The Analytical Foundations of Adjustment Grid Methods
Publication Type
Journal Article
Publication Date
1983
Abstract
Within the market data approach to real estate appraisal, two basic types of analysis generally are used: (1) regression analysis; and (2) adjustment grid methods. The focus of this paper is on the adjustment grid methods. Three such methods are identified in the appraisal literature, but their analytical foundations are not clearly presented. The primary objective of this paper is to clarify the analytical foundations of each method. In addition, various ways to estimate the adjustment factors needed to apply the grid methods and a weighting scheme for reconciliation of indicated values are presented. Also, the possible advantage of grid-based over purely regression-based predictions is identified.
Discipline
Business
Research Areas
Finance
Publication
Journal of the American Real Estate and Urban Economics Association
Volume
11
Issue
1
First Page
11
Last Page
29
ISSN
0270-0484
Identifier
10.1111/1540-6229.00277
Citation
WU, Chunchi; Colwell, Peter; and Cannaday, Roger.
The Analytical Foundations of Adjustment Grid Methods. (1983). Journal of the American Real Estate and Urban Economics Association. 11, (1), 11-29.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/826