Published 2026-06-28
Keywords
- International Valuation Standard (IVS),
- Real Estate Appraisal,
- Valuation Models
Copyright (c) 2025 Tiziano Tempesta
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
The 2008 subprime mortgage crisis that deeply affected the entire international financial system highlighted the close interdependence between securities and real estate markets. This led to the need for evaluation methods for assets given as collateral for bank mortgages that were as objective and reliable as possible.
Starting in 2008, the International Valuation Standards Council defined common criteria to be adopted internationally for real estate valuations. These criteria were adopted in Italy by the Italian Property Valuation Standard (Tecnoborsa, 2018).
Despite the numerous market value estimation models developed by appraisal disciplines based on price comparison, the Italian Property Valuation Standard essentially considers only the so-called Market Comparison Approach (MCA) to be reliable.
The analysis carried out has highlighted that the MCA contains some relevant methodological and theoretical errors.
Moreover, it emerged that, especially for farmland, the MCA is substantially similar to other price comparison-based estimation models. The paper also suggests some modifications that can improve the accuracy and reliability of the MCA.