The Application Of Hedonic Price Model In Real Estate Appraisal

Selection and application of the real estate appraisal method are the prerequisite for scientific assessments of property values.It is commonly used in the evaluation practice of real estate method is the market method,income method and cost method.But in practical application,these three methods all have obvious disadvantages.For example,the correction of various factors is too simple,subjective and arbitrary in the most commonly used market method.In the using of income method,the net revenue forecast of future,the determination of capitalization rate is still a problem for appraisers.In the cost method,the composition of real estate price and the determination of housing depreciation remain controversial.These uncertainties make the scientific of the evaluation result greatly reduced.In view of this,this paper puts forward a new method of real estate appraisal to explore and research.In this paper,I first briefly introduce the application of three kinds of traditional methods,and analyze its limitations in the practical application,propose on the new method of valuation.According to the heterogeneity of real estate,I introduce the hedonic price theory and model in detail;illustrate the feasibility of the application of hedonic price model in the valuation of real estate.Secondly,on the basis of the hedonic price theory,I take the ordinary commodity housing in Chongqing city as an example to analyze.I collect a large number of trading sample data,and select the characteristic variables that influence on the Chongqing ordinary commodity housing price through study and summary the domestic and foreign literatures and combine with the characteristics of Chongqing ordinary commodity housing.All these lay a foundation for the construction of evaluation model.Thirdly,for different function forms models have different effects in actual application,I take the commonly used linear and logarithmic function forms to build models in this paper.Through comparative analysis,the logarithmic model is more suitable for the ordinary commodity housing price assessment in Chongqing.Fourth,I take logarithmic model and traditional market method to estimate the value of a set of residential.It is found that the application of logarithmic model is more convenient,and the evaluation result is more accurate.The appraisal model of the logarithmic form of Chongqing ordinary commodity housing price assessment reduces the interference of subjective factors,effectively improves the scientific and accuracy of the valuation,and greatly improves the efficiencyof assessment.The application of hedonic price model also has certain limitations,but the hedonic theory and model rich real estate appraisal theory and share a new ideal.