A taxonomic field investigation into induced bias in residential real estate appraisals

Paper Details

Authors:

DOI: 10.3846/ijspm.2010.02

Journal: International Journal of Strategic Property Management

Year: 2010

Publisher:

Document Type: Article

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 17

Abstract

A taxonomic approach to field research was developed and utilized to support empirical and experimental research findings into the impact that incentives/pressures to over-value have on systematic valuation bias. An expected no-bias population was defined and valuation judgments from actual, real-world appraisals were statistically tested against it. The judgments of appraisers presented with no incentive/pressure to over-value were consistent with the no-bias population, while the judgments of appraisers presented with incentive/pressure to over-value were significantly incompatible with the defined no bias population. © 2010 Vilnius Gediminas Technical University.

Keywords

Client-agent impacts; Default risk; Liquidity crisis of 2008; Mortgage lending; Real estate appraisal; Valuation judgment

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