Determination of regional capitalization ration for real estate valuation in urban areas: Amasya/Merzifon case

The most important problem in real estate valuation is not to be found an exact model that affect to value of the real estate. Therefore, many methods have been developed for real estate valuation. Each method has advantages and also disadvantages over the others. Aim of the study is to introduce and evaluate real estate valuation methods used in Turkey. It is aimed to determine capitalization rations from information of local real estate's on a case study area. Capitalization rations were determined by grouped real estates in quarters of Merzifon district in Amasya based on structural properties for each group. The calculated capitalization rations are constants indicating rate of return of groups and average valuation gained from incomes. Keywords: Valuation methods, Real estate valuation, Capitalization ratio.