Geospatial Analysis for Real Estate Valuation Models
Susan Wachter (Wharton School, USA), Michelle M. Thompson (Lincoln Institute of Land Policy, USA) and Kevin C. Gillen (Wharton School, USA)
Copyright: © 2005
This chapter provides an overview of a major contemporary issue in real estate valuation — the use of geographical data to improve valuation outcomes. The spatial nature of real estate data allow the development of specialized models that increase the likelihood for better predictions. This chapter examines how using spatial data, with geographical information systems (GIS), can improve the accuracy of real estate valuation models. Contemporary theory in economics, planning, housing, and appraisal influences the model application that underlies the new field of GIScience and the use of Automated Valuation Models (AVMs) in practice. Exploratory methods of model development are also considered in the presentation of a case study along with a discussion of the changing history, development and future of AVMs and GIS.