The Research Into The Improvement Of Market Comparison Approach To Real Estate Appraisal

Real estate appraisal as an industry which mainly evaluates the real estate price, protectsthe rights and interests of all parties about transaction, and plays a role of “economic police”in the real estate market. Once leaving it, the real estate market will inevitably lose theirfairness and lacking of fair competition, there will be no stable market order. Therefore, thereis an urgent need for professional valuators to use scientific assessment methods to indentifyand evaluate its value. The market comparison approach is a means of evaluating the realestate price with reference to the real transaction price of the similar real estate in theappraisal date. Compared with other approaches, the evaluation principle of the marketcomparison approach is easily understandable and the most important thing is that it canreflect market condition of the real estate in the process of appraisal, which make it the mostcommon approach in the real estate appraisal approaches and recognized by the internationalappraisal community.The paper introduces the concept, formation and classification of the real estate price andintroduces the concept, characteristics, procedures and methods of the real estate appraisal aswell as the real estate appraisal theory. On the basis of the theatrical research, the paper alsoelaborates the basis principles and estimation steps of the traditional market comparisonapproach. The paper also summarizes the major problems and difficulties arising in usingmarket comparison approach such as the randomness of selecting comparative cases and thesubjectivity of the real estate condition adjustment. To solve this problem, the paper attemptsto explore the market comparison approach and introduces the establishment and applicationprocess of the fuzzy mathematics and AHP model. Finally, the paper demonstrates thespecific appliance of the new improved methods taking the actual case for example, whichplay a greater advantage and make a better service in the evaluation of the real estate appraisal industry.