Study On Perfecting Of Market Comparison Approach In Real Estate Appraisal Approaches

Market comparison approach is a means of evaluating the price of real estate with reference to the real cost price of current real estate with similar qualifications. The approach is universally recognized as one of the simplest, the most direct and the most frequently used methods in the international evaluating system of real estate. On one hand, the working principles of market comparison approach are easy to understand compared with other methods; on the other hand, it directly reflects situation of the real estate market. China Real Estate Regulation stipulates that if conditions permitted, market comparison approach must be employed in evaluating both land and real estate. It is now a trend to use market comparison approach to evaluate real estate, and how to scientifically use it is a problem to be urgently solved in real estate.The thesis attempts to make theatrical research in three aspects: the characteristics of real estate prices and factors affecting these prices; the content, principles, and characteristics of real estate evaluation; the working principles, procedures and present situation of market comparison approach. The thesis also summarizes the major problems and difficulties arising in the usage of market comparison approach, such as the random choice of comparative case, the subjectivity and incompletion of elements-revising, the inaccessibility of transaction case. To solve these problems, the author put forward a new calculating method and her own original idea about these problems.The thesis is divided into three parts. Firstly, the author establishes the fuzzy pattern recognition's model for selecting com parable instances , and then prove the feasibility of the practice. Two calculating methods are advanced responding to fix membership grade and weight, two issues still not satisfactorily explored, and in the way, the degree of precision is improved. Secondly, the author believes that the rights and interests of real estate should not be ignored in elements-revising and put forward new calculating method of revising elements. Thirdly, district factors and specific elements are fixed by resorting to the characteristics of fuzzy complex evaluation, and the comprehensive price is figured out with the help of the improved the first smooth index。 All the above revisions are based on the calculations in evaluating case. A comparison is made on the degree of precision between the traditional market comparison approach and the improved one, thus the feasibility of improved one is proved.Finally, pertinent suggestions are given on dealing with the insufficiency of evaluating cases. The author also summarizes the achievements in improving calculating methods and points out that market comparison approach is closely related to computer technology and the usage of computer should be enhanced in market comparison approach.