Object and objective of property appraisal and their effects on valuation methods and databases

• Main Author: Jacek Zyga
• Format: Article
• Language: English
• Published: Association of Surveyors of Slovenia (Zveza geodetov Slovenije) 2019-03-01
• Series: Geodetski Vestnik
• Subjects: property; market value; valuation methods; cadastre
• Online Access: http://www.geodetski-vestnik.com/63/1/gv63-1_zyga.pdf
• ISSN: 0351-0271; 1581-1328

The purpose of this paper is to compare essences of parallel methods in property appraisal, being done in econometric and non-econometric ways. Through the analysis of formal conditions and on the background of the definition of the real estate market value, both of analysed methods are tested, whether they can lead to results that can be interpreted in the same way. The key role of sense of the market value connected with reality of precisely defined objects of appraisal, was emphasised. Presented considerations lead to the conclusion that the necessary condition for a positive assessment of the results of calculations as a conclusion concerning “the market value of a specific property”, is verifying the type of data on which the calculations were based, and if obtained result refers to a specific object or to a certain group/class of objects. Another discussed problem of property valuation is the recurrence of several estimations. It was explained that in order to obtain a number of similar quote evaluations an appropriately compiled database about sold objects must exist. Only when everyone uses comparable reference data it can be expected, that estimations using these data can give comparable valuation results. The response to a need of such databases is making relevant, accessible and complete data about the property market.