Real estate valuation: an SEM modelling approach

Jim Freeman, Xin Zhao

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


Hedonic regression has long been popular for estimating property values. Nowadays, however, structural equation modeling (SEM) is increasingly seen as a realistic alternative. The session reports on an SEM analysis of a historical dataset for a large Canadian realtor. A two stage approach was adopted for the modelling, the first stage focusing on internal relationships between houses’ structural characteristics; and the second, on housing values and their determinants. Following on, an innovative second order model was developed enabling advertised list prices to be directly and significantly derived from estimated housing values
Original languageEnglish
Title of host publicationhost publication
Publication statusPublished - Jul 2013
EventThe OR Society: OR55 Annual Conference - Exeter, UK
Duration: 3 Sept 20135 Sept 2013


ConferenceThe OR Society: OR55 Annual Conference
CityExeter, UK


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