Aspects of Commercial Property Valuation and Regressed DCF

Real-Estate Appraisal is an important professional activity with consequences for economic and financial stability of the economic system. e increasing importance of sustainability in building construction and management has practical and professional consequence in valuation activity (Lorenz and Lutzkendorf, 2008). Assumptions and inputs that influence real-estate valuation may be greatly conditioned by sustainability. Nonagency mortgage crisis demonstrated the importance of real-estate valuation activity. According to Basel II agreement and EU Directive 2006/48/CE, banks should provide periodic automatic valuation to appraise properties, who guarantee the Q14 mortgage-lending process. In the valuation activity for mortgage-lending purposes, statistical and mathematical modeling is used in combination with valuation Appraisal of Real Estate created a difference between the estimate of value as the final output of an automated valuation model and the opinion of value considered the final output on an “in person” valuation