In appraising the “valore di trasformazione” the valuation error is composed by the error on market value and the error on construction cost. In appraising the “valore complementare” the valuation error is composed by the error on market value of complex real property and on market value of the residual part. The final error is a function of the partial errors and it can be studied using estimative and market ratios. The application of the compounds values to real estate appraisal misleads unacceptable errors if carried out with the expertise.
Ciuna, M. (2012). The valuation error in the compound values. In XLI Meetings Proceedings (Rome). Appraisals. Evolving proceedings in global change.
The valuation error in the compound values
CIUNA, Marina
2012-01-01
Abstract
In appraising the “valore di trasformazione” the valuation error is composed by the error on market value and the error on construction cost. In appraising the “valore complementare” the valuation error is composed by the error on market value of complex real property and on market value of the residual part. The final error is a function of the partial errors and it can be studied using estimative and market ratios. The application of the compounds values to real estate appraisal misleads unacceptable errors if carried out with the expertise.
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