The study aims to analyze the discrepancy between the theoretical principles and the actual practice of real estate appraisers in the value estimating process, thereby establishing the code of behavior and finding appropriate solutions. Research metho...
The study aims to analyze the discrepancy between the theoretical principles and the actual practice of real estate appraisers in the value estimating process, thereby establishing the code of behavior and finding appropriate solutions. Research methods are mainly by real estate behavior research and real estate decision making theory. Especially, judgment and decision making theory is the core that it is related to the cognitive psychology. Prior study cases in real estate behavior research and appraiser`s behavior materials in this paper are analyzed. The study finds that the Biases can arise in the interpretation and application of comparable sales in the value estimating process of real estate appraisals. It is a example of Biases that result from Uncertainty in value estimating process. This paper finds the reason of Biases for Heuristics and Uncertainty as it is analyzed in the principles. In order to overcome such Biases, the appraisers` efforts to debias, the improvement of appraisal environment, and the comprehension of the appraisal estimating process are necessary. The Limits of this paper is that it is hard to generalize the appraisal`s behavior. Real estate behavior research is few in Korea in spite of importance that it is necessary to understand the Human being. As behavior research is a part that could widen more and more theoretical system of Real Estate Science and that could make interdisciplinary study lively, the part henceforth is considered to be a way to make more firmly international exchanges of Korea`s Real Estate Science and to understand meaning of human being in Real Estate Science.