The Accuracy of Long-term Real Estate Valuations

Rainer Schulz, Markus Staiber, Martin Wersing, Axel Werwatz

    Research output: Working paperDiscussion paper


    By using a unique data set of single-family house transactions, we examine the accuracy of the cost and sales comparison approach over different forecast horizons. We find that sales comparison values provide better long-term forecasts than cost values if the economic loss function is symmetric. A weighted average of both sales comparison value and cost value can reduce this loss even further. If the economic loss function is asymmetric, however, cost values might provide better long-term forecasts.
    Original languageEnglish
    PublisherHumboldt-Universität zu Berlin
    Number of pages29
    Publication statusPublished - 2008

    Publication series

    NameSFB 649 Discussion paper


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