Research On The Approach Of Commercial Real Estate Appraisal Based On Fuzzy Mathematics

In recent years,with the rapid development of our country’s real estate market,commercial real estate market has been becoming surge in the whole real estate market.Residential real estate is gradually replaced by commercial real estate in investment because commercial real estate has its advantages such as high value and high returns.Commercial real estate appraisal is very important in real estate transactions,the evaluation results play a significant role in protecting the rights of transaction participants and promoting our country’s real estate market develop steadily.In China,the development of real estate appraisal started late,and the research of evaluation methods is at the primary stage,so how to scientifically make use of evaluation method is propitious to the development of commercial real estate appraisal.Market comparison approach and income approach are widely used in commercial real estate appraisal.Our country’s current market comparison approach and income approach are built on the basis of relevant theories and methods from abroad on,and have made some achievements through the development of recent years.However,there are still exist defects in practice as follows: the optional choice of comparative cases,the subjectivity of factors revision,the unreasonable computing process of final price in market comparison approach,and the difficulties of obtaining capitalization rate in income approach.This paper firstly describes the concept of commercial real estate appraisal,and introduces commercial real estate appraisal and fuzzy mathematics correlation theory.Secondly,commercial real estate evaluation methods are summarized,theories of market comparison approach and income approach are discussed in detail.It analyzes in depth the problems in the current commercial real estate appraisal,and explores the applicability of fuzzy mathematics in the real estate appraisal.Thirdly,combining fuzzy pattern recognition’s model,membership and smooth index method and other related theories,we build the market comparison approach of fuzzy appraisal model to solve the questions such as the choice of comparative cases,the factors revision,computing process of final price.Combining the theories of fuzzy comprehensive evaluation and analytic hierarchy process,we build the income approach of fuzzy appraisal model to solve the question of capitalization rate.Finally,this paper empirically studies the improved market comparison approach and income approach by using two real cases of commercial real estate,and the accuracy of the improved method and the traditional method are compared to verify the feasibility of fuzzy appraisal model.