| Title |
Real Estate Appraisal Method for the Remodeled Office Building - Focusing of Income Capitalization Method - |
| Authors |
Kim, JungWoo ; Cho, Kyuman ; Kim, Taehoon |
| DOI |
http://dx.doi.org/10.5659/JAIK_SC.2016.32.7.57 |
| Keywords |
Remodeling Office Buildings ; Real Estate Appraisal ; Income Capitalization Method |
| Abstract |
Although it is reported that vacancy and lease rates of office buildings could be improved remarkably due to after remodeling work, it is difficult for the remodeled office buildings to incorporate such profitable improvement appropriately into wherein the real estate appraisal for them was conducted. Based on income capitalization method, which is one of the three current appraisal methods and considering as a proper candidate in conducting appraisal for the remodeled buildings, this paper aims at clarifying how the method can evaluate the monetary value of the remodeled office building accurately. For achieving such objective, i) the method (i.e., income capitalization method) was applied to the 25 remodeled office cases available with their market price in order to calculate their appraisal prices, ii) a comparison between the projected price by appraisal and real market price was conducted, and iii) the comparison result was analyzed in terms of how the appraisal method calculates the price for the remodeled office buildings accurately. In conclusion, it is revealed that income capitalization method can evaluate the price of the remodeled office buildings relatively accurately (9.46% of error rate in average). |