The use of fuzzy logic for real estate assessment and applications

Abstract

This paper presents a method of decision support for assessment of real estate with the use of fuzzy logic, in the form of soft decision tree. Examples are presented of assessments of one urban apartment and of six rural properties. The method starts with a draw of schematic representation of a top-down decision tree. The tree structure begins by the central issue of the adjustment of property value, within the field defined by the comparative market data method. The basic criteria are the physical, social and economic indicators. The inputs and outputs sheets were implemented in Excel^® and the programming of aggregation of variables by fuzzyTech^® software. The method extends the transparency in the evaluations of properties, enabling non-specialists, social workers and professionals working in the area for better understanding and deciding on the formation of values in the real estate market, turning easier to view the relative importance of variables, their aggregation and providing an indication of reliable reference value of the property.