Housing Heterogeneity and Nebulosity of the Valuation Standard: Problems and Solutions

Riga Technical University 58th International Scientific Conference “Scientific Conference on Economics and Entrepreneurship” (SCEE’2017): Proceedings 2017
Jānis Vanags, Helma Jirgena, Didzis Usenieks, Auseklis Sarkans

The significance of the research is determined by the unconformity of the content of the housing market system and its basic elements with the standard of appraisal of housing and its practical application. The results of the research show that the International Valuation Standard and European Valuation Standard does not cover all dimensions of the heterogeneity of housing and other kinds of a real estate. These Standards are saturated with qualitative elements in the explanation of various concepts, which are subjective perceptible and explainable. The existence of subjective elements in determining the procedure of valuation and in the conditions of the revelation of the results of the evaluation opens up comparative wide opportunities for manipulation with the situation in the procedure of the valuation. Such weaknesses of the Valuation standards contributes for the intensification of information asymmetries between different groups of the real estate market participants and increases the difference between the estimated market value of housing and its real value as well.

Keywords
housing heterogeneity; valuation standard; unconformity; information asymmetry.

Vanags, J., Jirgena, H., Usenieks, D., Sarkans, A. Housing Heterogeneity and Nebulosity of the Valuation Standard: Problems and Solutions. In: Riga Technical University 58th International Scientific Conference “Scientific Conference on Economics and Entrepreneurship” (SCEE’2017): Proceedings, Latvia, Riga, 13-14 October, 2017. Riga: Riga Technical University, 2017, pp.51-52. ISBN 978-9934-22-000-5. ISSN 2256-0866.

Publication language
English (en)