Spatial ratio studies for automated valuation modelling

Real estate assessment is a spatial process. This is ever more acknowledged with the advent of spatial automated valuation modelling techniques. In line with this development, attempts have been made to “spatialize” quality control such as ratio studies based on the IAAO standard on ratio studies. This presentation will dive deeper into the concepts and techniques behind spatial ratio studies. The presentation will present spatial ratio studies approaches of different levels of complexity, ranging from visualization to analysis. Furthermore, the presentation will contain ways to find clustering effects and clusters in ratio studies, which can be used to specifically deploy resources to improve the quality of the assessments throughout the jurisdiction. The ultimate goal of this presentation is to acknowledge the spatial component of the assessment process and to continue the discussion on spatial quality control.