An Exploration of Neural Networks and Its Application to Real Estate Valuation
Elaine Worzala, Margarita Maria Lenk, Ana Silva · Journal of Real Estate Research · 1995
This research applies neural network (NN) technology to real estate appraisal and compares the performance of two NN models in estimating the sales price of residential properties with a traditional multiple regression model. The study is based on 288 sales of homes in Fort Collins, Colorado. Results do not support previous findings that NNs are a superior tool for appraisal analysis. Furthermore, significant problems were encountered with the NN models: inconsistent results between packages, inconsistent results between runs of the same package and long run times. Any appraiser who plans on using this new technology should do so with caution.