Land value appraisal using statistical methods

Jens Kolbe, Rainer Schulz, Martin Wersing, Axel Werwatz

    Research output: Working paper

    Abstract

    The taxation of property based on market values requires frequent appraisals for a large number of properties. In light of the recent property tax reform discussion in Germany, it has been argued that a value-based tax therefore cannot be implemented at a reasonable cost. In several other countries, however, mass appraisal systems based on statistical methods are used for property tax assessments. In this paper, we show how this could in principle be done in Germany, using transactions data that local surveyor commissions are obliged to collect by law. We discuss the regression techniques for estimating land values from such data and illustrate them by applying them to data from Berlin, Germany. We find that the methods are capable of producing land value estimates that match up well with expert based assessments.
    Original languageEnglish
    PublisherHumboldt-Universität zu Berlin
    Number of pages36
    Publication statusPublished - 28 Jan 2019

    Publication series

    NameFORLand Working Papers
    PublisherDFG Research Unit 2569 FORLand, Humboldt-Universität zu Berlin
    No.2019-007

    Fingerprint

    Land values
    Statistical methods
    Germany
    Property tax
    Taxation
    Tax
    Tax reform
    Market value
    Transaction data
    Costs

    Keywords

    • land value
    • mass appraisal
    • nonparametric regression
    • semiparametric regression

    Cite this

    Kolbe, J., Schulz, R., Wersing, M., & Werwatz, A. (2019). Land value appraisal using statistical methods. (FORLand Working Papers; No. 2019-007). Humboldt-Universität zu Berlin.

    Land value appraisal using statistical methods. / Kolbe, Jens; Schulz, Rainer; Wersing, Martin; Werwatz, Axel.

    Humboldt-Universität zu Berlin, 2019. (FORLand Working Papers; No. 2019-007).

    Research output: Working paper

    Kolbe, J, Schulz, R, Wersing, M & Werwatz, A 2019 'Land value appraisal using statistical methods' FORLand Working Papers, no. 2019-007, Humboldt-Universität zu Berlin.
    Kolbe J, Schulz R, Wersing M, Werwatz A. Land value appraisal using statistical methods. Humboldt-Universität zu Berlin. 2019 Jan 28. (FORLand Working Papers; 2019-007).
    Kolbe, Jens ; Schulz, Rainer ; Wersing, Martin ; Werwatz, Axel. / Land value appraisal using statistical methods. Humboldt-Universität zu Berlin, 2019. (FORLand Working Papers; 2019-007).
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