Study On Approach In Real Estate Appraisal

In nowadays, people use three approaches that are market comparison approach, income approach and cost approach to evaluate real estate, these three approaches have different range and rely on different theories, they consider different factors, and even their evaluating results are different.Though market comparison approach, income approach and cost approach have been the basic approaches in real estate appraisal, there are still some places that are inaccurate or undefined, these places give wrong affect to the veracity of the evaluating price. The article starts with the three approaches, combines with some relevant cases, and gives some analysis to their using process. Furthermore, the article pays attention to market comparison approach's affect factors, points that there should be different proportion among genes in district factors and individual factors. In income approach, the article analyzes the income and deoxidize rate, points that deoxidize rate should be in order of indirect method and invest combination method. In cost approach, the article analyzes profit margin and investment interest rate, points that the profit margin between real estate built by livers or businessmen should be different, and invest interest should be accounted according to capital provided by builder or by loans.