Português
Combining Cognitive Maps and MCDA Techniques to Assist in Estimating Residential Housing Values
Event Title
2015 BAI International Conference
Year (definitive publication)
2015
Language
English
Country
Macao (Special Administrative Region of the People's Republic of China)
More Information
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Abstract
Much has been written about the appraisal process and the process that is, or should be,
employed in the establishment of initial offering prices on residential real estate. However,
imputation of initial offer prices as estimates of actual market prices for residential real estate is
a complex undertaking. Residential real estate fundamental values deviate due to a variety of
factors that must be considered in the evaluation process. We conduct a panel study using a
multiple criteria decision analysis (MCDA) framework that utilizes the skills and knowledge of
a panel of residential real estate experts (i.e. appraisers and realtors). We demonstrate how the
integrated use of cognitive maps and measuring attractiveness by a categorical based
evaluation technique (MACBETH) may assist in estimating appropriate offer/sale prices and
strengthening current valuation approaches such as using comparables and/or hedonic
modeling. The strengths and weaknesses of our multiple criteria framework are also discussed.
Acknowledgements
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Keywords
Cognitive mapping,Housing valuation,MACBETH,MCDA,Residential real estate.
