Study On The Application And Improvement Of Income Method In Real Estate Valuation

With the accelerating urbanization in China,the land for urban construction continues to expand,the residents' demand for housing increases,and compensation for the demolition of houses.The demand for real estate valuation has greatly increased,and it is of utmost importance to assess the real estate value scientifically and reasonably.In the process of rapid development of China's real estate industry for nearly 30 years,real estate is not only a kind of life essential product,but also has become a kind of commodity,and it has two attributes of living and investment income.The income method has become one of the commonly used methods in real estate valuation.However,due to the late development of China's real estate valuation,there are still many deficiencies in the application of the income approach,which needs to be studied and improved.This article combines the current real estate value assessment background,combing the relevant theory and common methods of real estate valuation.The deficiency of the income method in real estate appraisal is analyzed: the sample size is small,the parameter value is subjective and the data validity is low.Therefore,the Monte Carlo simulation method is introduced in this paper to improve the traditional income method,and the applicability,necessity,and specific operation steps of the method are described.At the same time,a concrete verification of the improved income method was conducted using the case.The following conclusions are drawn:(1)When the traditional income approach evaluates the real estate value,the treatment of the parameters is too simple,leaving room for artificially overestimating or underestimating,which leads to a decrease in the authenticity of the assessment results.(2)When evaluating the relevant parameters,the appraisal personnel have a narrow sample selection capacity and do not take into account market volatility.(3)The evaluation results of Monte Carlo simulation improved income method are more in line with the real transaction price.Finally,based on the research conclusions,this paper puts forward corresponding policy recommendations from the perspectives of the evaluation agencies,government departments,and industry associations: introducing Matlab into the assessment process,expanding the sample size and improving the objectivity of the assessment results;and strengthening the sharing of resources among assessment agencies.The convenience of data acquisition;strengthen the supervision of the real estate appraisal industry,evaluate the subjectivity of the personnel through mandatory reduction of the law,and strictly review the market access of the appraisal agency;it must not be used to reduce the quality of the industry.