Appraisal Smoothing and Price Discovery in Real Estate Markets.
This paper reviews the literature on price determination in the private and public real estate markets. In particular, it discusses the processes of appraisal smoothing in the private market and of price discovery between the public and the private markets. In real estate markets, the absence of goo...
| Published in: | Urban Studies (Routledge) Vol. 40; no. 5/6; pp. 1047 - 1065 |
|---|---|
| Main Authors: | , , |
| Format: | Article |
| Published: |
Taylor & Francis Ltd
May2003
|
| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=9756568&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 9756568 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00420980 UST jtl: Urban Studies (Routledge) issn: 00420980 maglogo: Y pubinfo: dt: May2003 vid: 40 iid: 5/6 pid: 377 pub: Taylor & Francis Ltd artinfo: ui: 9756568 10.1080/0042098032000074317 ppf: 1047 ppct: 18 formats: fmt: @attributes: type: P size: 143KB tig: atl: Appraisal Smoothing and Price Discovery in Real Estate Markets. aug: au: Geltner, David MacGregor, Bryan D. Schwann, Gregory M. su: Real property sales & prices Valuation sug: subj: Real property sales & prices Valuation ab: This paper reviews the literature on price determination in the private and public real estate markets. In particular, it discusses the processes of appraisal smoothing in the private market and of price discovery between the public and the private markets. In real estate markets, the absence of good quality information on price, whether because of lack of trades or confidentiality, has led to the widespread use of appraisals for market tracking and as the basis for performance measurement. Appraisers have to make an optimum assessment of value, based on fundamental variables and market information, including transactions and a market-wide appraisal index. However, transaction prices are a noisy signal and it is the appraiser's role to extract the signal from the noise in an efficient manner. This involves a process of optimal combination of past and current information and leads to appraisal smoothing. Price discovery is the process by which the opinions of market participants about the value of an asset are combined together into a single statistic--its market price. A development of this basic concept is where two markets have a common component of value and the relevant price information is discovered first in one market and then transmitted to the second market. The process of price discovery is considered between the public and private real estate markets. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Urban Studies (Routledge) is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Urban Studies (Routledge) holder: Taylor & Francis Ltd dt: @attributes: year: 2003 holdings: @attributes: islocal: N |
|---|