Analysis of the value and price of real estate and concurrently on the appraisal of mortgage value

Abstract

Research Purpose: This research seeks to probe deeply into the internal relation between the market value and market price of real estate to provide the basis of a scientific "definition of value". Research Methods: Documentation and logic reasoning were employed. Research Results: In the practice of real estate appraisal, the standards for "market value" are not applicable to all appraisal projects; and for the appraisal of a single object, the value standards vary with the purpose of the appraisal even under the same market conditions. Research Conclusion: In appraisals for the purpose of real estate mortgage, market value standards should be applied, particularly during periods of irrational advance of the real estate market; but in appraisals for the purpose of real estate transfer, market value standards may not be applicable because a determination of the actual market price is required, which may agree with or deviate from the market value. © 2014 Springer-Verlag Berlin Heidelberg.