(A) the basic premise of the existence of professional valuation
The survival and development of a profession or even an industry must be based on the internal needs of society, and it is difficult to maintain it for a long time only by external mandatory requirements such as administrative orders. Therefore, if the public can't know or understand the reasons for the existence of a profession and an industry and its contribution to social welfare and social progress, it will be difficult for such a profession and an industry to survive in a modern competitive society, let alone develop continuously.
Although the price of any asset needs to be measured and determined in the transaction, it is understandable that the appraisal industry wants all assets to be valuable, but not all assets need professional appraisal. For assets with small value or easy to determine the price according to the usual methods, professional evaluation is usually not needed. For example, Article 4 of the Provisions of the Supreme People's Court on Auction and Sale of Property by People's Courts in Civil Execution (Fa Shi [2004]16) issued on June 25, 2004 stipulates: "The people's court shall entrust an appraisal institution with corresponding qualifications to evaluate the price of the property to be auctioned. If the value of the property is low or it is easy to determine the price according to the usual method, the evaluation can be omitted. " It can be seen that only when an asset has two characteristics of "uniqueness" and "great value" can it really need professional valuation. This is because: if an asset does not have unique characteristics, there are many similarities, the price is universal and well known, or ordinary people can know it according to the usual methods (such as simple comparison), there is no need for professional valuation. Although an asset has unique characteristics, if its value is not large enough, the cost of hiring professional institutions or professionals to evaluate it is higher than the value of the asset itself, or even exceeds the value of the asset itself, and it is not economical to hire professional institutions or professionals to evaluate it, there is no need for professional evaluation.
(B) Real estate needs professional valuation
What really needs professional appraisal is real estate, antique works of art, mineral resources, overall assets of enterprises, some machinery and equipment, intangible assets and so on. As far as real estate is concerned, the real estate market has the characteristics of immovability, uniqueness and great value, and is a typical incomplete market. In economics, a "complete market" must meet the following eight conditions at the same time: ① homogeneous goods, buyers don't care who they buy from; A large number of buyers and sellers; 3 buyers and sellers have the freedom to enter and leave the market; (4) Both the buyer and the seller have complete information about the current price and can predict the future price; ⑤ As far as the total turnover is concerned, the amount of each buyer and seller is irrelevant; 6. There is no collusion between the buyer and the seller; ⑦ Consumers demand maximum total utility and sellers demand maximum total profit; The goods are transferable and can be moved in space. A market that does not meet any of the above eight items is an incomplete market. Pure complete market hardly exists in reality. Stock exchanges and wheat markets are usually considered as examples of near-perfect markets. As a commodity, real estate has different qualities and complex characteristics, which does not conform to Articles ① and ④. In addition, although the ownership of real estate (the ownership of houses and the right to use construction land in China) can be transferred, the real estate cannot be moved, which is also inconsistent with Article 8. Therefore, the real estate market is usually considered as a typical incomplete market.
Because the real estate market is an incomplete market and the market information is asymmetric, there are many factors that hinder the reasonable formation of real estate prices, which will not automatically form a suitable price that ordinary people can easily identify. In its judgment, it needs professional knowledge and experience, so it needs real estate appraisers to provide market information and evaluate the "alternative" market. Real estate appraisal is helpful to standardize real estate prices, promote fair real estate transactions and establish a reasonable real estate market order.
