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What does real estate appraisal mean?
The methods of real estate appraisal can be divided into three categories: market comparison method, cost method and income method. Market comparison method is to determine the market value of similar real estate according to the transaction records, which is suitable for areas with fierce market competition. The cost rule is to consider the value of existing real estate from the perspective of replacement cost, which is applicable to new sales. Income method is a valuation model based on the income and cost that real estate can bring, which is suitable for commercial property and rental market.
Real estate valuation is to provide people with an independent view of the market value of the real estate, and to provide reference for real estate transactions, asset loans, investment decisions, etc. Through real estate evaluation, we can find the advantages and disadvantages of the property and make the actual market positioning suitable for the characteristics of the property. Real estate appraisal can help the market allocate resources more rationally and promote economic development.
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