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Article: Testing the reliability of contingent valuation in the real estate marketplace.
- Article from:
- Appraisal Journal
- Article date:
- June 22, 2006
- Author:
CopyrightCOPYRIGHT 2006 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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abstract
In recent years, contingent valuation has been suggested as an appropriate fourth approach to value. This article reports on results of market-based testing of the
reliability of contingent valuation in actual situations in which it has been used to predict prices that would be paid for residential real estate. The testing reveals that contingent valuation did not accurately predict real-world prices paid by actual willing and informed buyers and sellers. Therefore, the reliability of contingent valuation as a technique to develop an opinion of the market value, especially in courtroom situations invoking the Daubert test for admissibility of ...