APPLICATION OF ATTRIBUTE ANALYSIS MODEL TO REAL ESTATE DECISION MAKING

Abstract

Presently, the use of quantitative methods in real estate decision-making is confined mainly to cash-flow techniques. This study attempts to introduce another technique which decision-makers can apply in determining the viability of a project in terms of the credit standings of their competitors or partners. Refinement of credit analysis methods is done for the purpose of measuring the amount of risks in a real estate decision. This is achieved by the use of the attribute analysis model. The scoring of the model is done through the allocation of points to the 3 attribute groups - customer, priority and financial. The survey conducted shows that equal emphases are placed on customer and priority attributes in addition to the customary financial figures that traditional credit analysis methods rely on. This is clearly reflective of the property market where, for example, decisions on transactions are based on many other factors besides the price offered. The model also presents a systematic and objective approach to analyse the attributes. The use of intuition as well as facts and figures are combined to produce an unique answer to aid in decision-making.