Mass appraisal of urban land with homogenization factors: a spatial models-based approach

Abstract

This study uses spatial econometrics techniqueReal estate mass appraisals within Fortaleza's municipality to address the real estate mass appraisal of urban lands. It utilizes spatial weight matrices, Lagrange multiplier tests, and spatial regression models to comprehend and model the spatial structure of land prices. The findings highlight the critical role of careful selection of spatial weight matrices in reducing residual autocorrelation and enhancing estimation accuracy. Moreover, employing homogenization factors based on a paradigm lot proved effective in adjusting land prices, aiding in more equitable taxation, and reflecting price variations due to locational factors. The study's specific objectives include evaluating the influence of spatial weight matrices' choice, analyzing the effectiveness of spatial models in capturing spatial dependence, and investigating the impact of price homogenization. The study also outlines methodological limitations such as reliance on georeferenced data and the assumption that land attributes uniformly impact prices across different city areas.