The appraisal rationalisation of real estate expertise

• Main Authors: Marina Ciuna, Marco Simonotti
• Format: Article
• Language: English
• Published: Agenzia delle Entrate 2013-12-01
• Series: Territorio Italia
• Subjects: market value; assessed value; real estate expertise
• Online Access: http://www.agenziaentrate.gov.it/wps/file/Nsilib/Nsi/Documentazione/Archivio/Agenzia+comunica/Prodotti+editoriali/Territorio+Italia/Archivio+Territorio+Italia+-+English+version/Territorio+Italia+2+2013+english/The+appraisal+rationalisation+of+real+estate+expertise/46-61_Simonotti_ing.pdf
• ISSN: 2240-7707; 2499-2674

The Italian appraisal practice is characterized by valuations developed in subjective opinions formulated by the valuers, according to the experience and the competence rather than on the survey of the market data of comparable properties. This practice makes up for the lack of information on the real estate market and to the consequent absence of systematic collections of market data. This tradition is in the cadastral appraisal for the rural (1886) and urban properties (1939). The assessed income is appraised for a representative property and wide to all the other properties with arbitrary scores (pure number). The assessed value is derived from the income with fixed multipliers. The reform of the cadastral appraisals (2013) provides the employment of predetermined statistic functions rather than the automated valuation models applied in the mass appraisal. There are therefore ample spaces to rationalize the Italian valuations. For the market appraisal the process of rationalization is based on the comparison between the expertise and the market comparison approach. For the cadastral appraisal the process of rationalization is based on the statistic application to the fixed functions with the survey of a sample of market prices and the ratios study according to the valuation standards.