Brief Session Description
Depreciation rate is usually underestimated in hedonic house price models, primarily because it is difficult to capture the effect of maintenance to house price appreciation. This session illustrates a new nonlinear repeat sales model concept that distinguishes quality–adjusted house price inflation, age effect and vintage effect to obtain accurate in–house sales–based depreciation rates.
Presentation Category
Real Property Valuation Agricultural, Commercial/Industrial and Residential
Audience Expertise
General Interest (Appropriate for all experience levels.)
Start Date
8-29-2016 4:00 PM
End Date
8-29-2016 5:00 PM
Repeat Sales Model Depreciation Estimation
Depreciation rate is usually underestimated in hedonic house price models, primarily because it is difficult to capture the effect of maintenance to house price appreciation. This session illustrates a new nonlinear repeat sales model concept that distinguishes quality–adjusted house price inflation, age effect and vintage effect to obtain accurate in–house sales–based depreciation rates.
