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Study On Income Property Appraisal Methods

Posted on:2003-08-11Degree:MasterType:Thesis
Country:ChinaCandidate:Y WangFull Text:PDF
GTID:2156360065455938Subject:Structural engineering
Abstract/Summary:PDF Full Text Request
Contractors Method, Comparative Method and Income Capitalization Method (ICM) are three common used methods in Income Property Appraisal. ICM has the strongest theoretical base among these three methods. When this method is applied, Net Operation Income (NOI) and the value of Capitalization Rate (Ro) are very subjective and difficult to estimate. This study intends to find a new method to decrease this subjective effective.The characteristics, sorts of real estate price, interior and exterior factors of swaying real estate price, and appraisal methods have been studied in this article. Having contrasted and analyzed the three common used methods in the way of market, this article come up to the conclusion that the Contractors Method reflects the product attribute of real estate, the Comparative Method reflects the commodity attribute of real estate, and the ICM reflects the investment attribute. It is a process in which the request on market equilibrium has been 100sened.According to our real estate market operation features, a new estimating RO method has been put forward. In this method, land investment percentage in the total investment has been under consideration. Delighted by Monte Carlo method principal and its applying in risk analysis, this article uses Monte Carlo method to estimate NOI, RO and appraisal result. A sample approves that this method is propitious to estimate NOI, RO and appraisal result. This sample also conforms that this method can make the appraisal results more objective, and it is a feasible method.In the bottom of this article, the conclusion of this study has been summarized, and some suggestion on popularization ICM has also been mentioned.
Keywords/Search Tags:Income Capitalization Method, Monte Carlo method, Capitalization Rate, Net Operation Income, Real Estate Appraisal
PDF Full Text Request
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