# RECORD 9227a7e5ee91510694ed7aa9358e1709d0798b32
# TITLE: A comparison between mra and rough set theory for mass appraisal. A case in bari
# YEAR: 2004.0  VENUE: nan  DOI: 10.3846/1648715x.2004.9637518
# AUTHORS: M. D'Amato
# PAGES: 13  CANDIDATE TABLE PAGES (1-based): []
# ABSTRACT: Rough Set Theory is a property valuation methodology recently applied to property market data (d'Amato, 2002). This methodology may be applied in property market where few market data are available or where econometric analysis may be difficult or unreliable. This methodology was introduced by a polish mathematician (Pawlak, 1982). The model permit to estimate a property without defining an econometric model, although do not give any estimation of marginal or hedonic prices. I : ,he first version of RST was necessary to organize the data in classes before the valuation .The relationship between these classes defined if‐then rules. If a property belongs to a specific group then it will belong to a class of value. The relationship between the property and the class of value is dichotomous. In this paper will be offered a second version that improve the RST with a “value tolerance relation” in order to make more flexible the rule. In this case the results will come out from an explicit and specific relationship. The methodology has been tested on 69 transactions in the zone of Carrassi‐Poggiofranco in the residential property market of Bari.


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International Journal of Strategic Property Management (2004) 8, 205-217 
A COMPARISON BETWEEN MRA AND ROUGH SET THEORY FOR MASS 
APPRAISAL. A CASE IN BARI 
Maurizio d'AMATO 
1st School of Engineering, The University Polytechnic of Bari, 272, Calefati Street, 70122, Bari - Italy 
tel. +39 80 5216009     mobile   +39 340 2291722 
E-mail: madamato@interfree.it; website: www.damato.has.it; website:www.noaves.com 
Received 9 September 2004; accepted 9 November 2004 
ABSTRACT. Rough Set Theory is a property valuation methodology recently applied to property market data 
(d'Amato, 2002). This methodology may be applied in property market where few market data are available or 
where econometric analysis may be difficult or unreliable. This methodology was introduced by a polish 
mathematician (Pawlak, 1982). The model permit to estimate a property without defining an econometric model, 
although do not give any estimation of marginal or hedonic prices. I : ,he first version of RST was necessary to 
organize the data in classes before the valuation .The relationship between these classes defined if-then rules. If 
a property belongs to a specific group then it will belong to a class of value. The relationship between the 
property and the class of value is dichotomous. In this paper will be offered a second version that improve the 
RST with a "value tolerance relation" in order to make more flexible the rule. In this case the results will come 
out from an explicit and specific relationship. The methodology has been tested on 69 transactions in the zone of 
Carrassi-Poggiofranco in the residential property market of 
Bari. 
KEYWORDS: Property Valuation; Rough Set Theory; Valued Tolerance Relation 
1. INTRODUCTION 
Mass appraisal is the systematic appraisal of 
groups of properties at a given date using 
standardized procedures and statistical testing. In the 
property market econometric modelling tries to 
replicate 
the 
market 
behaviour 
through 
a 
representative model. In particular hedonic price 
modelling looks for an econometric relationship 
between the price and the property characteristics. 
This methodology (Griliches, 1971; Rosen, 1974) is 
based on demand side analysis in a static framework. 
For this reason statistic data analysis has theoretical 
weakness (Lentz and Wang, 1998) and may be not 
efficient in those markets where the uncertainty is 
high because of the unreliability of 
information sources. In these cases the relationship 
between the dependent variable normally the 
property price and the independent variables or 
property characteristics may not be econometrically 
modelled. In some property markets the price 
dynamic could be described through non-monotonic 
processes, therefore alternative "heretic approaches" 
(Kauko and d'Amato, 2004) approaches have been 
proposed 
as 
neural 
network 
(Borst, 
1992; 
McCluskey et al, 1997; Rossini, 1997; Nguyen N. et 
al., 2001) or AHP (Kauko, 2002). In this group 
Rough Set Theory has been applied for the first time 
(d'Amato, 2002) to a small sample of residential 
property transactions in the real estate market of 
Bari. In the first application of RST the final output 
was a if-then rule that indi- 
International Journal of Strategic Property Management 
ISSN  1648-715X 
http://www.vtu.lt/english/editions