It is worth pointing out that in different types of assets that need professional evaluation, due to their different characteristics, the professional knowledge and experience required to grasp the factors that affect their value are very different, such as quality, performance, old and new degree, property rights, possession and use, market conditions and so on. Therefore, it is usually incompetent for the same appraiser or even the same appraisal institution to evaluate their values. For example, for real estate, antiques, minerals, machinery and equipment, intangible assets and so on. It is difficult for the same person to "know the goods" for them, let alone evaluate their values scientifically and accurately. Furthermore, appraisal is closely related to the appraisal object, which is different from some professional services floating on the object, but similar to design. Architectural design, automobile design, clothing design, hairstyle design, etc. They are all designs, and they all need modeling and aesthetic feeling, but they are still "interlaced like mountains". For the public, usually only appraisers with corresponding professional knowledge and experience can make the appraisal results convincing and credible. Therefore, there is bound to be an appropriate division of labor in the appraisal, and different professions and corresponding appraisers will be formed according to the appraisal objects. Internationally, appraisal majors are generally divided into real estate, antiques and artworks, mineral resources, machinery and equipment, enterprise value, intangible assets and so on. Even real estate appraisal, in developed countries and regions such as the United States, is usually divided into two categories: residential appraisal and commercial real estate appraisal. In these two categories, there are their own professional categories. For example, residential appraisal, some real estate appraisers specialize in small-area (one to four units) residential appraisal used by many households, and some real estate appraisers specialize in large-area residential appraisal. In commercial real estate appraisal, some real estate appraisers may specialize in land development appraisal, and some real estate appraisers may specialize in industrial real estate appraisal, office building appraisal, or retail commercial real estate appraisal. In short, if the evaluation is unprofessional, the appraiser can evaluate any asset, just as a teacher can teach any book and a doctor can see any disease. Some appraisers may gain temporary benefits because all appraisal businesses can be contracted, but due to their insufficient professional development, they can't provide high-quality services, which leads to a "trust crisis" that is not recognized by the society, has no social respect and has no dignity, and the appraisal industry is difficult to develop sustainably. The ultimate victim will be the appraisal institution, which can specialize in some assets appraisal business and become a professional appraisal institution according to the professional situation of appraisers and their own development orientation. Or engage in a variety of asset appraisal business and become a comprehensive appraisal institution.
(3) Real estate appraisal is the main body of the appraisal industry.
Real estate appraisal is not only necessary, but also dominant in the appraisal industry. This is determined by the following three aspects:
(1) Real estate is "large in quantity and wide in scope", and the number of other assets is relatively small. The number of real estate is huge, and the social ownership and annual increment are very large. In all the wealth of a country or region, real estate accounts for the largest proportion, generally accounting for 50% ~ 70%, which means that the sum of other kinds of wealth is not as good as real estate, accounting for only 30% ~ 50%. For example, in 1990, the real estate value in the United States was $8.8 trillion, accounting for about 56% of all American wealth. Real estate is also the most important part of family property. According to relevant data, the proportion of real estate in total household assets is 30% ~ 40% in western European countries and about 25% in the United States. The average American family owns four times as much real estate assets as stock assets. In 2002, among the properties of rural residents in China, land and real estate were the two largest, accounting for about 74%; Among the properties of urban residents, real estate accounts for 64.39%.
Among other assets whose total amount does not exceed real estate, many assets do not need professional evaluation because they do not have the characteristics of "uniqueness" and "greater value" at the same time. Although some assets need professional appraisal in theory, due to the small quantity, the appraisal business is "once in a thousand years", so it is difficult to support people to specialize in their appraisal activities, and there is no corresponding appraiser. Once an assessment is needed, it is usually necessary to rely on relevant researchers or designers and manufacturers to provide professional advice. Among other assets that need professional valuation and can support people to specialize in their valuation activities, they are generally divided into professions. These make other assets appraisal majors relatively small, and the main position of real estate appraisal in the appraisal industry is more prominent.
(2) Real estate needs to be evaluated more, while other assets need to be evaluated less. Other assets other than real estate are mainly transferred and need to be valued in the case of transfer. In addition to the transfer of real estate, leasing, mortgage, expropriation, expropriation, taxation and other acts will generally occur. Therefore, not only the transfer of real estate needs valuation, but also the activities of real estate leasing, mortgage, expropriation, requisition, division, damage compensation, taxation, insurance and so on. Throughout the ages, the demand for real estate appraisal is far greater than that of other assets appraisal.
(3) Real estate appraisal generally provides real estate consulting services, while other assets appraisal is mainly limited to the value appraisal itself. Because the real estate appraiser not only knows the value and evaluation of real estate, but also has professional knowledge and experience about real estate price and its influencing factors, and understands the real estate market, and is also a "real estate price expert", "real estate market analysis expert" and "real estate investment consultant". People usually ask real estate appraisers and real estate appraisal institutions to undertake real estate market research, real estate investment project feasibility study, real estate development project planning, real estate project investigation and evaluation, real estate purchase analysis and so on. This makes the real estate appraisal industry have a bigger and broader development space.