Three basic appraisal methods acknowledged by the international are cost approach, income approach and market approach. Although we do not always use market approach, it has wide foreground. Firstly this paper summarizes the market approach. On this base, it introduces the appraisal principle from the fundamental principle, application condition, advantage, disadvantage and status. Then it puts forward the economics principle, that is substitute theory, supply and demand theory, property right theory, equity law, different time law, different unit law and market arbitrage law. This paper stresses two appraisal models, straight compare approach and simulation regulation approach, and analyses the factors that are involved in the models. After that, it refers to the application difficulties and the solution. At last the paper discusses the exterior application conditions to remind all circles of paying attention to the market approach. |