Validation of Basic Valuation Models: A Multi-Family Housing Example

  • May 21, 1992
  • • Written by: Phillip S. Mitchell Gary L. Bernes

Spring/Summer 1992, Vol 17, No 1

Abstract: The authors present a thorough study of 30 apartment complex transactions in the vicinity of Atlanta, Georgia, for the years 1984 through 1988 was undertaken. Statistical techniques were used to test the validity of the simple, direct proportionality models of valuation and expense estimation. The dataset was of unusually good quality and was based on audited income statements.