Open AccessApplication of AHP Method in Assessment of the Influence of Attributes on Value in the Process of Real Estate Valuation
Author(s) -
Krzysztof Dmytrów,
Sebastian Gnat
Publication year - 2019
Publication title -
real estate management and valuation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.296
H-Index - 8
ISSN - 2300-5289
DOI - 10.2478/remav-2019-0032
Subject(s) - analytic hierarchy process , real estate , valuation (finance) , pairwise comparison , computer science , cost approach , income approach , actuarial science , operations research , real estate development , business , finance , mathematics , artificial intelligence
Property valuation in the comparative approach requires the determination of the impact of market characteristics on the formation of prices on the local real estate market. Valuers have a variety of methods for determining weights. Some of them require the collection of a sufficiently large database of information on transactions. However, this is not always possible. In the absence of sufficient data, alternative approaches, including an expert approach, may be used. The goal of the article is the proposal of an expert approach at the stage of assessing the influence of attributes on the value of the real estate. The AHP (Analytical Hierarchy Process) method will be used. On its basis, pairwise comparisons of the importance of attributes will be done by experts (valuers). By means of the AHP method, the weights of each attribute will be obtained and, subsequently, the influence of each attribute on the real estate value will be assessed. Research will be done on the basis of 318 real estates in Szczecin.