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The Modified Comparable Sales Method as the Basis for a Property Tax Valuations System and its Relationship and Comparison to Spatially Autoregressive Valuation Models

Biomedical Sciences Research Institute Computer Science Research Institute Environmental Sciences Research Institute Nanotechnology & Advanced Materials Research Institute

Borst, Richard A. and McCluskey, William (2008) The Modified Comparable Sales Method as the Basis for a Property Tax Valuations System and its Relationship and Comparison to Spatially Autoregressive Valuation Models. In: Mass Appraisal Methods: An International Perspective for Property Valuers. (Eds: Kauko, Tom and d'Amato, Maurizio), Blackwell Publishing Ltd, pp. 49-69. ISBN 1-4051-8097-8 [Book section]

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URL: http://media.wiley.com/product_data/excerpt/78/14051809/1405180978-1.pdf

Abstract

The Comparable Sales Method of Valuation (CSM) is widely used in the United States for valuing residential properties. There is an identifiable relationship between CSM as practiced by mass appraisers and the recent developments in spatially aware valuation models. A modified CSM (MCSM) is shown to be a special case of a spatially lagged weight matrix model. There is a less formal but clear relationship with Geographically Weighted Regression as well. The predictive accuracy of the CSM and MCSM are compared to several Ordinary Least Squares Model configurations, and results obtained from Geographically Weighted Regression via empirical studies on diverse datasets. An example of a comparable sales weighting scheme as practiced by mass appraisers is provided. In addition, particular interest is focused on how well each method is able to model the spatial variations in property values. This is done by examining the spatial autocorrelation in residual errors of the predicted values.

Item Type:Book section
Faculties and Schools:Faculty of Art, Design and the Built Environment
Faculty of Art, Design and the Built Environment > School of the Built Environment
Research Institutes and Groups:Built Environment Research Institute
Built Environment Research Institute > Centre for Research on Property and Planning (RPP)
ID Code:10100
Deposited By:Dr William McCluskey
Deposited On:18 Oct 2011 16:00
Last Modified:18 Oct 2011 16:00

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