It is very important to determine use zones and neighborhood in real estate appraisal. Because forces influencing the value of real estate are different depending on use zones and neighborhood can be a criterion to judge the necessity of regional fact...
It is very important to determine use zones and neighborhood in real estate appraisal. Because forces influencing the value of real estate are different depending on use zones and neighborhood can be a criterion to judge the necessity of regional factor comparison. The definite criterion and concept about neighborhood hasn’t been defined and current relevant laws about the region didn’t be established. Therefore there is a lot of confusion in practical field. The purpose of this study to set a clear concept of neighborhood and to present the criterion on the judgement of neighborhood range. According to current state analysis, concept of neighborhood and the judgement of neighborhood range have been overlooked or ignored and selecting comparison cases in similar region within a market area was just 5.0% on the average. To improve these problems, it is needed to define clear concept of neighborhood legally and to set the criterion on the judgement of neighborhood range. Neighborhood is defined as use zones that has the same price level and the object real estate is belonged to. The criterion on range judgement is to set homogeneity and continuity. The details are as follows: i) Identity of use zones, ii) Identity of administrative district, iii) Identity of zoning, iv) Identity of price level, v) Natural continuity, vi) Humanistic continuity.