Property Management

Neighborhood amenity packages, property price, and marketing time : Table of Contents

Justin D. Benefield — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of the study is to introduce modeling of common neighborhood amenities as packages, rather than as separate independent variables in a single model. Results from the standard modeling technique of including separate controls for each amenity are provided for comparison. A secondary purpose is to provide price and time-on-market implications for amenities in seasoned versus newly constructed properties. Design/methodology/approach – Common neighborhood amenities are grouped according to the total amenity bundle offered by each neighborhood. Hedonic pricing, hazard modeling, and two-stage least squares regression are used to estimate price and time-on-market impacts for six common amenities. Findings – Neighborhood tennis courts, clubhouses, boating facilities, and golf courses, as well as several amenity packages, significantly impact property values. Valuation of particular amenity packages differs between newly constructed and seasoned homes. Time-on-market results are less convincing. Research limitations/implications – Neighborhood amenities considered separately can produce misleading results, so amenity packages should be included in future research. Specific numerical results would not apply to other markets and perhaps not to other time periods. Practical implications – The study offers evidence regarding which neighborhood amenities are valued most highly in newly constructed properties, which is of interest to developers. The study also offers evidence on which amenities are valued more highly in seasoned properties, which is of interest to buyers due to concerns about re-sale values. Originality/value – The study offers the first grouping of neighborhood amenities into packages to more closely resemble the way buyers consider amenities during the purchase decision. The study is also the first comprehensive survey of commonly-offered neighborhood amenities.

Weight regression model from the sales comparison approach : Table of Contents

Shih-MingYou, Chin-oh Chang — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to construct a weight model from the sales comparison approach. Design/methodology/approach – Although weighted average of comparables into sales comparison value is commonly applied in the past, most papers only focus mathematical calculation. This paper examines the correlation between weight and attributes of 6,345 sales comparable properties adopting the multiple regression model. Findings – This paper finds the price type, proximity of transaction date, inside the neighborhood area or not, total gross adjustment as percent, numbers of adjustments and the attributes of other comparables considered in one appraisal are significant on the weight of comparables. The expected MAPE and Hit rate criterions are passed after forecasting 10 percent validation samples modeled by 90 percent samples randomly surveyed. Practical implications – The weighted average to determine the sales comparison value is reasonable since the value conclusion will “correlate” to indication of value derived by different comparables. Originality/value – This paper discusses the weight model and forecasts weights directly instead of only forecasting value. By elaborating on the core question of weights, this paper hopes to assist the degree of science and objectivity of appraisal.

Calculating the cost of overheads: the real impact of HVOTLs on house price : Table of Contents

Sally Sims, Peter Dent, Gina Ennis-Reynolds — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to establish whether or not asking price can provide a reliable indication of the impact of a negative externality when transaction data are scarce. Design/methodology/approach – Until recently, transaction data within the UK were either unobtainable or expensive. Subsequently, an analysis of the value impacts of living near negative externalities (such as high voltage overhead power lines (HVOTL)) relies almost entirely on valuer expertise. Since behavioural research suggests that valuers often anchor to asking price which, in theory, is based on the selling agent's opinion of the likely transaction value of a property, the argument is made that “asking price” provides a reliable indication of the impact of a negative externality when transaction data are scarce. This theory is tested through an analysis of the real versus perceived impacts of an HVOTL on proximate house prices. Findings – The results, whilst providing additional evidence to support the relationship between value diminution and the presence of an HVOTL near residential homes, suggest that agents' marketing price does not capture the true impact of this type of negative externality and should therefore be treated with caution by practitioners seeking to establish the value of this type of property. Originality/value – The results of this article add additional evidence to support the findings from previous studies in this field.

Green roof retrofit potential in the central business district : Table of Contents

Sara J. Wilkinson, Richard Reed — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to illustrate the potential for green roof retrofit to commercial buildings in a city centre to property managers and other property professionals. Design/methodology/approach – This paper addresses the research question: what is the potential of existing buildings in the CBD to accommodate a retrofitted green roof? Furthermore, it questions how many buildings are suitable for green roofs? The researchers compile a unique building database incorporating information about 536 commercial buidings and evaluate the potential suitability of each building to undergo a green roof retrofit. Assisted by other commercially available databases and software, the researchers are able to assess each roof based on criteria derived from an extensive literature review. Findings – A relatively small proportion of roofs are found to be suitable, partly a result of local climate conditions and rainfall patterns, and the physical property stock. On a purely physical assessment, only a very small proportion of CBD stock is found to be suited. These buildings are most likely to be in low secondary locations, ungraded or B grade buildings, privately owned, concrete framed and not overshadowed by adjoining properties. Practical implications – Property managers and other property professionals can now determine the potential of their portfolio stock for green roof retrofit based on the review of building attributes required for success adaptation in this paper. It possible that greater potential for green roof retrofit exists in the suburbs or regional towns where lower rise buildings may reduce the amount of overshadowing found in city centres. Follow-up research could focus on a comparison of regional and suburban developments. Originality/value – This is the first study of its kind and has assessed such a large number of buildings for their suitability for green roof retrofit; the findings provide a reliable guide for policymakers regarding the potential number of city centre buildings which would be possible to retrofit. Such findings should influence policymaking and incentives to target effective sustainability policies with regards to existing buildings.