The Use of Statistical Methods for Determining Attribute Weights and the Influence of Attributes on Property Value

• Main Authors: Gdakowicz Anna, Putek-Szeląg Ewa
• Format: Article
• Language: English
• Published: Sciendo 2020-12-01
• Series: Real Estate Management and Valuation
• Subjects: attribute weights; dependency coefficients; mass real estate valuation; c40; c89; r33
• Online Access: https://doi.org/10.1515/remav-2020-0030

Determining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.