Modern Technologies in the Real Estate Market—Opponents vs. Proponents of Their Use: Does New Category of Value Solve the Problem?

Abstract

The scientific literature and practical studies show that one of the main challenges facing the ongoing development of sustainable real estate markets is the understanding of the specifics of real estate as an object of increasing importance in the global economy. Misinterpretation of the principles of modern valuation models causes conflict between opponents and proponents of their use. To reconcile the two sides, the authors of this study propose the possibility of extending the methodology with new solutions—hybrid automated valuation models—and introducing a new value called the rough value. The study mostly draws on monographic and deductive reasoning methods, which includes an analysis of the basic principles of real estate appraisal (as described by internationally recognized professional standards) and valuation methods. The introduction of proposed solutions to valuation practice should be preceded by the development of unified standards and the principles of their application.