Case-based Reasoning and Neural Networks for Real Estate Valuation

W.Z. Taffese (Finland)

Keywords

Real Estate Valuation, CaseBased Reasoning, Neural Networks, Hybrid Intelligent Systems

Abstract

This paper presents an overview of two Artificial Intelligent (AI) systems, Case-Based Reasoning (CBR) and Neural Network (NN), in terms of its underlying foundation, its current state-of-the-art, and future trends in real estate industry. The use of AI systems for real estate valuation is becoming a better alternative compared to the traditional Multiple Regression Analysis (MRA). Even if there are a number of AI systems, CBR and NN are the ones presently applied for real estate valuation. Thus this paper presents the current trends of CBR and NN in real estate valuation. In addition, prediction capability of NN is analyzed compared to MRA. Furthermore, the benefits of integrating two AI systems for efficient real estate valuation are presented. This integration mitigates the limitations and takes advantage of the opportunities to produce systems that are more powerful than those that could be built with single intelligent systems. Therefore using hybrid intelligent systems for efficient and most accurate real estate valuation is proposed.

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