Appraising property with rough set theory

Publication Date01 August 2002
DOIhttps://doi.org/10.1108/14635780210435074
Pages406-418
AuthorMaurizio d’Amato
SubjectProperty management & built environment
JPIF
20,4
406
JournalofPropertyInvestment&
Finance,Vol.20No.4,2002,
pp.406-418.#MCBUPLimited,
1463-578X
DOI10.1108/14635780210435074
ACADEMICPAPERS
Appraisingpropertywith
roughsettheory
Mauriziod'Amato
1stSchoolofEngineering,TheUniversityPolytechnicofBari,Bari,Italy
KeywordsProperty,Valuation,Theory,Statistics
AbstractThisresearchisfocusedonamethodologycreatedtoanalyseimpreciseinformation,
thatisfullofattributesdefinedas``roughset''.Themethodologywillbethenappliedtothereal
estateappraisalquestion,representingafurtherpossiblemethodofevaluation.Uptonowthe
mainapproachestotherealestateappraisalhavebeenincome,marketandcost.Myintentionis
toanalysethistheoryshowingapracticalapplicationonagroupofrealestatetransactionsmade
byarealestateagent.Thisapplicationwillshowhowitispossibletogetvaluestoclassifyareal
estate.Acomparisonbetweenthismethodandthemostcommonstatisticsinstrumentswill
behighlighted.
Introduction
Themainapproachestopropertyvaluationarecost,incomeandmarket.This
papershowshowstartingfromthemarketdataitispossibletodefinea
propertyvaluewithoutnecessaryreferringtoamathematicalmodel.In
particulartheaimofthispaperistoshowhowallthatispossible,byusing
anotherprocedurethatisdifferentfromthemultipleregression.
Theproposedprocedureiscalled``roughsettheory''(RST)anditallowsto
estimaterealestatesstartingfromtheknowledgeofthedataandfromtheir
organisationwithoutcreatinganyinterpretativemodel.
TheRSThasbeenappliedtoseveralfields,butforthefirsttimewewill
applythismethodbasedonthistheorytotherealestatefield(LinandCercone,
1997;Orlowska,1997;PalandSkowron,1999;Polkowskietal.,2000;Zonget
al.,1999).
Thepaperisdevelopedasfollows:thefollowingparagraphcontainsabrief
outlineandageneralintroductiontothistechnique.Thesecondparagraph
showsanapplicationofthismethodtotheresidentialrealestatemarketin
Bari,asouthernItaliantown.Thelastparagraphpresentssomefinalremarks
andsuggestsfuturedirectionsfortheresearch.
RST:abrief outline
Thestatisticdataanalysiscanshowsomelimitsinthosefieldswherethe
uncertaintyishigh,ornon-monotonicprocesseshavetobedescribed.Atother
timestherearefewavailabledatadependingonseveralattributes.Arule-
basedapproachtosolvetheseproblemshasbeendevelopedbyZdzislaw
Pawlakandhiscolleaguesintwofamouspapers(Pawlak,1982,1991).The
originalideabehindhistheoryisthisstatement:
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