Influential Factors on the Market Value of Residential Properties
Keywords:real estate appraisal, residential properties, sales comparison approach, influential factors, statistical analysis
When using sales comparison approach, it is crucial to apply adjustments based on the differences between the appraised and comparable properties. Estimating the significance of each adjustment is of key importance for performing credible valuation. Adjustments should include factors such as location, physical and functional characteristics of residential properties and external influential factors.
The theoretical part of the article presents the results of research on the importance and impact of various influential factors on the value of residential properties, which have been carried out in various parts of the world. The empirical part of the article presents analytical results about the importance of factors influencing the estimated value of residential properties as presented by different experts. The following factors were included in the study: orientation, views from the property, noise, number of storeys and the age of the building. For the purpose of valuation practice, the linear function and annual depreciation rate have been set. Data needed in the study were collected through interviews with authorised real estate appraisers, court sworn appraisers and real property agents.