Using multiple criteria decision analysis (MCDA) to assist in estimating residential housing values

    Fernando A. F. Ferreira  Info
    Ronald W. Spahr Info
    Mark A. Sunderman Info

Abstract

Considerable literature exists regarding the complexity of the residential real estate appraisal process and the methods employed to determine initial listing prices as estimates of intrinsic market prices. Deviations in residential real estate intrinsic values occur due to a multiplicity of attributes and explanatory factors requiring consideration. We conduct a panel study using a Multiple Criteria Decision Analysis (MCDA) based framework that utilizes the skills and knowledge of a panel of residential real estate professionals (i.e. appraisers and realtors). We demonstrate how cognitive mapping and the 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 managerial implications of our MCDA-based framework and some avenues for future research are also presented.

First Publish Online: 14 Dec 2016

Keywords:

Decision support, Housing valuation, MCDA, Residential real estate

How to Cite

Ferreira , F. A. F., Spahr, R. W., & Sunderman, M. A. (2016). Using multiple criteria decision analysis (MCDA) to assist in estimating residential housing values. International Journal of Strategic Property Management, 20(4), 354-370. https://doi.org/10.3846/1648715X.2015.1122668

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December 14, 2016
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2016-12-14

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How to Cite

Ferreira , F. A. F., Spahr, R. W., & Sunderman, M. A. (2016). Using multiple criteria decision analysis (MCDA) to assist in estimating residential housing values. International Journal of Strategic Property Management, 20(4), 354-370. https://doi.org/10.3846/1648715X.2015.1122668

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