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An Evaluation Model for Property-Purchasing Plans Based on a Hybrid Multi-Criteria Decision-Making Model

Author

Listed:
  • Jun-Kun Lin

    (Taipei Municipal Lao-Song Elementary School, No. 64, Guilin Rd., Wanhua District, Taipei 108, Taiwan)

  • Hung-Lung Lin

    (School of Economics and Management, San Ming University, No. 25, Ching-Tung Rd., Sanming 365004, China)

  • William Yu Chung Wang

    (Waikato Management School, University of Waikato, private Bag 3105, Hamilton 3240, New Zealand)

  • Ching-Hui Chang

    (Department of Accounting, Ming Chuan University, 250 Zhong Shan North Road, Section 5, Taipei 111, Taiwan)

  • Chin-Tsai Lin

    (Department of Business Administration, Ming Chuan University, 250 Zhong Shan North Road, Section 5, Taipei 111, Taiwan)

Abstract

Purchasing a property entails making rankings, comparisons, and trade-offs among various housing characteristics. When trying to sell a house, real estate brokers take on an important role as a middle-person between the seller and buyer. Thus, this research sets up a dynamic price recommendation method for housing purchases and applies the fuzzy multiple criteria decision making (FMCDM) technique, so as to realize housing quality and evaluation. We utilize this method based on the prospect theory of the loss aversion effect, in order to aid real estate brokers’ job of coordinating between the seller and buyer. The method helps us to provide an objective view of the evaluation matrix. From the pricing strategy, the results are able to match price versus quality and improve brokers’ intermediation effects. The brokers can subsequently make recommendations regarding a suitable price, decisions on negotiation strategies to reach an agreement, and settle upon an acceptable price.

Suggested Citation

  • Jun-Kun Lin & Hung-Lung Lin & William Yu Chung Wang & Ching-Hui Chang & Chin-Tsai Lin, 2020. "An Evaluation Model for Property-Purchasing Plans Based on a Hybrid Multi-Criteria Decision-Making Model," Mathematics, MDPI, vol. 8(6), pages 1-18, May.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:6:p:860-:d:363018
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    References listed on IDEAS

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    Cited by:

    1. Alfonso Valero, 2024. "Diversification strategies for indirect real estate. Intersection of business, economics, and society in shanghai mixed-use developments," SN Business & Economics, Springer, vol. 4(10), pages 1-26, October.
    2. Valero Alfonso, 2024. "Transforming Megacities: Value and Impacts of Mixed-Use Developments with Multi-Criteria Decision-Making," Real Estate Management and Valuation, Sciendo, vol. 32(2), pages 112-125.

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