Dataset Information

Real estate listings and their usefulness for hedonic regressions.

ABSTRACT: Real estate platforms provide a new source of data which has already been used as a substitute for transaction data in hedonic regression applications. This paper asks whether it is valid to do so in the established research areas of (1) willingness to pay estimation, (2) automated valuations, and (3) price index construction. It therefore compares listings and transaction data and regression results derived from them. We find that ask prices stochastically dominate sale prices, mainly because the composition of characteristics differs between the two data sets. But estimates of implicit prices also differ. As a result, willingness to pay estimates from listings data can be widely off when compared with estimates from transaction data. Listings data are not very useful to predict market values of individual houses either, as these predictions suffer from upward bias and large error variance. We find, however, that an ask price index complements a sale price index, as it is useful for nowcasting.

Supplementary information

The online version contains supplementary material available at 10.1007/s00181-020-01992-3.

SUBMITTER: Kolbe J

PROVIDER: S-EPMC7805573 | biostudies-literature | 2021 Jan

REPOSITORIES: biostudies-literature

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Real estate listings and their usefulness for hedonic regressions.

Kolbe Jens J Schulz Rainer R Wersing Martin M Werwatz Axel A

Empirical economics 20210113 6

Real estate platforms provide a new source of data which has already been used as a substitute for transaction data in hedonic regression applications. This paper asks whether it is valid to do so in the established research areas of (1) willingness to pay estimation, (2) automated valuations, and (3) price index construction. It therefore compares listings and transaction data and regression results derived from them. We find that ask prices stochastically dominate sale prices, mainly because t ...[more]

PMID: 33462521

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Project description:With the rapid growth of online property rental and sale platforms, the prevalence of fake real estate listings has become a significant concern. These deceptive listings waste time and effort for buyers and sellers and pose potential risks. Therefore, developing effective methods to distinguish genuine from fake listings is crucial. Accurately identifying fake real estate listings is a critical challenge, and clustering analysis can significantly improve this process. While clustering has been widely used to detect fraud in various fields, its application in the real estate domain has been somewhat limited, primarily focused on auctions and property appraisals. This study aims to fill this gap by using clustering to classify properties into fake and genuine listings based on datasets curated by industry experts. This study developed a K-means model to group properties into clusters, clearly distinguishing between fake and genuine listings. To assure the quality of the training data, data pre-processing procedures were performed on the raw dataset. Several techniques were used to determine the optimal value for each parameter of the K-means model. The clusters are determined using the Silhouette coefficient, the Calinski-Harabasz index, and the Davies-Bouldin index. It was found that the value of cluster 2 is the best and the Camberra technique is the best method when compared to overlapping similarity and Jaccard for distance. The clustering results are assessed using two machine learning algorithms: Random Forest and Decision Tree. The observational results have shown that the optimized K-means significantly improves the accuracy of the Random Forest classification model, boosting it by an impressive 96%. Furthermore, this research demonstrates that clustering helps create a balanced dataset containing fake and genuine clusters. This balanced dataset holds promise for future investigations, particularly for deep learning models that require balanced data to perform optimally. This study presents a practical and effective way to identify fake real estate listings by harnessing the power of clustering analysis, ultimately contributing to a more trustworthy and secure real estate market.

Dataset Information

Real estate listings and their usefulness for hedonic regressions.

Supplementary information

Publications

Real estate listings and their usefulness for hedonic regressions.

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