Interval Analysis of the Income Approach

摘要

There still exist many limitations and defects in theory and application when using the Income Approach to appraisal real estate, which causes uncertainty of appraisal value and weakens the reliability of appraisal to a great extent. In this paper, taking land price appraisal for example, we use interval analysis to estimate uncertainty of appraisal results which are caused by uncertain value of net income and capitalization rate. The interval includes all possible values and index such as interval width can be used to measure the uncertainty degree of appraisal results, which improve the reliability and credibility of appraisal results, and perfect real estate appraisal theory.