week4 Flashcards by Lachie Ryan

Flashcards in week4 Deck (7)

Loading flashcards...

establishing sub markets

homogenous grouping of properties into sub-market groups
1. according to geo location e.g. within location propertty type e.g. units

2. Property type

how do you estimare the appropriate grouping of properties

sales analysis - look at what type of properties are moving together
local knowledge
trail and error

What is an AVM

Automated valuation Model:
- mathematical generated statistical model that undertakes a pre set calculation depending on the type of data input

2 types of AVM's

1.) indexed = examines a prperty that sold in a particular year and then is resold at a later date
this model assues that the property increased by x% year;y, this model does not take into account rennovations or improvements of property

2.) Hedonic - assumes a holistic approach i.e research calculate the value of a property as a function of certain characteristics

advantages of AVM modesl

speed
no bias - no opinion
dont include human error
in expensive

disadvantages of AVM modesl

no internal inspections
strong reliance on assumptions
A result is not always possible - sometimes no result is given
don't take into account uniqueness of property

land value anaylsis summary

Step 1: Obtain all vacant, or near vacant land sales within the SMG
Step 2: Use scatterplot to demonstrate relationship between sale price and land area within the SMG – reflect “Raw” rate per square metre
Step 3: Identify discrepancies in sale value rates and analyse characteristics/drivers that are the cause, to derive the average land value rate
Step 4: Develop land value rate table ensuring to establish appropriate break points
Step 5: Develop characteristic/driver lookups/matrices

week4 Flashcards Preview

Stat val > week4 > Flashcards

establishing sub markets

homogenous grouping of properties into sub-market groups
1. according to geo location e.g. within location propertty type e.g. units

2. Property type

how do you estimare the appropriate grouping of properties

sales analysis - look at what type of properties are moving together
local knowledge
trail and error

What is an AVM

Automated valuation Model:
- mathematical generated statistical model that undertakes a pre set calculation depending on the type of data input

2 types of AVM's

advantages of AVM modesl

speed
no bias - no opinion
dont include human error
in expensive

disadvantages of AVM modesl

no internal inspections
strong reliance on assumptions
A result is not always possible - sometimes no result is given
don't take into account uniqueness of property

land value anaylsis summary

Decks in Stat val Class (6):

Key Links

Subjects

Company

Find Us

Brainscape's Knowledge GenomeTM

week4 Flashcards Preview

Stat val > week4 > Flashcards

establishing sub markets

homogenous grouping of properties into sub-market groups1. according to geo location e.g. within location propertty type e.g. units2. Property type

how do you estimare the appropriate grouping of properties

sales analysis - look at what type of properties are moving togetherlocal knowledgetrail and error

What is an AVM

Automated valuation Model:- mathematical generated statistical model that undertakes a pre set calculation depending on the type of data input

2 types of AVM's

advantages of AVM modesl

speedno bias - no opiniondont include human errorin expensive

disadvantages of AVM modesl

no internal inspectionsstrong reliance on assumptionsA result is not always possible - sometimes no result is givendon't take into account uniqueness of property

land value anaylsis summary

Key Links

Subjects

Company

Find Us

Brainscape's Knowledge Genome^TM

homogenous grouping of properties into sub-market groups
1. according to geo location e.g. within location propertty type e.g. units

2. Property type

sales analysis - look at what type of properties are moving together
local knowledge
trail and error

Automated valuation Model:
- mathematical generated statistical model that undertakes a pre set calculation depending on the type of data input

speed
no bias - no opinion
dont include human error
in expensive

no internal inspections
strong reliance on assumptions
A result is not always possible - sometimes no result is given
don't take into account uniqueness of property