The role of model calibration in mass real estate assessment: a case study of the Republic of Moldova

Abstract

The purpose of this article is to highlight the essential role of the calibration stage in mathematical modeling of real estate value for the ad valorem tax system. The analysis of a large-scale valuation project in the Republic of Moldova highlights the need to apply calibration measures to models created by specialized automated programs. Errors and deviations in results obtained from artificial intelligence bring the calibration stage to the primary level to ensure accurate and reliable valuation, reflecting the fundamental dynamics of the real estate market.