effect of Hybrid Attributes on Property Prices AbstractThis study focuses on the sales comparison and the adjustment grid methods, under the framework of the market approach to valuation. The literature mostly focuses on the structural qualities of the properties, referring to the buildings and their locational characteristics, which pertain to their positioning within the urban fabric. Here we focus on a particular set of attributes which depend on how a building is placed in a specific land plot and relate to the surrounding environment. The term «hybrid» is used to identify this class of attributes. It is shown that hybrid attributes affect property prices and should not be disregarded by practitioners and appraisers. The role played by hybrid characteristics is analyzed based on the methodological foundation of the hedonic and the adjustment grid methods. The derived linear and log-linear models are tested by means of a case study. The models prove to have high explanatory power. The weight of each hybrid attribute is estimated to vary between 1% and 10%. Overall, these attributes contribute to 17-23% of the property prices. The validation performed using the grid adjustment method shows that the estimated marginal prices are effective in adjusting the prices per unit area of the comparables. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Real Estate Management and Valuation de Gruyter

The Effect of Hybrid Attributes on Property Prices

Loading next page...
 
/lp/de-gruyter/the-effect-of-hybrid-attributes-on-property-prices-uJOIXqs5gB
Publisher
de Gruyter
Copyright
© 2021 Sergio Copiello et al., published by Sciendo
ISSN
1733-2478
eISSN
2300-5289
DOI
10.2478/remav-2021-0028
Publisher site
See Article on Publisher Site

Abstract

AbstractThis study focuses on the sales comparison and the adjustment grid methods, under the framework of the market approach to valuation. The literature mostly focuses on the structural qualities of the properties, referring to the buildings and their locational characteristics, which pertain to their positioning within the urban fabric. Here we focus on a particular set of attributes which depend on how a building is placed in a specific land plot and relate to the surrounding environment. The term «hybrid» is used to identify this class of attributes. It is shown that hybrid attributes affect property prices and should not be disregarded by practitioners and appraisers. The role played by hybrid characteristics is analyzed based on the methodological foundation of the hedonic and the adjustment grid methods. The derived linear and log-linear models are tested by means of a case study. The models prove to have high explanatory power. The weight of each hybrid attribute is estimated to vary between 1% and 10%. Overall, these attributes contribute to 17-23% of the property prices. The validation performed using the grid adjustment method shows that the estimated marginal prices are effective in adjusting the prices per unit area of the comparables.

Journal

Real Estate Management and Valuationde Gruyter

Published: Dec 1, 2021

Keywords: market comparison approach; sales comparison method; adjustment grid method; hybrid attributes; marginal prices; C13; R30

There are no references for this article.