A Variety of Projects in Research and Industry ERES Annual Conference Delft ERES 2017 Content Non transparancy and heterogeneity of AVM The problem of various terms ID: 906170
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Slide1
Automated Valuation Models:A Variety of Projects in Research and Industry
ERES Annual Conference, Delft
ERES 2017
Slide2Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
2
Slide3Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry3
Slide4Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
4
Slide5A number of 6 top-level-perspectives are considered in the AVM systematization approach
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
5
Valuation MethodsApplication FieldsContriesUserAVMSystematization(Perspectives)Property TypeScale of Valuation
Slide6Used
Literature
67 relevant
sources
were analyzed and used for the AVM systematization approach ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry6AVMCAMAPortfolio ValuationBatch Valuation202001 - 2017Mass Appraisal
51
1998 - 2017
35
2001 - 2017
6
2008 - 2017
3
2013 - 2017
Research Paper
Teaching Material
Valuation Guidelines
Standards
White Paper
Monographs
Academia
Practice
Subject
Time
period
of
sources
Subject
Number
of
Sources
Time
period
of
sources
Number
of
Sources
Main
p
erspective
of
the
Dissertation
Slide7Literature-based approach:An example of 20 relevant
sourcesERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
7
Slide8Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
8
Slide9AVMs are used in valuation processes with different scales: F
rom single
valuations
to
large-scale valuationsERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry9
Slide104 general types of modelling are used within the model specification
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
10
Slide11Hedonic models continue to be the most common basis for AVMERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
11
Slide12Nearly 50 different calibration methods are mentioned in the relevant literatureERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
12
Slide13ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry
13
Nearly 50 different calibration methods are mentioned in the relevant literature
Slide14The MRA continues to be the main calibration
instrument in an AVM development
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
14
Slide15A multi-dimensional AVM toolbox can be derived from the empirical analysis
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
15
AVMmodel specificationmodel calibrationSales Comparison ApproachCost ApproachIncome ApproachHedonic Price Theory / Methods
Hedonic
Modells
Modelling
Spatial
Effects
Time Series Analysis
MRA
ANN
Hybrid Systems
Emerging
Methods
Other
Estab
.
Methods
Established
/Traditional
Methods
Alterntive
/ Innovative
Methods
Slide16Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
16
Slide1776 Application fields and cases
could be identified
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
17
Slide18AVM supports core processes of real estate management
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
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AVM:Process related PerspectiveAppraisal process redesignOther REAM PurposesTransactionFinancingAccountingTaxation
Audit
Insurance
Slide19AVM most commonly used within
core process „
Financing
“
ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry19
Slide20More detailed breakdown of core processes (5 levels)
ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry
20
Slide217 out of 10 most common use cases
are related
to
core process „Finance“ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry21
Slide22Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
22
Slide23AVMs are currently primarily developed and used for residential
properties / portfoliosERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
23
Slide24Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
24
Slide2535 potential users were assigned to the identified application fieldsERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
25
Slide26AVM Systematization – UserERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
26
Slide27AVM Systematization – UserERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
27
Slide28Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
28
Slide29In total 26 countries from five continentsare using AVM for different purposes
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
29
Slide30Within the US, more than 50% of all identified AVM applications are documented
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
30
Slide31All countries with the most applications use AVM for auditERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
31
Slide32Content
Non-transparancy
and
heterogeneity
of AVM: The problem of various terms, definitions and fields of useSystematization of AVM: A literature-based approachMethod related PerspectiveProcess related PerspectiveProperty related PerspectiveUser related PerspectiveCountry related PerspectiveConclusion
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
32
Slide33Conclusion - AVM Results
Methods: The HPT / regression continues to be the central model of AVMs
.
The current
research develops and tests innovative, more flexible methods and combines existing methods to hybrid model solutions.Scale: AVM valuations range from the individual valuation over batch/portfolio valuations to mass appraisalApplication fields:76 different application cases were identified and could be assigned to 8 higher-level application fields.The current focus of the AVM application is still on the field of "Financing" and "Audit“Property Types: AVMs are currently mainly developed and applied for residential real estate purposes .Especially in the field of commercial and special properties, there are just very few documented projects User:35 potential users were identified and assigned for the identified application purposes.The catalog of users is not exhaustive. Further users are possible.Countries: In total 26 countries from five continents use AVM for different purposes.There is a need for research, in particular, for countries which have a much lower market transparency and have not enough data for the conventional modeling process.ERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry33
Slide34Thank you for your attention!
ERES 2017
Automated Valuation Models - A Variety of Projects in Research and Industry
34
Slide35ContactBauhaus-Universität Weimar Department: Real Estate Economics
Marienstraße 7aD-99423 Weimar
PhD
-
Student:Andreas Kindt M.Sc. Telefon: +49 (0)3643 584383 Email: andreas.kindt@uni-weimar.deSupervisor:PD Dr. habil. Steffen Metzner MRICSTelefon: +49 (0)3643 584384Email: steffen.metzner@uni-weimar.deInternet: www.immo-oek.deERES 2017Automated Valuation Models - A Variety of Projects in Research and Industry35