Market Value of Residential Property Using the Value Methodology: A Combined Approach
Real Estate Valuation and Value Methodology are two consultancy businesses that are similar in name. Both fields have a several decade-long long history, are subject to strict regulations and standards and have their practitioners integrated into prestigious professional organizations. That said, it is very difficult to identify any professional relationship between the two consultancy businesses, given the little overlap between the approaches used. To date, property consultants are yet to use the versatile toolkit of VM.
This article presents a model that combines the hedonic analysis of Real Estate Valuation with the function analysis methods elaborated within VM. Previously resting on a strictly empirical basis, the hedonic model can thus incorporate a value driver vector constructed against end-user criteria, resulting in a more accurate methodology for the establishment of value. The approach described in this article can also be used for a more detailed analysis of other types of property. This article is is an extended version of a conference paper presented at Creative Construction Conference 2019 (Hajnal, 2019).