Construction of market pricing model

Abstract

Introduction. In the process of determining the value of real estate, the analysis of the real estate market is often purely formal. We have to admit the absence of a fully-fledged section on the analysis of the real estate market in the national standards, as well as the lack of awareness of many appraisers with the conceptual foundations of this methodology. Such situation caused the fact that the section of evaluation report on the market analysis is not organized as part of the research algorithm; consequently, it is not connected with other sections and the report in general. The cost is calculated by one or several standard approaches: cost, revenue, comparative. As a result of coordinating the evaluation results obtained by different methodological approaches, only one digital value is obtained. On its basis, it is necessary to draw conclusions about the value of the object of valuation in the market, its investment attractiveness, and the efficiency of its management system.

Purpose. The article aims to develop theoretical and methodological provisions and practical recommendations for constructing a model of market pricing.

Results. The differences between individual and mass valuation of real estate have been determined. The essence of the methodology of constructing a model of market pricing has been revealed. A complex algorithm for constructing a model of market pricing has been developed.