Applicationg Of Real Estate Valuation Income Approach

With the continuous development of China’s real estate market, real estate prices become the focus of widespread concern, real estate valuation is also more and more people’s attention. The income approach is a first for the Commission estimated future assets, net income forecast, and then choose the appropriate capitalization rate or a rate of return would be expected to translate into net income valuation method of valuation of the object value strike Compared to other methods of real estate valuation, will be applied to the income approach valuation can only be estimated unbiased estimates of the fair value of real estate, you can also explain the source of that value:the present value of future net cash flows of the real estate and to be estimated. Thus assessed by the domestic industry’s favor. China’s " Real Estate Appraisal " clearly provides that in areas where conditions permit must use the income approach to assess the price of real estate. However, in some places from the current method, the application of the income gains of real estate valuation point of view, its findings often there is a big difference between the actual transaction price, the reason is multifaceted, the income approach to assess the results of their own defects accuracy is not high is an important reason. Based on this, this paper applied research topics income property valuation income approach, in order to optimize the use of the income approach to improve the profitability of real estate appraisal.This paper analyzes the theoretical basis and the legal basis for the profitability of real estate appraisal and valuation principles of necessity and profitability of real estate valuation. Considering the profitability of real estate appraisal cost approach, income approach and the market comparison approach; then1to2layers of a commercial real estate and a large commodity wholesale market in Zhengzhou City, Henan Province, the valuation process for example systematic induction comb Net income in the income approach, such as the presence of difficult to accurately quantify the subjectivity big strike rate of return applies only generate economic benefits and real estate issues, and on this basis, more in-depth analysis of the problems of many reasons; made recommendations for improvement, the introduction of the risk-free rate plus a risk adjustment method, the income method to conduct applied research, the establishment of a capital asset pricing model; finally improved the income approach used in Zhengzhou City, a bus station in the use of mortgage valuation, draw assessment income method improved earnings compared to the original method of assessment results closer to the actual results of the assessment greater accuracy...