Real estate valuation methods: An application of hedonic price model

Real estate sector has an important place in the world, it continues to exist as a major part of every economy where development and growth take place. In all areas based on real estate, the most important element is the value of real estate, especially in investment vehicles. Reliable and real value estimation in real estate valuation is possible by using the right approach or approaches in the valuation process. Hedonic price model is one of the most frequently used alternative approaches that provide us high reliability, relatively low error and accurate results. The hedonic price model advocates that the price of real estate consists of the sum of the factors that make up it. Environmental factors affect the value of real estate as well as physical factors. In the higher license study, the factors that affect the housing price have been tried to be determined by Hedonic Price Model with the example of Görükle satellite city located in Nilüfer district of Bursa. In the study, the data obtained through face-to-face interviews with sales professionals operating in the real estate offices in the region were analyzed first with SPSS 15.0 and then with E-Views 5 program. As a result of the study, it was found that environmental factors affect the value at least as much as physical factors. Keywords: Hedonic Price Model, Real Estate Appraisal, Housing, Real Estate Appraisal Methods