The Need for New Methodological Proposals for Home Valuations

Authors

  • Joaquín Catalá Alís
  • José Vicente Ferrando Corell
  • Felipe Antonio de Lama Santos

Keywords:

Housing valuation, value qualities, socioeconomic level, housing bubble

Abstract

Spain has a deep-rooted tradition of home ownership (82.7%), and buying has a significant
quantitative effect on budgeting the family/home-sharing economy, as in many cases homes are
acquired with funds from external sources, via mortgages.
Housing was overvalued over the period between 2003 and 2008, as a result of the property bubble.
This has led the professionals involved in this sector to reflect upon such questions as what the
value qualities to be taken into account are, whether people have being paying more for their homes
than they are worth, whether the overvaluation of property has been detected by valuation methods,
and the extent to which home-buying decisions are informed by available income levels.
With a view to considering the need for new valuation methodologies if we are to avoid repeating past
mistakes, the direct views of 53 experts in the sector have been sought by using the Delphi method,
comparing the value supported by many authors and researchers with standard professional practice.
The conclusions of the study reveal that the comparison method that is used by practically all
professionals (92.5%) was unable to detect the overvaluation of housing in time, making it
necessary for new valuation methodologies to be looked into, parametrising the value qualities
described by the experts and subsequently applying the calculation equations, based on the
following research area: the influence of socio-economic level in determining the value of housing.

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Published

2016-09-20

How to Cite

Catalá Alís, J., Ferrando Corell, J. V., & Lama Santos, F. A. de. (2016). The Need for New Methodological Proposals for Home Valuations. Ciudad Y Territorio Estudios Territoriales, 48(189), 419–436. Retrieved from https://recyt.fecyt.es/index.php/CyTET/article/view/76491

Issue

Vol. XLVIII, núm. 189 (2016)

Section

Articles

License

Copyright (c) 2016 Joaquín Catalá Alís, José Vicente Ferrando Corell, Felipe Antonio de Lama Santos

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