ANALYSIS OF MATHEMATICAL METHODS OF IMPLEMENTATION THE COMPARATIVE APPROACH IN REAL ESTATE AVALUATION

Abstract

. The effectiveness of modern mathematical methods of implementation the comparative approach in real estate evaluation is analyzed in the work. Within this approach the following mathematical methods of determining corrective amendments to the value of the valuation object were analyzed: expert method, method based on solving a system of linear equations, calculation method based on normalized distances in the space of price-forming factors, and correlation-regression method. The main computing formulas and the sequence of calculations for each of the researched methods are outlined. The main criteria for choosing one or another method are defined on the basis of their advantages and disadvantages and application restrictions. The results of a computational experiment investigating the degree of sensitivity of mathematical methods regarding ways of formalization (digitization) of the initial qualitative information in determining the value of real estate objects within a comparative approach are presented. It is represented that the method of determining corrective amendments based on the solution of a system of linear equations is the most sensitive to the choice of the method of digitization of the initial data, the method of calculation based on normalized distances in the space of price-forming factors is less sensitive, and the correlation-regression method is not sensitive at all.