Is it okay to use the market method for land in real estate valuation?

The basic methods of land assessment include market comparison method, income reduction method, cost approximation method, residual method and benchmark land price coefficient correction method, and the route price method is also a commonly used method in land assessment.

The market comparison method is one of the most basic and commonly used valuation methods in land valuation, and it is also the basic valuation method commonly used in the world. The market comparison method is a method that compares the land to be evaluated with the similar land that has been substituted and recently traded in the market according to the principle of market substitution, and makes appropriate corrections to the transaction of similar land, so as to estimate the objective and reasonable method of the land with estimate. The rationale for market comparison is based on the principle of alternative economy.

According to economic theory, in the same market, for goods with the same utility, there should be the same market**, that is, with a complete substitution relationship. Two or more commodities that have a substitution relationship in the same market will tend to be consistent because they compete with each other and make them contain each other. The market comparison method is to find the ** parcel to be assessed by amending the transaction ** of similar land with a substitution relationship.

That is, if you can find more than two traded lands with the same utility that have a substitution relationship in the same market, you can use it.

I don't know what city you are in, it is theoretically possible to use the market method for land, but in reality, do you have a lot of land transaction cases to compare? If not, then no, generally land is based on the benchmark land price method and the residual method.

Theoretically, the practical operation is to first find three or more recent land transactions of the same type in the same supply and demand circle as the parcel to be evaluated. In terms of regulations, it is possible to deal with transactions within three years, but in practice, it is more appropriate to deal within one year. The floor price level of the comparison case should be comparable, and you can't find the kind of special case where the ** level is much different from the normal market level.

Factor correction is then made. The basic factors that are the same are: land grade correction, transaction method correction (whether it is bidding, auction and listing transfer or payment of transfer fee, etc.), transaction situation correction (whether it is a normal transaction), service life correction (land use remaining period), transaction period date correction (based on the land price index).

The revision of regional factors should be based on different land uses, such as commercial land is often more important for industrial agglomeration and prosperity of commercial services, residential land is more important for the convenience of public transportation and public facilities, and industrial land is more important for transportation conditions and inter-industry cooperation conditions. Individual factors are basically the correction of plot ratio, land shape, area, terrain slope, geological conditions, planning restrictions, etc. Set the parcel index to 100 to correct the comparison case.

You can get the three comparison cases according to the ** modified ** according to the parcel to be valued, and then take the average of the three comparison cases to find the ** of the parcel to be valued.

All the trading behaviors of economic agents in the market always pursue profit maximization, that is, to seek maximum profits with the least cost, so when choosing commodities, we must choose the utility of high and low, if the utility is compared with the first, the highest is too high, and they will stay away. The result of this kind of economic agent's choice behavior produces a substitution effect between commodities with equal utility, so that commodities with substitution relations can contain each other and tend to be consistent with each other. The market comparison method is to compare the land to be assessed with similar land transaction examples that have been traded in the recent period according to the principle of substitution, and according to the latter's known **, with reference to the differences in the transaction situation, date, region and individual factors of the land, the method of modifying the land price on the appraisal base date of the land to be assessed.

It is calculated as follows:

v＝vb×a×b×d×e

where: v--- parcel to be valued**;

VB --- Comparison Example**;

a--- Parcel Situation Index Compare instance parcel condition index;

b--- Land price index on the base date of the parcel to be assessed Compare the land price index of the transaction date of the parcel of the instance;

d--- Parcel Area Factor Condition Index of the parcel to be evaluated Compare the instance parcel area factor condition index;

e--- Individual Factor Condition Index for Parcels to be Evaluated Compare the Individual Factor Condition Index for instance parcels.