Research On The Method Improvement Of Residential Real Estate Value Evaluation

After more than 30 years’ reform and opening-up, China’s housing industry has been developed rapidly under the circumstances of high speed development of society and economy. Housing appraisal has increasingly become the focus in housing industry. However, due to the research time of real estate appraisal theory research is shorter in our country; both the common market comparison method and income method used in housing appraisal have some problems, leading to a big deviation between the appraisal result and the real value of the appraisal object. For instance, there exists more random in choosing comparable property and the stronger subjectivity in each factor’s quantification correction in the market comparison method. Both methods in dealing with choosing comparable property and each factor’s quantification correction are simple and rough, which influence the accuracy of the final evaluation results. At the same time, due to all these existing factors, under the temptation of economy benefits, in order to cater to the clients’ needs, some appraiser tend to use the operational methods to choose the cases and correction factors, influencing the authenticity and accuracy of the appraisal results, which has hindered the healthy development of the real estate market. On the income method, the choice in calculating the price is quite single; the future rate of return on net income and the rate of pay are not so objective and fair in measurement, which can greatly affect the final evaluation results. Therefore, the way how to use market comparison approach and income method to estimate housing scientifically has become an urgent problem to solve China’s real estate appraisal. This research is aimed at improving the assessment methods of residential real estate value by using some relevant mathematical models. When improving the methods of housing appraisal, this research is trying to revealing the objective value of the appraisal objects, reducing the subjective randomness and fuzziness in the actual evaluation process. Finally, this research aim at making the evaluation report users have a more accurate understanding of the assessment results.This dissertation takes the residential real estate as the research object; aims at improving evaluation methods of the residential real estate value; mainly chooses literature research method, comparative study method and case study method. Based on the introduction of research background and research situations at inland and abroad, this paper first expounds the basic theories, concepts, principles, methods and defects of the real estate appraisal, and then put an emphasis on analyzing the characteristics and influencing factors of housing evaluation. Aiming at the defects of market comparison method, there introduce the fuzzy mathematics theory and use the closeness to choose comparable property. Then use the entropy AHP method to determine the weight of each index factor. Finally, use experts’ score and the weight of each index factor to calculate the final price. This can greatly reduce the subjectivity in the process of valuation. In view of the defects of the earnings, put forward suggestions for the choice of the income method formula first, then apply the idea of fuzzy comprehensive evaluation to improve the market extraction method, to obtain reliable return rate, to calculate valuation result at last, in order to improve the accuracy of the appraisal result. Finally, with actual case analysis demonstrates the concrete application of improved market comparison method and the income method. Through comparison on accuracy of valuation results between the improved methods and the previous, this research has verified the feasibility of the model. And then to sum up, this dissertation puts forward some suggestions for the effective improvement of evaluation methods and the smooth development of the residential real estate appraisal work.