A wall between real estate valuation standards and professional appraisal practice: A focus on Italian market

Martina Agosta ,Emanuele Schimmenti ,Caterina Patrizia Di Franco ,Antonio Asciuto

doi:10.24294/jipd.v8i10.7245

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A wall between real estate valuation standards and professional appraisal practice: A focus on Italian market

Martina Agosta

Emanuele Schimmenti

Caterina Patrizia Di Franco

Antonio Asciuto

Journal of Infrastructure Policy and Development 2024, 8(10), 7245; https://doi.org/10.24294/jipd.v8i10.7245

Submitted：19 Jun 2024

Accepted：01 Aug 2024

Published：30 Sept 2024

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Abstract

Real estate appraisal standards provide guidelines for the preparation of reliable valuations. These standards emphasize the central role of market data collection in market-oriented valuation methodologies such as the Market Comparison Approach (MCA), which is the most commonly used. The objective of this study is to highlight the difficulties in data finding, as well as the gap between the standards and the actual appraisal practices in Italy. Thus, a detailed comparison was made between the real estate data considered necessary by the standards and those ones reasonably detectable by appraisers, showing that some important market information is not reachable due to legal, technical and economic factors. Finally, a case study is presented in which the actual appraisal of a residential property is schematically described to support what is claimed with the research question and thus the degree of uncertainty around an estimate judgment.

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References

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