Real Estate Valuation Theory And Practice

This article makes a thorough study of real estate price. After analyzing the current situation and development of the real estate price at home and abroad, the author deems that it is quite unusual to make a comprehensive and systematic study of the real estate assessment based on quantitative analysis. Therefore, it will be significant theoretically and practically for the development of the real estate assessment in our country to learn from the evaluation system in Britain and America.At the very beginning, the essay makes a particular introduction of real estate and its price from three aspects, namely type, characteristic and factors of influence. Then it expatiates the fundamental and significant three theories of assessments and methods, say, method of cost, method of income and method of market comparison. What's more, it brings up the improved theory for the traditional method of cost and builds up a model for blurred mathematic method in the method of comparison. Next, it analyzes the process of establishment of the real estate price index system. At last, it gives the analytical methods for the assessment of real estate.To take the residential district of XinKang Garden as an example, the author makes an assessment of its price using the theory of comprehensive evaluation and associated theory together with the GIS technology, the Internet and the Delphi Method. The conclusions are as follows:1. It will lead to a good result to put the blurred mathematic method into the business of purchase money, judge the similarity between the cases of real estate projects of the same kind and the project with an undecided price, and make use of the corresponding formula to reckon the reference price.2. Through the study of characteristics of real estate assessment, an influencing system can be built which can exert an influence on the price. We can analyze the importance of each factor through the analytical method from different levels and make a gray connective mathematic model to evaluate the real estate projects.3. It will obtain the certain value of income to make a foundation of a dependable income theory based on probability, to analyze the future income through its probability, to determine the distribution type of the probability, and to make a complicated multi-dimensions calculation by using the dependable index and probability.4. It is more scientific to use the combination of the blurred comprehensive assessment model which assess from a general view and the gray connective mathematic model which assess from specific views. Meanwhile, according to the author, both these two methods need a large quantity of data, so to combine these two methods with management information system and statistic theory will be a future trend.5. It will also be prospective for the development of real estate assessment to use the GIS technology, the Internet and the database in the foundation of real estate assessment information system.