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An Analysis of the Appraisers’Recognition and Behavior on the Appraisal Smoothing Bias

  • Korea Real Estate Review
  • 2011, 21(1), pp.171-191
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

Ahn, Dong Joon 1 Suk-Chan Ko 2

1대일감정원 본사
2단국대학교

Accredited

ABSTRACT

This study aims to analyze the recognition and behavior of appraisers towards the appraisal smoothing bias included in the office price index. Based on the questionnaire survey data, the study finds that the majority of appraisers do recognize the existence of the appraisal smoothing bias in the process of evaluating office prices based on the index provided by the Ministry of Land Transport and Marine Affairs. The survey results also indicate that 38% of respondents acknowledge the existence of appraisal smoothing bias, and the appraisers who acknowledge more appraisal smoothing bias theories tend to accept the fact that they are affected by the results of their previous appraisal. Although the survey respondents do not want to change the current appraisal process, but they agree on the need to correct the appraisal biases incrementally.

Citation status

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