Abstract:
A new approach to the real estate appraisal is considered. In contrast to traditional approach to mass appraisal that uses a single model for objects assessment, the new approach proposed uses several models. Objects to be estimated are primarily classified and the objects of each class are assessed with use of corresponding model. The new approach significantly increases the credibility of resulting estimates. The practical example is presented.
Keywords:mass appraisal, regression model with continuous (or categorical) dependent variable, classification algorithm, dispersion analysis, Fisher's linear discriminant analysis.