A comparison between MRA and rough set theory for mass appraisal. A case in Bari

Abstract

Rough Set Theory is a property valuation methodology recently applied to property market data (d'Amato, 2002). This methodology may be applied in property market where few market data are available or where econometric analysis may be difficult or unreliable. This methodology was introduced by a polish mathematician (Pawlak, 1982). The model permit to estimate a property without defining an econometric model, although do not give any estimation of marginal or hedonic prices. I : the first version of RST was necessary to organize the data in classes before the valuation .The relationship between these classes defined if‐then rules. If a property belongs to a specific group then it will belong to a class of value. The relationship between the property and the class of value is dichotomous. In this paper will be offered a second version that improve the RST with a “value tolerance relation” in order to make more flexible the rule. In this case the results will come out from an explicit and specific relationship. The methodology has been tested on 69 transactions in the zone of Carrassi‐Poggiofranco in the residential property market of Bari.

First Published Online: 18 Oct 2010

Keyword : Property Valuation, Rough Set Theory, Valued Tolerance Relation