The Research On The Method Of Real Estate Appraisal Based On Real Option

With the establishment and gradual perfection of the system of the real estate market in China, exercise of appraisal, as the agent in the real estate industry, plays an increasingly important role and serves in the increasingly broader scope in the real estate market. Real estate appraisal goes a long way to promote the normalization of the real estate price, to ensure the fair transaction in the real estate market, and to set up sound market system and reasonable order of transaction. Currently, the theories of real estate appraisal are still at the probing stage in our country; moreover, real estate appraisal calls for multi-dimensional development, therefore, the probe into the more scientific approaches is of both theoretical and practical significance.Chapter 1 reviewed the present situation of the real estate estimate theory and the method research both domestic and foreign, introduced the research topic and the research significance.Chapter 2, on the basis of analyses and studies on the real estate appraisal in terms of, its status quo at home and abroad, and the price property, and the factors influencing the real estate prices, systematically explicates three appraisal approaches widely-used at present-market comparison approach, income approach and cost approach, analyzing respectively the theoretical grounds, the application scope and the evaluation procedures of each approach. Point out the limit of three approaches is mainly that it ignores real estate value brought about by uncertainty and development flexibilityChapter 3 generally introduces real options theory, including definitions, sorts and pricing model, especially Black-Scholes model and Binomial -tree model. Meanwhile, it re-analyzes the transition from option to real options about relative variables and parameters.Chapter 4 discusses uncertain factors in real estate investment and points out the shortcoming of present approach. Then according to the characteristics in real estate appraise, it proposes a motion that real options approach should be adopted in real estate appraising but also provides applying framework and calculating steps. Distinguishes 4 kinds of real options in real estate appraise, and finds out potential value in qualitative and quantitative aspects. Later, it offers simply and concrete analyzing tools for value- appraising. Finally, proposed expression of the real estate appraise based on the real options theory.Chapter 5 used the real option method of real estate to study a case of real estate appraise.Chapter 6 generalizes the main points of this paper, and forecasts its development to apply.To analyze the case of real estate appraise, it is proved that the real option method is more available and maneuverable than the present method of real estate appraise. As a useful attempt to evaluate real estate , it is significant to apply the real option theory to study the appraise of real estate in China.