Integrated Application Of Grey Theory And Fuzzy Set Theory On Real Estate Appraisal

With the development of socialistic market economy and the transformation of economic mechanism in China, use of land is no longer free of charge. As the real estate industry and economy develop fast, the related economic activities become more and more active. Under such circumstance, the real estate appraisal occurs as a new industry. By analyzing the real estate market situation, grasping the appraisal standard, taking the real estate's supply and demand and price level into account, the professional valuator determine a fair and reasonable price for each real estate according to the standard appraisal procedure set by government. The real estate's price depends on valuator's subjective judgment as well as the real market data, the combination of which will make a wise decision.This thesis stands the point of improving the objectivity and precision of real estate appraisal. It does some research on the market comparison method by using grey theory and fuzzy set. Grey theory is a very useful tool to process small sample data and uncertain information, while fuzzy set is good at analyzing fuzzy concepts and information. Grey theory is used to decide the weight of each factor which affects the real estate' price, then each factor's weight is combined with its appraisal value to find the most similar samples with the object real estate by using fuzzy cluster analysis method. The object's price is decided by referring to the similar samples at last. In addition, this thesis forms its own opinion after summing up and analyzing the application of grey theory and fuzzy set in the real estate appraisal.