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| An Exploration of Neural Networks and
Its Application to Real Estate Valuation Author: Elaine M. Worzala, Margarita Lenk, and Ana Silva Start Page: 185 Abstract: 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 would do
so with caution. |
