Research On The Problems And Improvement Of The Real Estate Appraisal Methods In China

The are there basic methods widely used home and abroad:market comparison approach, income approach and cost approach. In the real estate appraisal practice, in the application of the three methods are flawed and inadequate to varying degrees, this paper analyzes the basic principles of traditional methods assess basic theoretical valuation formula, scope and valuation processes, etc. as well as its application in the real estate appraisal on the basis for a more in-depth study. Market comparison approach is one of the three basic widely used methods, but this method has some problems in practice, such as the selection of cases more casual, correction factors are somewhat subjective, and so on; The main problems in the practical application of the income approach is that it is difficult to determine the capitalization rate and earnings estimates for selected years and future net revenues, and for the same location, and the house into the New Age of degree and the same circumstances, using different capitalization rate will result in a big difference. This paper summarizes the problems of the traditional market comparison approach and makes improvement research based on the basic principle, valuation formula, the applicable scope as well as the valuation process of the traditional market comparison approach. By using The Gray Relational Degree Model, the correlation degree between real estate to be estimated and comparable examples to be selected can be calculated. Then the comparable examples Can be selected objectively. By using Set-pair Analysis Model, the weight of each factor is determined according to the variation degree, which the factors’impact on real estate price to be estimated is taken into consideration. In the traditional method, I introduce the income Risk-Earning Analysis model to analyze and evaluate the object by financial indicators. By analyzing financial indicators to assess the object, I establish a model for determining capitalization rate, and the calculated capitalization rate can be applied to different assessment objects to improve the accuracy of the assessment results.