Hoeven, D.P.W. van der (2022) Appraiser-based automated valuation: A case study of valuing buy-to-let properties in the Netherlands. Master thesis.
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Abstract
Automated valuation methodologies are valuable tools in complementing traditional valuation methods because of their potential in terms of accuracy, efficiency, and reliability. Concurrently, however, these methodologies lack sufficient explainability to be applied in valuation practice. This paper, therefore, proposes a valuation methodology incorporating appraiser expertise to investigate the potential in terms of accuracy, explainability, and reliability. We investigate the implementation of such a methodology in automating buy-to-let property valuations in the Netherlands. To do so, we compare the proposed appraiser-based methodology to other methodologies described in the forecasting literature. We compare these methodologies by forecasting the constituents of market value in the single period capitalization method: vacant possession value, market rent, and gross income multiplier using a unique dataset comprising buy-to-let property transactions in the Netherlands. Using transaction data on all three market value constituents, we find the proposed appraiser-based methodology to have slightly lower accuracy while having similar reliability and possessing more explainability compared to existing methodologies.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Real Estate Studies |
| Supervisor: | Duijn, M. van and Vlist, A.J. van der |
| Date Deposited: | 08 Mar 2022 10:47 |
| Last Modified: | 08 Mar 2022 10:47 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3796 |
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