Statistical Modeling Applied in Real Estate Valuation
Statistical Modeling Applied in Real Estate Valuation

Statistical Modeling Applied in Real Estate Valuation

Summary/Abstract: The use of statistical models and special applications of statistical processes provides extra support for developing an opinion on the value or analysis. This article presents the method of obtaining statistical models that help stakeholders to better know the specific real market estate. Currently, specialist appraisers use various statistical methods for appraising real estate, a multitude of solutions provided by the mathematical statistics to be applied in this field: MRA - multiple regression analysis, time series, fuzzy logic techniques, ANN – artificial neural networks, NFS - neuro-fuzzy systems and others. The immediate and very palpable advantages of applying these valuation solutions are the automatization of the appraisal process and the existence of control methods for the results achieved. The main disadvantage is the complexity of applying the suggested solutions, requiring a team of specialists from different fields - programmers, statisticians, mathematicians, appraisers, market analysts - to develop and operate systems of this nature and scale.

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