Real estate valuation, cognitive risk, and translational research
| DOI | https://doi.org/10.1108/14635781111150303 |
| Published date | 12 July 2011 |
| Pages | 372-383 |
| Date | 12 July 2011 |
| Author | Larry Wofford,Michael Troilo,Andrew Dorchester |
| Subject Matter | Property management & built environment |
Real estate valuation, cognitive
risk, and translational research
Larry Wofford and Michael Troilo
The University of Tulsa, Tulsa, Oklahoma, USA, and
Andrew Dorchester
Cushman & Wakefield Inc., Washington, DC, USA
Abstract
Purpose – This paper seeks to consider selected aspects of the relationship between real estate
valuation, human cognition, and translational research. Its purpose is to introduce the concept of
cognitive risk, to propose a framework for mitigating it, and to develop a stream of translational
research to transfer knowledge to real estate valuers.
Design/methodology/approach – The paper takes an interdisciplinary conceptual approach towards
the development and study of cognitive risk, and its mitigation. It proposes to broaden the study of
behavioralissues in real estatevaluation beyondcognitive psychologyto cognitive science,and also fields
such as time studies and human failure, in order to identify and mitigate cognitive risk.
Findings – The paper offers a framework as a starting-point for handling cognitive risk. It borrows
the concept of translational research from medicine to discuss how basic theoretical knowledge may be
communicated to real estate valuers to improve performance.
Originality/value – The paper’s concept of cognitive risk and discussion of its mitigation will enrich
behavioral real estate by introducing the wisdom of other fields such as cognitive science and time
studies. These fields have much to say about managing the risk surrounding human cognition, and
will be of both academic and practical value to the discipline of real estate valuation.
Keywords Real estate valuation,Cognitive risk, Translationalresearch, Paradigm, Real estate,
Assets valuation
Paper type Research paper
Corrigendum
The Publishers would like to note the following Corrigendum relating to the article
entitled “Real estate valuation, cognitive risk and translational research” Larry Wofford,
Michael Troilo and Andrew Dorchester, Journal of Property Investment & Finance,
Vol. 29 No. 4/5, 2011, pp. 372-83.
It has been brought to our attention that this article is based on the following,
previously published article: “Managing cognitive risk in real estate”, Larry Wofford,
Michael Troilo and Andrew Dorchester, Journal of Property Research, Vol. 27 No. 3,
2010, pp. 269-87, and contains a significant amount of similar content without
adequate referencing. The Authors and Publishers would like to apologise for this
unintended oversight.
Introduction
Cognition permeates real estate valuation. Buyers, sellers, lenders, and others involved
in real estate activities all must process a vast sea of data in order to develop strategies
and make decisions. Likewise, the valuer working to analyze a market segment or a
particular property must process a significant volume of data that is often incomplete,
inaccurate, noisy, varied, and/or changing over time. Real estate valuation is not alone
in taking place in a complex, dynamic, and uncertain environment; research on the
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
JPIF
29,4/5
372
Received December 2010
Accepted March 2011
Journal of Property Investment &
Finance
Vol. 29 No. 4/5, 2011
pp. 372-383
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635781111150303
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