A Study On The Improvement Of Market Comparison Approach To Real Estate Appraisal

The market comparison approach is universally recognized as one of the simplest, the most direct and frequently-used methods in the international evaluating system of real estate. On one hand, compared with other methods, the working principles of market comparison approach are easy to understand; on the other hand, it directly reflects the situation of the real estate market. China Real Estate Regulation stipulates that if conditions permitted, the market comparison approach should be used to evaluate both land and real estate. Therefore, how to scientifically practice the market comparison approach in evaluating the price of real estate has become a trend and a problem crying for a solution.This paper analyzes theoretically first the effect of real price, the content, the principle and the characteristic of real estate, the utilization principle, the step and the present conditions of using market comparison approach are analyzed theoretically, and then concludes the difficulty and the problems, the choice of compared examples at will, the factor revise subjectively and incompletely, the choice of transaction case uneasy to get and at present, and the fuzzy theory model of market comparison approach has some unscientific nature and unfairness, which exit in the process of using market comparison approached. Therefore, it is urgent to seek more scientific, reasonable estimate models and the process of scientifically using the market comparison approaches.Followly, this paper discussed the application of fuzzy theory in the market comparison approach, and in base of the real estate appraisal theory and the newest research results of fuzzy theory, applies the Subordination Principle and the Eigen-Factor Function Value to produce the structure of real estate properties. Through the calculation of Similarity Degree difference of To-Be-Appraised Property and Appraised Property, a most-similar case appears. Through the similarity degree and the index method, the fuzzy mathematical model of the market comparison approach is established. Compared the precision between the traditional and the improved market comparison approach, and proved the feasibility of the fuzzy mathematical model. Finally, the paper explained this model example application with a case.