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

    Fernando A. F. Ferreira  Affiliation
    ; Ronald W. Spahr Affiliation
    ; Mark A. Sunderman Affiliation

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

Keyword : 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
Published in Issue
Dec 14, 2016
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This work is licensed under a Creative Commons Attribution 4.0 International License.