The Mass Appraisal Tool: Application of a Pluri-Parametric Model for the Appraisal of Real Properties

Over the past few years, mass appraisals have been the center of attention within the national and international real-estate valuation context. The reason for this growing interest is mainly due to the increasing relevance of real estate within the global economy and the need for assessment tools that can support asset management and enhancement strategies at a decision-making level. Many owners have expressed a need for such valuation tools: lending institutions, real estate funds, insurance companies, and managers of public assets (municipalities, etc.). Because of those new valuation needs and the difficulty involved in applying existing models, a new appraisal model is proposed here; a pluri-parametric one that would allow rapid assessment of a large real-estate portfolio in various real-estate market segments. The model was tested on three large real-estate portfolios: TQP property assets (Pension benefits of the staff of Bank of Italy): the Bank of Italy’s district in L’Aquila (Italy); and a portion of Piedmont’s ASL/ASO’s assets.