Intuitive Methods Versus Analytical Methods in Real Estate Valuation: Preferences of Polish Real Estate Appraisers

Abstract

Market analysis is one of the basic and essential stages in the process of estimating the market value of real property. In this context, both the legal provisions in force in Poland and the methodological guidelines contained in the valuation standards leave appraisers with considerable flexibility in the use of specific methods. The research referred to only that part of the market analysis which focuses on a dependency study and ultimately aimed at determining materiality and subsequently the magnitude of the impact of market characteristics on the differentiation of transaction prices. The chapter analyzes the methods used by Polish real estate appraisers and the context of using the conclusions resulting from the analyses. The study provided the response on the appraisers’ preference for valuation approaches and methods. On the basis of the conclusions of the study, a critical assessment of the causes influencing the range of applied analytical tools identified was also carried out. In summary, on the basis of the collected results, recommendations regarding possible changes to legal regulations and professional norms relating to the studied area of professional activity were presented.